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\begin{document}

\title{Replacing the entrepreneurial spokesperson: Synthetic (AI-generated) vs
organic (human) personas in digital oratory pitch videos}



\author[1]{Stephen J. Lind}%
\affil[1]{Affiliation not available}%


\vspace{-1em}



  
  \date{June 15, 2024}


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\sloppy


\section*{Abstract}

{\label{542152}}

\emph{Purpose}

This study investigates the comparative effectiveness of synthetic
AI-generated avatar videos against traditional organic human
spokesperson videos in entrepreneurial pitches. It aims to explore
whether synthetic avatars can effectively replace human spokespersons in
delivering persuasive and brand-positive messages in a crowdfunding
context.

\emph{Design/Methodology/Approach}

A controlled experimental design was employed, comparing identical
entrepreneurial pitches for a fictitious plant shop, delivered via both
AI-generated avatars and real human actors. Over 500 diverse
participants were randomly assigned to view one of these pitch versions.
They then evaluated the persuasiveness and overall brand impression of
the videos. The study also assessed whether viewers could discern
between synthetic and organic spokespersons.

\emph{Findings}

The findings reveal that synthetic avatars are competitive with human
videos in terms of persuasiveness and the ability to create a compelling
brand impression. However, when participants recognized the pitch as
AI-generated, there was a notable decrease in ratings across various
metrics. Despite this, over half of the viewers were unable to identify
the synthetic nature of the avatar, highlighting the sophistication of
current avatar technology.

\emph{Originality}

This research contributes novel insights into an emerging strategy in
entrepreneurial communication, highlighting a significant shift in the
landscape of business presentations and marketing. It challenges the
traditional reliance on human spokespersons in entrepreneurial pitches,
offering a fresh perspective on the potential of AI-generated avatars in
business communication.

\emph{Research Limitations/Implications}

The study's scope is limited to a single context and script, and thus
may not fully represent the range of potential scenarios in which
synthetic avatars are used. Further research could explore different
contexts and scripts to deepen the understanding of AI avatars'
effectiveness.

\emph{Practical Implications}

The study offers practical implications for entrepreneurs, suggesting
that AI-generated avatars can be a cost-effective and persuasive
alternative to human spokespersons. This could significantly impact
strategies for video content creation in crowdfunding and other
entrepreneurial endeavors.

\emph{Social Implications}

The increasing viability thus likely increased subsequent use of
synthetic avatars in business communication contexts poses important
social implications, including the potential reshaping of public
perception towards AI-generated content. The increased viability may
also have ethical and social impacts, as indicated by the viability
demonstrated in this study, from the increased risk of scams to the
potential to offset gender inequalities at certain entrepreneurial
communication stages.

\par\null

\textbf{Keywords:} pitch video, artificial intelligence, synthetic
media, human-centered, crowdfunding, digital oratory



\par\null

\section*{1. Introduction and Executive
Summary}

{\label{204928}}

Synthetic, AI-powered avatars emerge as a cost-effective and scalable
solution for entrepreneurs crafting professional pitch videos. The
competitive persuasive effectiveness and brand impact of these synthetic
avatars, when juxtaposed with traditional organic human spokespersons,
however, has not been demonstrated. This research delves into this very
comparison, scrutinizing the viability of avatar vs human spokesperson
pitch videos through a controlled experimental study.

The study tests identical entrepreneurial pitches for a fictitious plant
shop seeking investment. These pitches were crafted using both real
actors and state-of-the-art AI-generated avatars from Synthesia. A
diverse pool of over 500 participants engaged with one random version of
the pitch, after which each respondent evaluated the video's
persuasiveness and the overall impression of the brand it represented.

The findings reveal that synthetic avatars hold their ground against
human videos in terms of persuasiveness and the ability to forge a
compelling brand impression. This success is driven by the advanced
animation programming, allowing the avatars to bypass the risks of the
uncanny valley phenomenon. Over half of the viewers were unable to
identify their synthetic avatar as synthetic, underscoring the advanced
state of current avatar technology.

However, the study also uncovers a critical competitiveness distinction:
when participants perceived the pitch as AI-generated, there was a
significant decrease in ratings across metrics. This underscores the
persisting challenges in avatar technology, particularly in overcoming
the uncanny valley effect. Nevertheless, as technology advances,
propelled by massive investments and corporate buy-in, it is anticipated
that these negative perceptions will gradually diminish.

With continuous enhancements aimed at mitigating the uncanny valley
effect, and because of the time and cost savings the avatar platform
affords, synthetic avatars, offered by a variety of companies, are on
track to offer a formidable challenge to human spokespersons and a
potential asset to entrepreneurs seeking pitching advantages. This
research thus offers fresh and timely insights into an emerging strategy
in entrepreneurial communication, highlighting a significant shift in
the landscape of business presentations and marketing, and furthering
our understanding of the developing sub-genre of entrepreneurial digital
oratory.

\par\null

\section*{2. Literature Background and Hypothesis
Development}

{\label{119170}}

Video content serves as a medium to convey the creator's vision,
passion, and the essence of the project to potential backers. Using
video as a medium for pitching has been found to significantly increase
the chances of success for entrepreneurs seeking funding over other
static alternatives.

