InGen, the maker of an artificial intelligence avatar tool, is raising new funding at a $1 billion valuation, just as the startup’s technology is being used to create virtual stand-ins for chief executives at major tech companies. This development comes on the heels of a striking trend in corporate communication: CEOs of prominent tech firms are beginning to deploy AI avatars to represent them during high-stakes events like quarterly earnings calls. This week, both Zoom CEO Eric Yuan and Klarna CEO Sebastian Siemiatkowski made headlines by using AI-generated versions of themselves to deliver key messages, signaling a potential shift in how business leaders engage with investors and the public, as reported by TechCrunch.

The phenomenon kicked off earlier this week when Klarna, a leading buy-now-pay-later service, released a video featuring an AI avatar of Siemiatkowski summarizing the company’s earnings for the first quarter of 2025. The digital clone, which mirrored the CEO’s likeness and tone, announced four consecutive profitable quarters with a polished delivery that required no camera crew or extensive preparation. Shortly after, Zoom’s Eric Yuan followed suit, using an AI avatar for his initial comments during the company’s quarterly earnings call, a move that underscored the growing integration of AI in corporate settings, according to Business Today.

A New Frontier in Corporate Communication

This adoption of AI avatars is more than a novelty; it represents a strategic pivot for executives who are increasingly pressed for time and seeking innovative ways to maintain a personal connection with stakeholders. By leveraging AI, CEOs can delegate routine or scripted portions of their public appearances to digital stand-ins, freeing them to focus on strategic decision-making. Tech Funding News suggests this could become an industry trend, as the technology not only saves time but also ensures consistency in messaging through pre-approved scripts delivered with uncanny realism.

However, the implications of this technology extend beyond efficiency. The use of AI avatars raises questions about authenticity and trust in corporate communications. While the avatars are designed to replicate the CEOs’ voices and mannerisms, some investors and analysts have expressed concern over the lack of genuine human interaction during these critical updates. The Verge notes that while the technology is impressive, it may risk alienating stakeholders who value the personal touch of a live presentation, even if delivered via video conferencing platforms like Zoom itself.

Balancing Innovation with Human Connection

As companies like Klarna and Zoom pioneer this approach, the tech behind these avatars—developed by firms like HeyGen—is rapidly evolving to address such concerns. Advanced algorithms ensure that the avatars can respond to basic queries in real-time, though they are currently limited to scripted content for earnings calls. Still, the potential for fully interactive AI representatives looms on the horizon, promising a future where digital clones could handle a broader range of executive functions.

Critics, however, caution against over-reliance on such tools. The human element in leadership—empathy, spontaneity, and accountability—cannot be fully replicated by even the most sophisticated AI, as highlighted in discussions on platforms like LinkedIn. For now, both Yuan and Siemiatkowski have used their avatars only for initial remarks or summaries, stepping in personally for Q&A sessions to maintain that vital human connection.

The Road Ahead for AI in the C-Suite

The trend of AI avatars in corporate settings is still in its infancy, but its rapid adoption by industry leaders suggests a transformative potential. As reported by TechCrunch, the technology could redefine how executives manage their public personas, offering a scalable solution for global companies with diverse audiences. Yet, the balance between innovation and authenticity remains a delicate one, and the tech industry will be watching closely to see if this experiment becomes a staple of corporate life or a fleeting gimmick.

In the meantime, HeyGen’s billion-dollar valuation reflects investor confidence in the future of AI-driven communication tools. Whether this marks the dawn of a new era or a cautionary tale of technology overreach, one thing is clear: the C-suite is no longer just a physical space—it’s becoming a digital frontier.