This is shockingly realistic (and perhaps a bit disturbing that a virtual model can generate so much interest). How do people create such virtual models that look so accurate and human-like?
Use a real person, tell everyone she's virtual to protect her privacy.
Genius!
They claim AI, but it's probably just 3d modeling and texturing. Possibly based on a real person - see also characters like Aloy, or the ones from Death Stranding. Or the attempts in recent Star Wars media to bring back deceased actors or make them younger.
Body is real. The face is synthetic and augmented onto the actress.