\par\null

\subsection*{\texorpdfstring{\emph{2.1 Video's ubiquitous power for the
entrepreneur}}{2.1 Video's ubiquitous power for the entrepreneur}}

{\label{570858}}

The use of video in crowdfunding campaigns has become an indispensable
tool for creators seeking to raise funds for their projects. Carradini
and Fleischmann's (2023) research underscores the significance of
multimedia elements in crowdfunding campaigns on platforms like
Kickstarter. Their study of over 327,000 campaign pages revealed that
successful campaigns frequently featured images, links, and most
notably, a project video. The presence of a project video, they
demonstrate, has a direct positive impact on the campaign's success
rate. These results are widely supported in the literature, indicating
that the use of video to deliver the pitch likely increases the
entrepreneur's chances of funding success by significant margins
(Courtney et al., 2017; Johan \& Zhang, 2020; X. Li et al., 2016;
Mollick, 2014).

This phenomenon is not new. Early in the modern online crowdfunding era,
Indiegogo (2011) reported that campaigns with videos are 2.4 times more
likely to appear on the homepage and raising 114\% more money than those
without a video. Kickstarter likewise suggested in 2012 that, ``projects
with videos succeed at a much higher rate than those without (50\% vs.
30\%)'' (O'Connell \& Kurtz, 2012). Just three years later, Yeh (Yeh,
2015) confirmed this new normal with a study showing that online
crowdfunding campaigns with video were found to have on average four
times the funding earnings total of those projects without video.

\par\null

\subsection*{\texorpdfstring{\emph{2.2 Common traits of effective videos
featuring entrepreneurial digital
oratory}}{2.2 Common traits of effective videos featuring entrepreneurial digital oratory}}

{\label{968209}}

Business pitches in the form of online video occupy a specific subgenre
of ``digital oratory,'' which as a genre ``can be described as
thesis-driven, vocal, embodied public address that is housed within
(online) new media platforms (and that ideally takes advantage of the
developing/flux-laden conventions that the online video context
provides)'' (Lind, 2012). What those conventions are, however, has
required significant recent theoretical explanation (Rossette-Crake,
2022). Entrepreneurial digital oratory forms a subgenre of digital
oratory that can be understood as those audio-video productions, housed
and disseminated online, featuring a business-minded speaker sharing
information with their audience for the purposes of explaining,
expanding, or otherwise advancing their entrepreneurial business
activities. Common examples include product and service overview videos
made by startups seeking investment funding, such as the pitch videos
posted to popular crowdfunding sites like Kickstarter and Indiegogo.
Understanding and abiding by the emergent conventions of the digital
oratory is essential for the entrepreneur hoping to have success within
this digital context. As described below, important analytical and
experimental studies have thus contributed, in recent years, significant
understandings of what conventions do and do not tend to produce
success.

Having a spokesperson in the video can critically increase the
likelihood of funding. The presence of the spokesperson, however, is a
complex feature that help or hurt the video's chances based on both the
editing and the performative delivery. Li et al (2021) find that the
spokesperson appearing early in the video increases success. The
spokesperson serves as the vehicle for trust and emotional resonance
(Jiang et al., 2019). Their vocal delivery is part of that resonance,
cultivating a sense of passion and preparedness that can correlate
positively with funding success (Allison et al., 2022; Davis et al.,
2017; J. (Jason) Li et al., 2017). Even negative facial expressions can
amplify the impact of critical proposition data, such as expressing the
pain point that the entrepreneurial endeavor solves, thereby increasing
funding success potential (Huang et al., 2023).

The spokesperson's persona must be presented in a strategically
advantageous way to positively impact the video. As Korzynski et al.
(2021) describe, sharing positive attributes about self, such as
experience and appearing hard-wording, can bolster the campaign's
persuasiveness. However, if their persona becomes menacing or wages in
intimidation, the pitch becomes less successful. Those findings are
consistent with Hou et al's (2019) findings that fear imagery is
negatively associated with entrepreneurial video success.

Demonstration of a business's product or service is likewise a unique
asset to video pitches, embracing a competitive advantage video has over
text. As Courtney et al. (2017), describe, multimedia campaigns allow
the entrepreneur to ``display a working model, prototype, or beta
versions of the product'' that demonstrate progress, credibility, and
viability to potential backers. As Yang et al. (2020) find, any
multimedia integrations must be designed in a way that complements
instead of overshadows the argumentative content of the video to be
effective.

\par\null

\subsection*{\texorpdfstring{\emph{2.3 Advent of high-fidelity video
avatars}}{2.3 Advent of high-fidelity video avatars}}

{\label{829388}}

Modern video creation underwent a renaissance in the early 2000s when
laptop and smartphones became ubiquitous, including native recording and
editing tools, supplemented by app store options, allowing novice users
readily create polished creative video content. Free access distribution
platforms like Vimeo and YouTube, combined with these creation tools,
allowed everyone from entrepreneurs to MNC CEOs alike to have a low-cost
video presence, even though formal training was not common (Lind, 2020).
In the post-COVID era, in which priorities shifted towards artificial
intelligence (AI) (McKendrick, 2021) and computing speed acceleration
curves sharpened (Henshall, 2023), modern video creation experienced a
second renaissance. AI-driven tools dramatically offered to reduce time
and energy costs while augmenting the creative skills of video creators
(Truly, 2023). Such tools range from automatically cutting dead air out
of clips to sophisticated color correction (Mileva, 2023).

