Governing AI virtual anchors in China’s live streaming E-commerce ecosystem: Policy challenges and global implications

The rapid advancement of generative artificial intelligence (AI) has fundamentally reshaped the traditional media value chain, transforming the processes of content production, distribution, and consumption. Among these developments, AI virtual anchors have significantly reduced operational costs and enabled the large-scale creation of content. However, their widespread adoption has also raised complex legal, ethical, and regulatory challenges. This paper investigates the governance of AI virtual anchors from three key dimensions. First, it examines how AI technologies are restructuring the media ecosystem, particularly in the realm of live-streaming e-commerce, by displacing human labour and creating new market dynamics. Second, it examines the associated legal and ethical concerns, including intellectual property disputes, the under-recognized rights of “ghost performers”, risks of misinformation, and consumer protection issues. Third, it evaluates China’s evolving governance responses, highlighting both proactive regulatory innovations and ongoing challenges. Starting from platform governance theories, this paper develops a China-specific regulatory narrative and identifies a multi-tiered governance system that involves the government, platforms, and public participation, and reveals the underlying logic that redefines platform roles in China’s digital governance architecture. This paper argues that China’s evolving governance of AI virtual anchors illustrates a distinct institutional model and aims to situate this experience within global discussions, offering comparative reference points for AI governance, particularly regarding platform responsibility, adaptive regulation, and public participation. • Discuss AI virtual anchors disrupt traditional media value chains. • Exam the legal and ethical challenges posed by AI virtual anchors. • Explore approaches taken by China to control the risks posed by AI virtual anchors. • Identify key regulatory challenges in China’s AI virtual anchor governance.