Immersive 3D and generative AI are shaping the digital future
Younger consumers embrace a world where physical and digital experiences blend in engaging and intuitive ways.
Jana Arbanas
Paul H. Silverglate
Susanne Hupfer
Jeff Loucks
Prashant Raman
Michael Steinhart
Most people already experience a sense of immersion in music, TV, and film. And many—especially younger generations—interact with rich 3D experiences through video games that can transport players into other worlds and bring them together in shared virtual spaces. Whether people do so through screens (as most do) or with virtual reality headsets (as some do), such 3D immersive experiences are becoming so popular that they’re reshaping the landscape of media and entertainment.1
As these experiences become grander and more hyperrealistic, and as they bring together hyperscale audiences, consumers may require greater bandwidth to support them and innovative new devices to help augment their experiences. This evolution of immersion and virtual socialization is also being enabled by generative AI capabilities that can amplify game development while potentially generating personalized, on-demand immersive experiences. This emerging nexus of 3D immersion, interaction, socialization, and personalization is often called “the metaverse.”
Some of the largest tech companies are investing heavily in next-generation technologies to make these experiences possible.2 While narrative-based and competitive games have dominated 3D immersive interaction, many more kinds of experiences could appeal to more people and add greater value beyond entertainment. We asked our respondents to gauge their level of interest in having a range of immersive 3D virtual experiences: learning by viewing or interacting with 3D objects or representations (such as a 3D art museum or car engine); traveling to places of interest virtually; meeting with friends, family, colleagues, or medical professionals in a 3D space where they can see one another’s gestures and expressions (for example, an examining room with 3D scans, an office space, or a virtual version of the old family homestead); attending 3D virtual entertainment events; and shopping in 3D stores. Many Gen Z and Millennial respondents are more willing to explore this vision of the future, while older generations remain less sure (figure 10.1).
Generative AI is also poised to shape the future of digital life.3 As much as consumers love their devices, they can also be frustrated when managing them becomes a complex chore (see the chapter entitled Digital life often delivers daily benefits but can also fuel tech fatigue and well-being worries). To realize the full promise of connected devices, they likely need to become more intelligent, personalized, and easy to manage.
One area where generative AI may be able to alleviate some of the woes is with chatbots.4 Instead of learning the intricacies and idiosyncrasies of managing each digital device, imagine asking an AI chatbot for help—or instructing the chatbot to handle administrative tasks for you. Even better, imagine using natural language to ask a smart home system (such as a speaker or hub) to get all your devices working together seamlessly, or to get your home ready for a certain situation (for example: “we’re going on vacation tomorrow—adjust all systems and set up our security”). Generative AI may well bring greater personalization to digital devices and make interacting with them more collaborative and intuitive.5 In time, AI chatbots may even be capable of providing companionship, empathy, and trusted advice—lending more of a human element to heavily digital lives.6 AI could also help people spend less time on devices, tracking digital use and suggesting times and ways to step away from screens.
Some companies are already experimenting with bringing generative AI conversational capabilities into consumer devices, making voice assistants smarter.7 Others are working on bringing AI to home automation systems.8 From our survey, it appears that many consumers will welcome new kinds of collaboration with generative AI. Seventeen percent of our survey respondents have already experimented with generative AI or used it for projects, and of these, seven in 10 intend to keep using it. Again, we see distinctive differences by generation: Almost a third (31%) of Gen Z respondents report having used or experimented with generative AI, versus 20% of Millennials, and only 9% of older generations.
One important consideration around generative AI and consumer devices is likely to be how to ensure data privacy and security. As we noted in Data privacy and security worries are on the rise, while trust is down, only half of respondents feel that the benefits they get from online services outweigh their data privacy concerns. As AI-equipped devices collect information, tracking and learning user behaviors and preferences, concerns about data protection are likely to grow. Tech companies should commit to addressing these concerns from the outset, as part of their product and service design process. It’s conceivable that generative AI could be used to tailor privacy and data sharing to suit each person’s comfort level. But trust is often a negotiation: If the benefits are clear enough to users—and the risks low enough—they may be willing to share the kinds of data needed to power the next generation of intelligent devices.
We anticipate that consumers will continue seeking the optimal balance of ease, functionality, and connection, favoring devices and solutions that reduce headaches and deliver seamless experiences. Generative AI may have the potential to help users achieve a better balance between their physical and digital lives while empowering a new era of truly intelligent and personalized ecosystems of connected devices.