Back in 2021, everyone was full of enthusiasm about the metaverse. A glittering virtual world that would bring us all together, the next generation of the internet promised to be an in-colour, in-person experience that would unite us all.
It came at a time when we were still feeling the impact of Covid and its associated lockdowns. Little wonder that were all a bit stir-crazy and willing to latch on to new ideas.
Social media giant Meta was perhaps one of the most enthusiastic about the prospects for the digital world, pinning its hopes for the future on adoption of the technology. It was already busy building Horizons, a virtual world for work, socialising, learning – anything you could think of. And it had bigger plans. Then known as Facebook, the company said it would create 10,000 new highly skilled jobs across the European Union over five years to build the metaverse.
[ Google’s gains and Meta’s woes show a more cautious AI marketOpens in new window ]
That November, chief executive Mark Zuckerberg announced the company would rebrand as Meta, with its focus to “bring the metaverse to life and help people connect, find communities and grow businesses”.
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Fast forward a few years and the picture isn’t quite as rosy. Meta has poured billions into the technology, with its Reality Labs unit racking up $70 billion in losses. And aside from the mixed reality glasses and some fun VR games, there isn’t a whole lot to show for it.
There were missteps along the way. The original version of Meta Horizon Worlds, for example, featured legless avatars that, while not a deal breaker, was a little disturbing. Concerns were also raised by watchdogs over privacy and safety in the virtual worlds.
And it turns out that once we got a taste of normality, few people were keen to shut it out and don a virtual reality headset so they could attend a virtual quiz with the family on a Friday night.
So four years on, where are we? Meta is reportedly considering cuts at its metaverse business. Although nothing has been confirmed, sources say its budget could be slashed by as much as 30 per cent.
Does it mean the metaverse has gone away? Not exactly. Meta is ploughing on with augmented reality glasses and VR gaming, which is fun if still niche. Like all technologies, the metaverse may eventually find its place. But as of right now, that place is not in every home and office.
Instead, the tech industry – including Meta – has a shiny new toy. AI is now being held up as the next phase of the digital revolution, taking over the work we don’t want to do and generally making our lives better, as long as we don’t work in one of the jobs that AI expects to eliminate or change beyond recognition, of course.
Google, Microsoft, OpenAI, Nvidia, and yes, Meta too, have all bet big on the technology, pouring billions into developing it and funding the AI arms race.
But you would be right to be cautious about AI too. There is a bit of déjà vu about the whole thing, from the big money being invested to the watchdogs again raising concerns about privacy and safety.
And while technology companies have been – unsurprisingly – enthusiastic about its prospects, consumers haven’t been quite as willing to adopt it wholesale. We may dabble with ChatGPT and Gemini, asking the chatbots questions that could have been an online search, but most have yet to the everyday use for AI, at least to the point where they are willing to pay for the services every month and fill in some of the gaping financial hole the technology has created.
That leaves businesses to pick up the slack and make the billions poured into developing AI models worth it. But for that, it has to deliver real value to companies, not just as a more advanced, slightly less annoying Clippy from Microsoft Word-past.
Hopes are being pinned on agentic AI, which is the next frontier for businesses and consumers alike. In this brave new world, AI agents could carry out tasks with minimal human intervention. That could be shopping on behalf of consumers, booking flights etc, or resolving customer queries without the need for human intervention. AI agents could reroute shipments in the supply chain when an issue is identified, or autonomously detect and deal with cybersecurity threats. AI agents don’t get tired, don’t need breaks and can work around the clock without looking for overtime.
That is, presuming the AI companies could persuade their customers to go for it.
A recent survey from PwC said that less that 10 per cent of Irish companies surveyed had adopted AI agents more broadly within their business. The majority – 83 per cent – said they had “limited adoption” or were “exploring” the technology. The hesitation speaks volumes.
Of those that implemented AI agents, more than half said there were productivity gains. But before you get too excited, only 38 per cent said that translated into tangible cost savings, which is one of the big promises of the technology.
Again, big money is being poured into technology that may or may not be life changing. Like the metaverse, AI is an expensive bet on a new technology. It may be the future or it could prove another costly mistake. The tech industry, meanwhile, will be busy chasing the next big thing.
