If you didn’t know it already, the metaverse is about to come knocking on your door: a convergence of physical and digital worlds made possible by technologies like AI (artificial intelligence), VR (virtual reality) and blockchain.
And though there’s no standard definition of the term (yet), you can think of it as the internet on steroids; a world into which we can step, to physically see and experience what’s there.
While the term has been around for a while (it first appeared in Neal Stephenson’s 1992 sci-fi novel Snow Crash), the metaverse has been given a big boost by Mark Zuckerberg at Meta who’s betting the farm on its potential. And though the ‘reality’ factor of his particular brand of virtual reality may have left some underwhelmed (Meta employees certainly were), don’t be misled: this is far more than just some here-today, gone-tomorrow fad.
Our own research at NTT DATA has proven the metaverse presents a massive opportunity to capitalize on a major shift in the way people and businesses interact with one another. Whether you are in financial services, banking, retail, or a utilities or online business, as many of our clients are, the metaverse will matter to you.
The development of a ‘proper’ metaverse is a few years away, but by the end of the decade, things will be very different. That is not far away and definitely not too soon to start preparing for what is to come.
I understand why many companies may be hesitant about leaping feet first into the metaverse – and they’re right to exercise caution, because there’s a lot of uncertainty about the path ahead.
Given that the technology is moving so fast, there are risks in entering such a disruptive new arena as this – which is why we advise our clients to move forward but tread carefully, taking small steps.
Companies simply cannot afford to wait for the metaverse to fully evolve before they start experimenting and investing.
But equally, companies simply cannot afford to wait for the metaverse to fully evolve before they start experimenting and investing in what is inevitable.
According to a PwC study, two-thirds of CIOs and CTOs view the metaverse as a top priority and are actively exploring how it could help them achieve sustainable business outcomes. Gartner predicts that over 40% of large organizations globally will begin creating metaverses for themselves using a combination of Web3, AR cloud, and digital twins – a development that could lead to significant changes in the way businesses interact with each other and their customers.
By 2030, McKinsey estimates the metaverse could be worth an impressive $5tn (£4.2tn), while Gartner forecasts that a quarter of the world’s population will spend at least an hour a day in this virtual space by 2026.
Challenges to overcome
There are real technological challenges to be overcome. For instance, the helmet needed for an immersive metaverse experience – currently bulky, uncomfortable to wear and prone to making some people nauseous – will need to evolve into lightweight glasses.
Faster 5G networks and processing by quantum computers will need to develop to the point where hyper-realistic virtual worlds can be created at scale. We must then solve the interoperability of these different virtual worlds, and address issues that will inevitably arise around digital identity and regulation.
There will also be a need for better metaverse content, aimed at engaging a wider audience than the gaming fraternity which is its current natural clan.
Make no mistake, the metaverse will happen as businesses discover new use cases. As it stands, the metaverse is an obvious way to improve consumer engagement by taking customer experience to a level not seen before.
But make no mistake, the metaverse will happen as businesses discover new use cases. As it stands, the metaverse is an obvious way to improve consumer engagement by taking customer experience to a level not seen before.
It is also a natural fit for any enterprise wanting to create a corporate metaverse that offers a unique environment for clients and suppliers, as well as employees who would find opportunities to relax, collaborate with others and learn new skills.
In fact, it can become a place parallel to our physical working environments, where employees are able to have unique experiences that are inconceivable in today’s world – one which provides them with differential value. Organizations can then improve engagement, attract new talent, aid professional development and increase the feeling of belonging and the emotional bond with the company. At NTT DATA, we are already working on that: building a virtual world orientated to employee training and creating an immersive experience that makes for faster, more effective learning.
Those using VR reality for training (‘v-learners’), for instance, complete learning modules four times faster than they would using classroom methods and were over four times more focused than e-learners who used non-VR electronic and digital resources.
However, to simply recreate the real world in the metaverse would be a missed opportunity. Instead, we should use it to do what can’t be done in the real world by creating new kinds of environments that aren’t otherwise possible. To use a medical example: surgeons wearing haptic gloves could realistically practice performing delicate surgeries, or enter a vein, an artery or an organ to examine its hidden internal structure in detail.
The metaverse opportunity
It’s important to understand that the impact of the metaverse is still unknown. When the internet and smartphones first launched, we had no idea what impact they would have on our lives. However, the smartphone reshaped our relationship with the world, and we are in a similar situation with the metaverse, only on a bigger scale.
We now have a better understanding of digital worlds and a sense that something big is coming down the road: something that will change society, business models, and day-to-day life. Expectations are different now. We think bigger, and we know that something major is going to happen – we just don’t know exactly what. But you can be sure that the metaverse will significantly change the way we live and work as it evolves to become more accessible, more immersive and an ever-greater part of our lives.
You can be sure that the metaverse will significantly change the way we live and work as it evolves to become more accessible, more immersive and an ever-greater part of our lives. Yet, there are many unanswered questions, not least about our new digital identities.
Yet, there are many unanswered questions, not least about our new digital identities. If each of us has an avatar inhabiting the metaverse, what if it gets kidnapped, or my avatar kills another by mistake (or intentionally)? And if we’re buying things or accessing services in the metaverse, how will we pay for them? Should we have insurance?
McDonalds, Pepsi, Estee Lauder and other big brands are already buying up virtual real estate, so banks and financial services firms will need to start thinking hard about their metaverse involvement.
Of course, this is all part of a movement to an increasingly AI-led world, where the lines around everything are going to be continually redrawn. The genie is out of the bottle and it can’t be put back in. Rather than wondering if the metaverse will affect your business, now is the time to start thinking about how it will – and what you can do about it.
