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Avataar releases new tool to create AI-generated videos for products | TechCrunch

Jan 06, 2025 - techcrunch.com
Generative AI models have advanced to create passable videos from single images or short sentences, with companies like Avataar leveraging this technology to produce product videos from links. Avataar, backed by Peak XV and Tiger Global, launched a tool called Velocity, which automates video creation for products that might not typically receive a video budget. Founded by Sravanth Aluru in 2015, Avataar initially focused on interactive experiences and 3D models for e-commerce but has shifted towards AI-driven video creation. The company claims that while 3D models have higher conversion rates, videos engage more people, making them effective at scale. Avataar's tool is already used by brands like HP and Victoria's Secret, aiming to enhance customer experience and conversion rates through informative videos.

Avataar's approach differentiates itself through extensive data collection on products via 3D rendering, ensuring high-quality video presentations without glitches. The company emphasizes storytelling to drive purchases and has implemented safeguards against inaccuracies in video outputs. Investor Amir Konigsberg notes the potential for AI-generated videos in e-commerce, highlighting the need for uniqueness and quality at scale. He suggests that recent advancements in AI models could make these tools viable for widespread adoption. Avataar also offers an API for seamless integration into e-commerce platforms, aiming to automate video creation for entire product catalogs.

Key takeaways:

  • Avataar has launched a tool called Velocity that creates product videos directly from product links, aiming to make video creation more accessible and cost-effective for brands.
  • The company has started testing its fully automated Velocity tool with major brands like HP, Victoria’s Secret, and Lowe’s, focusing on creating videos for products that typically wouldn't receive a video creation budget.
  • Avataar's models are designed to understand different product categories and attributes, ensuring high-quality video presentations that drive customer engagement and conversions.
  • Investor Amir Konigsberg highlights the opportunity for AI-generated videos in e-commerce, noting the importance of uniqueness, consistency, and adherence to standards in video creation.
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