How Do Virtual AI Streamers Influence Viewers' Livestream Shopping Behavior? The Effects of Persuasive Factors and the Mediating Role of Arousal

With the exponential growth of livestream shopping and the development of artificial intelligence (AI), virtual influencers powered by AI have become a new trend. However, this phenomenon has yet to be studied precisely to understand the underlying mechanisms of virtual AI streamers' influence on the viewers. This study explores the effects of virtual influencers powered by AI by investigating the persuasive factors and underlying emotional mechanism that affect viewers' parasocial interaction intention and impulse buying intention. Data collected from 559 livestream viewers in a scenario-based survey were analyzed using maximum likelihood structural equation modeling (SEM) estimation and cross-validated using Bayesian SEM. The findings confirm the appraisal-emotion-action scheme and validate the role of arousal in mediating three persuasive factors and two behavioral approaches. Parasocial interaction intention was correlated with coolness, whereas congruence and mind perception were important antecedents of viewers' urge to buy impulsively. Furthermore, mindset had important moderating effects on arousal and parasocial interaction intention toward impulsive urges. This study extends the research on influencer marketing and livestream shopping. It also apprises marketing and retailing managers of the importance of nurturing an AI workforce and sheds light on IS management practice for potential industry opportunities.