What's key here is, first, there's a lot of video of Marilyn Monroe available to help with the illusion, and second, "Digital Marilyn is able to read users' emotions and respond accordingly via Soul Machine's proprietary camera and microphone technology." It's only chatGPT 3.5 so the emotion detection is probably pretty clunky, but I would imagine the result is still rather uncanny. I can easily imagine a service like MasterClass, which features famous people teaching courses, adding avatars like this to its lineup. Via Fredrik Graver.
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