The literature, however, has not kept pace with the AI-powered video
tools' development and their impacts on entrepreneurial ventures. Of
interest to this article is the rise of humanlike synthetic AI-powered
avatars available as video spokespeople, which offers a radical possible
shift in the landscape of entrepreneurial digital oratory. Programs like
Synthesia (Browne, 2023) and HeyGen (Schwaiger, 2023) are at the
forefront of this technology, offering polished avatars to users like
entrepreneurial pitch creators at a click of a button. These AI video
generators allow the user to create polished videos with professional,
synthetic human avatars, from scratch, by simply typing in a script. The
script not only gets converted into audio using sophisticated
text-to-speech voice modeling, it also animates the mouth and
expressions of the spokesperson avatar to make the avatar appear like a
real human that you recorded in a studio, performing your script. This
is accomplished using real footage of recorded actors/models that have
been intricately analyzed using the platforms' advanced software. When
combined with their user-friendly editing features and slick templates,
the results are a very low-cost and high-professionalism final video
product.

\par\null

\subsection*{\texorpdfstring{\emph{2.4 The uncanny valley
effect}}{2.4 The uncanny valley effect}}

{\label{133324}}

While demonstrating complex computing power, avatars and other synthetic
life has been plagued with the challenges of the so-called uncanny
valley -- the feeling of eeriness and wariness interactants experience
when confronting a synthetic being that is humanlike but not quite human
(Mori et al., 2012). Negative reactions to the pseudo-human range from
biological (MacDorman \& Entezari, 2015) to metaphysical (MacDorman,
2005; Tondu, 2015), psychological (Gray \& Wegner, 2012) to cultural
(MacDorman \& Ishiguro, 2006). Whether the uncanny valley effect
provokes an anthropocentrism that worries over threats to its
distinctiveness (Stein \& Ohler, 2017) or a concern for psychopathy and
malevolence in the machines (Tinwell et al., 2013), the literature
across domains consistently demonstrates interactants' wariness over
synthetic pseudohumans when they are recognized as such. One empirical
study, for example, tested film animation styles and found that
semirealistic animated films produce higher feelings of eeriness than
cartoonish or human films demonstrated that the use of avatars can
actually reduce the effectiveness of AI interaction (K\selectlanguage{ngerman}ätsyri et al.,
2017). Another study found that adding an avatar to chatbot interactions
produced higher deleterious uncanny valley sentiments and more intense
psychophysiological effects (Ciechanowski et al., 2019). Perhaps most
consistent with the aims of this study, and confirming previous research
on virtual faces (McDonnell \& Breidt, 2010), Weisman and Peña (2021)
experimentally found that avatar faces' evocation of the uncanny valley
effect mediates a decrease on affect-based trust, even with somewhat
crude faces by comparison even in just the few years' difference between
that study and this present study.

Yet the advancements in AI imaging and animation have advanced
considerably since most of the studies investigating the uncanny valley
were completed. AI image generators have now evaded detection and won
international art contests (Roose, 2022), and a majority of users no
longer recognize AI-generated faces when presented to them (Miller et
al., 2023). These advancements push back against the conventional
anti-AI uncanny valley wisdom and raise new questions for the persuasive
potential of the new wave of technology. A sister study, run roughly
concurrently with this study presented in this article, tested whether
or not the avatars in a program like Synthesia could provide discrete
knowledge to users in an onboarding context. While not set in a
persuasive context, the results are directly applicable to the project
here. In that study, not only did the avatars produce equitable learning
outcomes, but over half of the participants did not recognize the
AI-generated avatars as being synthetic computer constructs (Redacted
Author Citation).

\par\null

\subsection*{\texorpdfstring{\emph{2.5 Research question and
hypotheses:}}{2.5 Research question and hypotheses:}}

{\label{539329}}

Given the cost, scale, and skill-agnostic benefits, and despite the
wariness over an uncanny value risk, or perhaps because the technology
has advanced beyond immediate synthetic recognition, corporate America
readily adopted the high-fidelity results of these avatar programs, with
over half of Fortune 500 companies reporting use of the modern wave of
AI-animation-powered synthetic avatars for their communications, such as
internal learning and development (Bergen, 2023). The potential of this
technology for entrepreneurial use, however, is less clear and is
untested in the literature to-date. While the literature is clear on the
power of a human spokesperson in an entrepreneurial pitch video, whether
a synthetic avatar is a viable option is a question untested and
unanswered in the existing literature. A central question thus guides
this study: \emph{What is the comparative effectiveness of synthetic
avatar spokesperson entrepreneurial pitch videos compared to an organic
human spokesperson video?}

This study offers the following hypotheses to guide the methodology and
analysis:

\begin{itemize}
\tightlist
\item
  \emph{H1: A synthetic avatar pitch will be as persuasively effective a
  synonymous organic human spokesperson pitch.}
\item
  \emph{H2: A synthetic avatar will produce an equivalent brand
  impression as a synonymous organic human spokesperson pitch.}
\item
  \emph{H3: Less than half of viewers will be able to correctly identify
  their synthetic avatar as being AI/computer-generated.}
\end{itemize}

\par\null

\section*{3. Methodology}

{\label{520948}}

Video content serves as a medium to convey the creator's vision,
passion, and the essence of the project to potential backers. Using
video as a medium for pitching has been found to significantly increase
the chances of success for entrepreneurs seeking funding over other
static alternatives.

