AI in the Metaverse: Revolutionizing Manufacturing and Retail

Integrating artificial intelligence (AI) and machine learning (ML) technologies drives the metaverse in e-commerce. AI-powered virtual assistants and chatbots within the metaverse enhance the customer service experience, providing personalised recommendations and guiding users through their virtual shopping. AI in the metaverse contributes to the overall efficiency of e-commerce interactions, streamlining processes and improving user satisfaction. In the same way, the manufacturing industry is also revolutionising with new technologies like metaverse and AI.

In this article, we will discuss the convergence of Metaverse with AI in the manufacturing and retail industry, using real-life examples to illustrate its impacts and limitations.

Transforming Manufacturing Industry

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According to Precedence Research, “The Asia Pacific metaverse in manufacturing market size was estimated at USD 4.27 billion in 2023 and is expected to grow around USD 112.83 billion by 2033 with a significant CAGR of 38.80% from 2024 to 2033”.

Real-life scenario

Imagine a virtual manufacturing unit where VR simulations are conducted to do quality control checks, supply chain asset tracking, and even virtual maintenance. Real-time feedback from digital twins can trigger automated maintenance actions in the physical world. Product design teams are collaborating from different geographical locations. The below fig depicts the future where the physical and digital realms converge to optimise production and empower the manufacturing industry.

Let’s understand this in more detail with the figure below.

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Leveraging AI and the Metaverse in Manufacturing

1. Prototyping & Simulation

The metaverse simplifies creating and interacting with prototypes, especially in Additive Manufacturing (AM), using mixed reality (MR) technologies.

Digital twins (DT), augmented reality (AR), and virtual reality (VR) offer detailed factory layout simulations (FLS) and allow real-time interaction with virtual models to improve process planning and optimisation. Multiple autonomous simulations could be run in the metaverse, and the best scenario could be implemented. A digital replica of the robot could be built in the metaverse, and AI can train different AI models simultaneously while trying to perform said tasks in the metaverse.

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1. Training Employees

A factory replica could be made in the metaverse with a digital twin to train employees from remote locations. Digital twins are virtual representations of physical assets, systems, or processes that simulate, predict, and optimise real-world operations. It would reduce training injuries, especially for exercises that involve dangerous machines or substances. Immersive training will undoubtedly be of enormous benefit in AM as workers can easily be trained appropriately, giving rise to an increase in skilled personnel. It would help companies cut costs in the long run as trainees would not be required to learn with raw materials or physical machines.

Note: Many companies, such as AR Technologies, Walmart, Delta Air Lines, UPS, Volvo Group and Porsche, use VR technology to train their employees.

1. Quality Assurance and Maintenance

Repairs can also be carried out easily since pinpointing a faulty part would be easy. With immersive technologies like VR, AR, and MR, remote repair and maintenance will be possible as data can be overlaid in the real world, giving operators real-time data in an industrial environment. An experienced technician can remotely guide a less experienced technician in the field without obstructing the technician’s views.

1. Virtual Coworking

It would allow workers to work together in different locations. With Metaverse, factory floor planners, product designers, factory engineers, and other workers can comfortably work from different locations while working on the same project while staying in different locations.

Metaverse Manufacturing Challenges

1. Reputation and Identity: Verifying one's identity and reputation in the Metaverse is crucial. These days, facial features, footage, and voice are at risk of being forged, so new verification methods need to be developed, and current methods must be improved.

2. Data and Security: Protecting personal data and privacy is essential in the Metaverse. Increasingly, digital avatars such as videos, faces, and voices are in the virtual world, a metaverse; user authentication and verification are everyday chores compared to the real world. Nowadays, attackers are making identical sounds in movies by mimicking the appearance of the actual user using sophisticated VR and AR tools and devices in collaboration with AI bots. Consequently, the security and privacy of avatars remain a significant concern.

3. Currency and Payments Systems: A unique transaction verification system is needed to enable secure and reliable trade. It may involve new forms of payment, such as VR Metaverse Crypto, for secure, real-time trade. It is required due to the metaverse's decentralised nature and the necessity for low-fee microtransactions and automated smart contracts. These systems also offer enhanced user privacy and innovative payment methods.

4. Ownership and Property: A unified system is needed to verify ownership rights for virtual assets in the Metaverse, similar to how NFTs (Non-Fungible Tokens) represent real-world objects.

