AI casts a shadow over the Metaverse as it silently expands and makes an impact | Bill McLoughlin

Just a couple of years ago, the Metaverse was hailed as the next big thing in technology. Time magazine featured it on its cover, declaring that “The Next Digital Era Will Change Everything.”

However, in the present scenario, Artificial Intelligence seems to be the digital technology poised to make the most impact, at least in the near future. The ability to create deep fake videos of celebrities and use chatbots as ghost writers is more captivating to the masses than a concept associated with outer space by those over 30.

For tech enthusiasts seeking quick returns and a wide range of applications, investing in AI seems to be a more attractive option in the short term.

Consequently, the Metaverse has taken a back seat, primarily appealing to teenagers, young adults, and gamers. With a few forward-thinking companies realizing that major social and cultural changes are propelled by the younger generation rather than their elders.

Can you picture a world without popular platforms like Facebook, Snapchat, Instagram, and TikTok? All of these platforms were initially popular among the youngest audience and have now become mainstream.

Roblox, the leading virtual gaming platform (also known as a Metaverse platform), reported revenue of $750 million in Q4 2023, marking a 30% increase from the previous year. On the other hand, Beyond Inc. crossed the 6 million user mark in its latest quarter, while Roblox boasts a monthly user base of 214 million players and generates $7 million in daily revenue, as per CNN.

Roblox’s CEO envisions the platform as a place where people can build relationships and even date, potentially blurring the boundaries between the current popular social media platforms and the Metaverse where a significant portion of today’s teenagers engage.

It may be easy for industry executives to dismiss Roblox and other Metaverse platforms as mere children’s playgrounds with minimal industry impact. However, two key factors suggest otherwise.

Firstly, children today influence household spending decisions and have a substantial impact on our culture. Secondly, time is dynamic, and building customer relationships encompasses the earlier stages of life as well.

Major brands like Ralph Lauren, Nike, Crocs, and Lego have launched campaigns on the platform. CNN reports over 300 brand activations on Roblox in Q4 2023 alone, with Walmart offering a feature for real-world purchases through mail delivery.

At a time when traditional retail is facing challenges and consumers are reassessing their purchasing habits, observing the quiet growth of the Metaverse could be worthwhile.