\par\null

\subsection*{\texorpdfstring{\emph{3.1 Video Artifact
Production}}{3.1 Video Artifact Production}}

{\label{465539}}

The study roughly took the form of an 2x2 test of four synonymous
videos. The videos were identical save for their spokesperson --
male/female and organic/synthetic.

Two of the videos were created using organic, human spokespersons. Two
professional actors were hired to pitch an investment opportunity for a
fictitious entrepreneur-owned plant store, Plant Haul, seeking to expand
beyond its initial location. One actor was male and the other female,
but they were otherwise cast to be within the same general demographic
categories (age, ethnicity, general bodily ability, and native spoken
language). Filming was completed in a professional studio with a neutral
backdrop and with the assistance of camera and sound technicians. The
actors spoke from a teleprompter with a script written to be generally
persuasive but not overwhelmingly so, so as to allow room for the
spokesperson to matter. The actors were given wardrobe to match the
wardrobe of the Synthesia avatars and were directed to restrict hand
gestures, given that the avatars could not do so at the time of filming.

Clips from the actors' best takes were edited in with B-roll and titles
(on-screen text), in line with modern professional video conventions via
professional editing software.

Two videos were then created using Synthesia's synthetic, AI-powered
avatar program. The avatars were chosen to match the general
demographics (sex, age, general bodily ability, and ethnicity) and
American English voices were chosen from those provided in the Synthesia
system. The same script that the organic spokespersons used was inputted
into system, which generated both the conversational voice performance
and animated the mouth and face of the humanlike avatar. The B-roll and
text were edited in within Synthesia's editing platform to be identical
to the organic videos.

\par\null

\subsection*{\texorpdfstring{\emph{3.2 Participant
Sample}}{3.2 Participant Sample}}

{\label{948948}}

Participants were recruited through an online survey audience portal
from a population of working professionals across the U.S. Age and
gender were balanced to increase generalizability. A series of quality
control questions were included in the survey to ensure that active,
engaged participant data was analyzed. For example, the first question
instructed ``There is a code above your video. Please carefully select
that code from the list below.'' Survey responses that included an
incorrect response were discarded.

The sample totaled 561 participants, once entries that failed quality
control were eliminated.

\par\null

\subsection*{\texorpdfstring{\emph{3.3 Survey Procedure and
Measures}}{3.3 Survey Procedure and Measures}}

{\label{510101}}

Participants were randomly assigned to view one of the four videos.
Roughly half saw an organic spokesperson and half a synthetic
spokesperson (286 organic and 275 synthetic). Participants were not
informed that the video may be AI-generated, to avoid biasing
impressions and in order to test H3. IRB approval was granted with this
understanding, due to the minimal realistic harm such a deception would
produce. Instead, participants were asked to give their feedback under
the guise that they were viewing a possible pitch video for a business
expansion opportunity, without being told that such venture was
fictitious. Following the viewing, participants answered a series of
series of survey questions designed to assess various dimensions of the
video's impact, including persuasive effectiveness and brand impression.
Answer options were given on a five-point Likert scale in ascending
value from Strongly Disagree to Strongly Agree.

Video effectiveness (H1) was measured by the composite average of three
questions. While argumentation is complex, three foundational
characteristics were drawn from the literature to provide a composite
view of how well the video pitch effectively could move the viewer.
After viewing the Plant Haul expansion pitch video, participants rated
how strongly they agreed that the pitch was understandable (Clark, 2008;
Hoffjann, 2022) and memorable (Duarte, 2012). Participants then directly
whether or not they found the proposal convincing.

Brand impression (H2) was likewise measured here as a composite score of
three characteristics. Three measures salient in the brand image
literature were likewise measured in this study in order to produce a
composite brand image (H2) rating. These include how competent (Aaker et
al., 2010), trustworthy (Chaudhuri \& Holbrook, 2001), and likeable
(Nguyen et al., 2013) the brand is perceived to be by respondents. After
viewing the video, participants rated how strongly they agreed that the
fictitious business, Plant Haul, was competent, trustworthy, and
likable.

Participants were then offered the chance to provide open-ended
responses on the strengths and weaknesses of the pitch.

After rating the video, participants were asked to note whether the
video they viewed was an organic human spokesperson video or an
AI-generated avatar video (H3). The survey also collected demographic
data, providing an opportunity for a more nuanced analysis of the impact
across different viewer segments.

