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The complex phenomenon of AI influencers, examining their rise as digital celebrities that mimic human personalities to engage audiences and promote products. It details the technology behind their creation, from CGI to generative AI, and the economic incentives driving their widespread adoption by brands seeking control and cost-effectiveness. Furthermore, the text analyzes the psychological reasons for human connection with these artificial entities, particularly through parasocial relationships, while also addressing significant ethical and societal concerns such as deception, unrealistic beauty standards, cultural appropriation, and data privacy. Finally, it discusses the emerging regulatory landscape and proposes a framework for ethical governance involving creators, brands, and social media platforms.