Leveraging AI and the Metaverse in the Retail Industry

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The global metaverse in the e-commerce market is anticipated to reach USD 106.13 billion by 2030. According to a new report by Grand View Research, Inc., it is projected to grow at a CAGR of 40.0% from 2024 to 2030.

Real-life Scenario

Imagine a virtual mall where we can explore interactive 3D storefronts by creating personalised avatars. AI-powered chatbots can offer real-time recommendations and personalised styling advice. These chatbots have advanced product knowledge and customer preferences; customers can virtually try on clothes, furniture, or even test-drive cars using augmented reality (AR) technology.

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1. Immersive Virtual Stores and Augmented Reality (AR) Fitting Rooms: Metaverse can help create the physical shopping experience by creating virtual stores that customers can visit while sitting at home using a VR set. AR mirrors overlay the virtual clothing onto the customer's live image. Customers can see how clothes and accessories look or fit on them in real-time, moving and turning to view the outfit from different angles. In the metaverse, to try clothes and provide a highly accurate virtual try-on experience, 3D avatars can also be created based on the customer's body measurements.

2. Optimized Supply Chains and Inventory Management: With the convergence of AI and the metaverse, supply chain and inventory management are revolutionalised by enabling:

• Accurate demand forecasting
• Automated stock replenishment
• Optimised logistics

Retailers can monitor and adjust operations dynamically, reducing costs, minimising waste, and improving efficiency. These advancements can improve overall customer satisfaction and support sustainable practices.

3. Enhanced Customer Engagement and Personalization: AI-powered data analysis provides customers with personalised product recommendations, making shopping fast and easy. For instance, an AI chatbot can suggest outfits based on previous purchases and current trends. It also analyses customer feedback and behaviour to enhance the shopping experience. This leverages AI and the Metaverse.

For example, an AI chatbot might suggest outfits based on previous purchases and current fashion trends, as shown in the figure above. To continuously improve the shopping experience, AI also analyses customer feedback and behaviour.

4. Marketing and Promotions: AI can analyse data and provide highly personalised marketing campaign suggestions. These campaigns can be presented in immersive and interactive formats in the metaverse, increasing customer engagement and conversion rates. Personalised discounts and promotions can be offered to retailers and customers.

5. Virtual Product Launches and Events: Metaverse allows customers to attend virtual events and product launches, allowing retailers to reach a global audience. AI can facilitate interactive and engaging marketing events, creating memorable customer experiences and driving more brand awareness.

Challenges and Considerations

1. Technological Barriers and Infrastructure

Challenge:

Implementing AI and the metaverse requires high-performance computing, high-speed internet, advanced GPUs, big data solutions, secure networking, interoperability standards, AI platforms, VR/AR devices, intuitive UI/UX design tools, and robust cybersecurity infrastructure.

Solution:

• Investment in high-speed connectivity and cutting-edge technology.
• For expertise and resources, strategic partnerships are required with tech providers.

2. Data Privacy and Ethical Use

Challenge: Data privacy has vulnerabilities. Obtaining informed consent from users is crucial. Retailers must be transparent about what data they collect and how it will be used.

Solution:

• Implementing robust security measures like encryption, firewalls, and access controls is required.
• Transparency about data collection and usage should be maintained. Customers should have the option to opt out of data collection practices.
• To ensure ethical AI practices and regulatory compliance. Regular audits should be conducted.
• Stay informed and compliant with data protection regulations.

Conclusion

The metaverse has a wide range of potential healthcare and retail applications. When paired with AI, AR, and VR, it may profoundly improve the medical and retail industry, promote diversity, and more. By enhancing telemedicine, the metaverse may expand healthcare's reach to better serve more patients.

References

1. ResearchGate. (2023). Metaverse in Manufacturing Using Emerging Technologies: An Overview For The Smart Industry 4.0. Retrieved from ResearchGate.
2. McKinsey & Company. (2022). How the metaverse could transform the manufacturing industry. Retrieved from McKinsey & Company.
3. Precedence Research. (2023). The Asia Pacific metaverse in manufacturing market size was estimated at USD 4.27 billion in 2023 and is expected to grow around USD 112.83 billion by 2033. Retrieved from Precedence Research.
4. ScienceDirect. (2024). Convergence of AI and the Metaverse in Manufacturing: Opportunities and Challenges. Retrieved from ScienceDirect.
5. Twin Reality. Companies that are Using VR for Training. Retrieved from Twin Reality.