\section*{}

{\label{825188}}

\section*{4. Results}

{\label{825188}}

\subsection*{\texorpdfstring{\emph{4.1 Persuasive
Effectiveness}}{4.1 Persuasive Effectiveness}}

{\label{952517}}

On average, synthetic avatar persuasive pitch videos in this study were
equally as persuasively effective as their organic human spokesperson
counterparts. Based on a composite average of three effectiveness
questions, H1 was confirmed. The p-value was well above the typically
required limit for statistical significance (see Table 1), suggesting a
strong persuasive viability for use of synthetic avatars when variables
beyond the limits of the avatar programs are constrained.

As intended, the persuasive pitch was generally but not overwhelmingly
persuasive to the viewer, scoring a 3.6 out of 5.0 in overall
persuasiveness. The highest score was achieved in how understandable the
video was, nearly a 4 out 5, and the lowest in the direct convincing
score, at a 3.4. This suggests that the experimental design did create
room for the spokesperson to have an impact.

\par\null

\subsubsection*{\texorpdfstring{Table 1. Effectiveness Ratings: Overall
effectiveness composite score and individual scores for 1-5 point Likert
scale questions rating how strongly the participants agreed that the
video was memorable, understandable, and convincing. \emph{(* if p-value
denotes statistical
significance)}}{Table 1. Effectiveness Ratings: Overall effectiveness composite score and individual scores for 1-5 point Likert scale questions rating how strongly the participants agreed that the video was memorable, understandable, and convincing. (* if p-value denotes statistical significance)}}

{\label{721265}}\selectlanguage{english}
\begin{longtable}[]{@{}llll@{}}
\toprule
QUESTION & ORGANIC VIDEO & SYNTHETIC VIDEO & P-VALUE\tabularnewline
\midrule
\endhead
Overall Effectiveness & \textbf{3.64} & \textbf{3.61} &
\textbf{0.723}\tabularnewline
----- Memorable & 3.50 & 3.44 & 0.505\tabularnewline
----- Understandable & 3.95 & 3.96 & 0.822\tabularnewline
----- Convincing & 3.46 & 3.43 & 0.706\tabularnewline
\bottomrule
\end{longtable}

However, the persuasive effectiveness significantly decreased when
respondents perceived their video spokesperson as being AI-generated.
Participants were not initially made aware that the spokesperson may be
synthetic, and were only cued to the possibility in one of the last
questions. When they perceived the spokesperson as being AI-generated,
respondents on average found the pitch to be significantly less
effective across all categories -- memorable, understandable, and
convincing, as well as in the composite overall effectiveness average
(3.75 vs 3.47), which had a p-value well below the typical threshold
(see Table 2). This complicates the findings on H1 and suggests that in
some contexts, such as a small viewership number or a subpar avatar
animating program, synthetic avatar videos may be negatively related to
the persuasive force of the entrepreneur's pitch, thus disproving H1.

\par\null

\subsubsection*{Table 2. Effectiveness Ratings based on AI Perception:
Overall effectiveness composite score and individual scores for 1-5
point Likert scale questions, categorized by whether or not the
participant perceived their spokesperson to be organic or synthetic. (*
if p-value denotes statistical
significance)}

{\label{314935}}\selectlanguage{english}
\begin{longtable}[]{@{}llll@{}}
\toprule
QUESTION & PERCEIVED ORGANIC & PERCEIVED SYNTHETIC &
P-VALUE\tabularnewline
\midrule
\endhead
Overall Effectiveness & \textbf{3.75} & \textbf{3.47} &
\textbf{0.0004*}\tabularnewline
----- Memorable & 3.63 & 3.27 & 0.0004*\tabularnewline
----- Understandable & 4.05 & 3.88 & 0.0371*\tabularnewline
----- Convincing & 3.59 & 3.25 & 0.0011*\tabularnewline
\bottomrule
\end{longtable}

\par\null

\subsection*{\texorpdfstring{\emph{4.2 Brand
Impression}}{4.2 Brand Impression}}

{\label{176277}}

When considering all 561 participants' feedback, the synthetic avatar
videos produced equivalent overall brand impression ratings (see Table
3). The scores in each of the three subcategories had differences that
were not statistically significant, with p-values well above the typical
significance threshold. Likewise, the composite brand impression score
was equivalent (3.80 vs 3.76). Across the brand impression ratings, H2
was proven true.

\subsubsection*{}

{\label{352643}}

\subsubsection*{Table 3. Brand Impression Ratings: Overall brand
impression composite score and individual scores for 1-5 point Likert
scale questions rating how strongly the participants agreed that the
fictitious business, Plant Haul, seemed competent, trustworthy, and
likeable. (* if p-value denotes statistical
significance)}

{\label{352643}}\selectlanguage{english}
\begin{longtable}[]{@{}llll@{}}
\toprule
QUESTION & ORGANIC VIDEO & SYNTHETIC VIDEO & P-VALUE\tabularnewline
\midrule
\endhead
Brand Impression & \textbf{3.80} & \textbf{3.76} &
\textbf{0.612}\tabularnewline
----- Competent & 3.78 & 3.81 & 0.601\tabularnewline
----- Trustworthy & 3.75 & 3.68 & 0.334\tabularnewline
----- Likeable & 3.86 & 3.79 & 0.366\tabularnewline
\bottomrule
\end{longtable}

When segmented by perceived spokesperson type, however, the difference
was significant (see Table 4). Participants who perceived their
spokesperson to be synthetic also rated the brand impression
significantly lower across all subcategories, which also resulted in a
significantly lower overall brand impression score. Perception of the
spokesperson as synthetic was thus negatively related to overall brand
impression, thus disproving H2 in that context.

\par\null

\subsubsection*{Table 4. Brand Impression Ratings based on AI Perception:
Overall brand impression composite score and individual scores for 1-5
point Likert scale questions, categorized by whether or not the
participant perceived their spokesperson to be organic or synthetic. (*
if p-value denotes statistical
significance)}

{\label{905486}}\selectlanguage{english}
\begin{longtable}[]{@{}llll@{}}
\toprule
QUESTION & PERCEIVED ORGANIC & PERCEIVED SYNTHETIC &
P-VALUE\tabularnewline
\midrule
\endhead
Brand Impression & \textbf{3.93} & \textbf{3.58} &
\textbf{0.000006*}\tabularnewline
----- Competent & 3.95 & 3.59 & 0.000029*\tabularnewline
----- Trustworthy & 3.86 & 3.55 & 0.000449*\tabularnewline
----- Likeable & 3.98 & 3.59 & 0.000010*\tabularnewline
\bottomrule
\end{longtable}

\par\null

\subsection*{\texorpdfstring{\emph{4.3 Accurate Perception of AI
Avatar}}{4.3 Accurate Perception of AI Avatar}}

{\label{780901}}

The Synthesia avatar program produced highly effective simulacra of
human presenters. Half of respondents (50\%) incorrectly identified
their synthetic avatar as being an organic human spokesperson, with yet
another 11 percent unsure. Only 38 percent of respondents correctly
identified the avatar as synthetic (see Table 5). H3 was proven true.

While a sizeable number of respondents also either incorrectly
identified or were unsure that their human spokesperson was an organic
spokesperson, a portion of that mistaken attribution may be attributed
to skepticism provoked by the question itself. Participants were not
informed that their video may be AI-generated until the question at the
end of the survey implicitly suggested it. Some may, at that time, have
retroactively been suspicious of their human spokesperson, accounting
for some of the incorrectness. That same suspicion may have actually
inflated correct answers for synthetic avatar videos, potentially making
the effectiveness of the dupe even great.

\subsubsection*{}

{\label{161519}}

\subsubsection*{Table 5. Total number of respondents who correctly
perceived their spokesperson to be an actual organic human speaking or a
synthetic, AI-generated avatar
speaking.}

{\label{161519}}\selectlanguage{english}
\begin{longtable}[]{@{}llll@{}}
\toprule
VIDEO TYPE & CORRECT PERCEIVED & INCORRECTLY PERCEIVED &
UNSURE\tabularnewline
\midrule
\endhead
Organic Video & 69.23\% & 14.33\% & 16.43\%\tabularnewline
Synthetic Video & 38.18\% & 50.18\% & 11.64\%\tabularnewline
\bottomrule
\end{longtable}

\par\null

\subsection*{\texorpdfstring{\emph{4.4 Open-ended
Assessment}}{4.4 Open-ended Assessment}}

{\label{544316}}

Overall analysis revealed consistent feedback, both positive and
negative in sentiment, across organic and synthetic video types,
including expected critiques centered on both the argumentative
rationale for the business proposal and the spokesperson's delivery,
suggesting that viewers were generally impressed and put off by the same
overall features and in with generally the same effect across video
types. While criticisms ranged from business specific questions to video
editing choices, these criticisms were applicable to all videos, given
that they were identical in content and form, save for the spokesperson
present.

However, another primary theme emerged in textual analysis of the
open-ended responses. Isolating the open-ended answers to the weakness
questions, partitioned to only those answers from respondents who rated
the effectiveness of brand-image below the general average, produced
useful unique additional data that identifies spokesperson's performed,
delivered persona as a critical factor in pitch success.

More than 1 in 5 (22\%) of respondents with sub-average ratings
commented in the open-ended weakness question that the spokesperson was
a weakness of the video. Over half of those responses (60\%) explicitly
mentioned the synthetic nature of the avatar with comments such as
``felt like a computer talking'' and ``She was more like an AI robot''
and ``It felt robotic or AI in sound and the man seemed very
disingenuous.'' The other 40 percent commented more broadly on a flat,
disengaged delivery with comments like ``weird voice'' and ``narrator
was monotone and boring'' and ``the announcer was stiff.'' The explicit
focus on the spokesperson in these sub-average open-ended responses
suggests that the synthetic avatar as spokesperson is a mediating
variable.

\subsection*{}

{\label{206252}}

\subsection*{\texorpdfstring{\emph{4.5 Demographic
Variables}}{4.5 Demographic Variables}}

{\label{206252}}

While demographics did play a role in reactions to the pitch videos,
they did so across both the organic and synthetic categories.

That is to say, the data suggests that demographic categories observed
for, including age, household income, and technology adoption style did
yield significantly different results across effectiveness and brand
impression categories. Different age groups, for example, perceive the
effectiveness of the videos differently. Notably, older age groups,
particularly those in the 45 to 60 range, tend to give higher
effectiveness and brand impression ratings. Similarly, household income
significantly affects the overall effectiveness ratings, with a
strikingly low p-value of 8.15e-09. Higher income groups tend to rate
the videos more favorably in both effectiveness and brand impression
categories, possibly due to differences in educational background,
exposure to similar content, or even increasing opportunities to
consider brand investment potentials as their own income growth has
opened more of those opportunities.

The analysis of the impact of technology adoption levels on overall
effectiveness ratings reveals a statistically significant difference, as
indicated by a p-value of 3.55e-05. This finding suggests that
individuals' attitudes and behaviors towards technology adoption are
closely linked to how they perceive and rate the effectiveness of the
videos. Those who identify as ''Innovators'' or ''Early Adopters'' tend
to rate the videos more favorably, reflecting a potential correlation
between a propensity for early technology adoption and a positive
reception to the content of the videos. There was not a statistical
significance across adoption categories relative to brand impression,
however. This suggests that the medium of video had little, if nothing,
to do with this correlation. Instead, it is conceivable that this
reflects a broader correlation amongst the attitudes needed to adopt a
new piece of technology before its fully vetted by the public and the
attitudes needed to adopt a new business proposal before it has proven
fully viable.

In contrast, gender does not show a statistically significant impact on
the overall effectiveness ratings, with a p-value of 0.117, but there is
a marginal difference in brand impression with a p-value of 0.0460. Male
respondents, on average, rated the brand's competence, trustworthiness,
and likeability slightly higher than female respondents.

However, while these findings are informative and may prove useful for
future study, the data collected in this study indicates that while
these demographic factors play a role in the favorability of the video's
pitch, they do so uniformly across organic and synthetic videos. The
same impact by age, income, and technology adoption persists regardless
of which spokesperson was seen. While income level increase was
correlated with an increased rating, for example, that increase happened
for both organic and synthetic spokesperson pitches. This suggests that
for synthetic avatars are not uniquely perceived differently based on
the participant's age, gender, income status, or tech adoption
tendencies.

The gender of the spokesperson/avatar did not have a statistically
significant impact on any of the composite averages or individual
questions asked (see Table 6). This was true for the all respondents,
for just those viewing synthetic videos, and for just those viewing
organic videos. This suggests that future studies may achieve equivalent
results with a 1x1 method instead of a 2x2 method.

\subsubsection*{Table 6. Average ratings for effectiveness and brand
impression scores, based on a 1-5 Likert scale, subdivided by video type
and spokesperson gender. (* if p-value denotes statistical
significance)}

{\label{706191}}\selectlanguage{english}
\begin{longtable}[]{@{}lllllll@{}}
\toprule
CATEGORY & SYNTHETIC MALE & SYNTHETIC FEMALE & SYNTHETIC P-VALUE &
ORGANIC MALE & ORGANIC FEMALE & ORGANIC P-VALUE\tabularnewline
\midrule
\endhead
Overall Effectiveness & \textbf{3.65} & \textbf{3.56} & \textbf{0.358} &
\textbf{3.60} & \textbf{3.67} & \textbf{0.449}\tabularnewline
----- Memorable & 3.55 & 3.32 & 0.065 & 3.45 & 3.54 &
0.433\tabularnewline
----- Understandable & 3.96 & 3.97 & 0.945 & 3.89 & 4.01 &
0.238\tabularnewline
----- Convincing & 3.45 & 3.40 & 0.700 & 3.45 & 3.46 &
0.945\tabularnewline
Overall Brand Impression & \textbf{3.71} & \textbf{3.82} &
\textbf{0.271} & \textbf{3.76} & \textbf{3.83} &
\textbf{0.451}\tabularnewline
----- Competent & 3.78 & 3.85 & 0.496 & 3.74 & 3.81 &
0.464\tabularnewline
----- Trustworthy & 3.63 & 3.74 & 0.326 & 3.73 & 3.77 &
0.676\tabularnewline
----- Likeable & 3.73 & 3.87 & 0.218 & 3.82 & 3.90 &
0.377\tabularnewline
\bottomrule
\end{longtable}

\par\null

\section*{5. Discussion}

{\label{822590}}

This study contributes a new finding to our understanding of
entrepreneurial pitching strategy. That is, this study demonstrates that
the current level of AI-generated avatar technology can be a
competitively and equitably viable video spokesperson consideration for
entrepreneurs. This is a valuable revelation, given the importance of
video for entrepreneurial outreach like on crowdfunding platforms
(Carradini \& Fleischmann, 2023; Courtney et al., 2017; Johan \& Zhang,
2020; X. Li et al., 2016; Mollick, 2014). This study also thus adds to
our understanding of digital oratory's evolution, particularly as it
relates to the subgenre of entrepreneurial digital oratory.

At a fundamental level, this study confirms the implicitly and
explicitly held understanding of digital oratory -- that delivery and
narrator persona, even in the digital context, matter even beyond the
technical or logical argumentative content. As research has indicated
prior to this study and then confirmed through this study's variables,
the entrepreneurial spokesperson can absolutely have an impact on the
success or failure of a pitch. This study advances our general
understanding that in digital oratory, the orator matters, and places
and confirming that understanding squarely within a commercial context.
The prudent entrepreneur, then, would ensure that the nonverbal delivery
in their digital oratory-based proposal is performed in such a way that
it serves as a valuable vehicle for gaining engagement, buy-in, and
goodwill. What that data here suggests is that AI-generated avatars are
now worthy of consideration for the entrepreneur seeking to meet those
goals.

Because of the viability of avatars demonstrated here, our understanding
of digital oratory as a genre of speaking, for private, public, and
commercial purposes, must now include a further complication --
awareness that this form of ``embodied'' communication can now
effectively be organic or synthetic. While extensive exploration have
confirmed the limitations synthetic characters have due to the uncanny
valley phenomenon (Gray \& Wegner, 2012; MacDorman \& Entezari, 2015;
Tinwell et al., 2013; Tondu, 2015), this new era of avatars appear to
have moved beyond that limiting feature for the majority of respondents.

The increased effectiveness of synthetic speakers may have been achieved
by the type of avatars used in this system, fashioned off from live
human video models instead of pure computer-generated animation. That
situates the avatar much closer already to the expected narrators in the
broader, accepted digital oratory genre. The AI-powered dynamism coded
into the avatar's seemingly authentic delivery style then allows it to
be believable for the majority of viewers, especially those unaware of
the backend reality. That synthetic delivery prowess is what appears to
allow this class of synthetic spokespersons to be equally as
persuasively successful. This understanding is consistent with the
existing literature on the impact of persona and delivery in
entrepreneurial pitch success (Allison et al., 2022; Davis et al., 2017;
Jiang et al., 2019; Y. Li et al., 2021).

Of course, the results here to not offer a blanket endorsement of
avatars as human spokesperson replacements. Quite the opposite. The very
design of the experiment, controlling the setting and gestures of the
live actors to match the digital puppets' limited options, points to the
freedom and flexibility that organic human actors provide. However, the
time and cost saving, along with the professional aesthetic so easily
achieved, will have to factor against those creative freedoms. With the
avatar programs also allowing users to upload video of themselves to
create their own bespoke custom avatars, even the positive
self-promotion tactics previously found valuable (Korzynski et al.,
2021) are an option now in the digital context, further complicating the
entrepreneur's decision calculus.

Entrepreneurs considering an avatar speaking for their endeavor should
also carefully weigh the remaining risks of the uncanny valley, even if
just caused by poor execution in this evolving technology. When the
synthetic nature of the digital spokesperson was identified, the
respondent ratings were less positive. In the case where the viewership
was expected to be skeptical, when the creator was not familiar with the
technology, or when there was a small sample size of viewers, the risks
of a diminished score may rise beyond the liking of an entrepreneur.

This is not to say that the risks of avatar-awareness negate the value
of the AI avatars. The data here suggests otherwise quite directly as
well. Not only is the fake highly effective, with most respondents not
identifying the synthetic avatar as such, the overall average was
equally as high, regardless of which video type was viewed. Thus, for an
entrepreneur or other persuasively minded creator, as more and more
viewers see their pitch, the likelihood increases that they too will not
have anomalous negative reactions, but instead will also produce the
same equivalent results. In the context of crowdfunding, for example,
when the viewership can be in the tens of thousands to even millions,
the data here suggest that there is no statistical risk in using an AI
avatar. Even further, for those wishing to reduce risks caused by ethnic
or gender inequalities in entrepreneurship(Chang \& Xu, 2023), the
synthetic spokesperson of a varying demographic may be an appealing,
even if ethically complicated, consideration.

Even further, because the delivery of the avatar is already highly
effective at fooling more than half of viewers, and because significant
financial investments and user data is being collected in massive
quantities, the coding needed to further refine the animation is almost
guaranteed to be provided to the companies creating this software, like
Synthesia and its competitors. This all but guarantees that the risks
directly associated with identifiability in the avatar will continue to
decrease.

It should also be noted that this study was also based on a single
context and single script. The skilled pitch writer has many other
alternative ways of creating value or even additional risk even with a
constrained use of the avatars. As the landscape of digital oratory
undergoes its current seismic shifts, the conventions of the genre will
thus change as new rhetorical and videographic approaches are tested and
normed. For example, it may or may not be advantageous to transparently
admit that the spokesperson is an AI avatar. Future studies, as well as
industry use-case exemplars, will help scholars and practitioners better
understand how these new contextual best practices develop.

\section*{}

{\label{480310}}

\section*{6. Conclusion}

{\label{480310}}

This study reveals the viability of synthetic AI-generated avatars as
spokespersons in entrepreneurial digital oratory pitch videos. The
findings demonstrate that these avatars can match the persuasive
effectiveness and brand impression of human spokespersons, suggesting a
paradigm shift in entrepreneurial communication strategies. However, the
perception of the avatar's synthetic nature remains a critical factor,
tied to audience reception. As technology improves, reducing the uncanny
valley effect, synthetic avatars are poised to become increasingly
integral in entrepreneurial ventures. Future research should explore
diverse contexts to further understand the evolving dynamics of digital
oratory, synthetic and organic, in entrepreneurship. This study's
insights offer a significant contribution to entrepreneurial strategies
in the age of advancing AI and digital communication technologies.

\par\null



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