Opportunities in the metaverse powered by AI: human capital development

Text: Michael So

Special Advisor to Associate Vice-PresidentSchool of Graduate Studies Adjunct Assistant Professor

BBA (Hons) in Risk and Insurance Management (2001)

Photo: iStockphoto

The Metaverse offers unique opportunities to advance education and collaboration. In doing so, it can foster the development of human capital, which is a crucial aspect of economic growth. And by providing easier access to a diverse range of resources, it can enhance learning, promote international exchanges, address inequalities, and help to bridge the digital divide.

Moreover, with the integration of AI-powered tools, which support language translation and personalised needs, there is great potential to add new dimensions to the overall learning experience. As a result, individuals from many different backgrounds will be able to play an active part in ongoing academic discourse and become directly involved in the acquisition and transfer of knowledge.

For universities and other institutions of higher education, the challenge is to leverage the Metaverse to create immersive learning experiences. The chance now exists to transcend the limitations of traditional classroom settings. So, the goal must be to offer more engaging, effective, and personalised forms of education, with a view to developing a future workforce with the skills and adaptability to meet the demands of a rapidly changing economy.

As things change, many believe the Metaverse will offer all kinds of new opportunities for a more sustainable economy which balances growth and environmental impact. This will see reduced reliance on traditional industries and business practices which are known to harm the environment.

Instead, economic activities will increasingly shift to the virtual realm, lessening the demand for physical resources and leading to a significant reduction in the associated carbon footprint.

Such a transition aligns with the concept of “green growth”, with its emphasis on the importance of sustainable development and initiatives which protect, rather than compromise, the environment.

This philosophy entails promoting resource optimisation, lower consumption, and less waste. And, to that end, greater use of the Metaverse can certainly contribute to the creation of a more circular, eco-friendly economy.

Therefore, policymakers and businesses should make it a priority to explore ways to leverage the potential of the Metaverse. Doing so will help them to achieve sustainable growth while mitigating possible negative effects, such as the increased energy consumption of data centres.

In taking this course, though, they will also have to pay close attention to new regulatory and ethical challenges which are going to arise. As the virtual economy continues to expand, there will be questions to consider about taxation, property rights, data privacy, fair competition, and more.

To address such issues and to ensure the virtual economy is both stable and equitable, policymakers must develop effective governance frameworks. Their broad objective should be to promote transparency, accountability, and inclusion.

Furthermore, it is essential to address ethical considerations. People are already aware of the increase in risks linked to technology, such as digital addiction and online harassment. Therefore, efforts to create a thriving virtual economy must respect clear guidelines on everything from data privacy and marketing practices to the need to maintain a healthy work-life balance.

Overall, the convergence of AI and the Metaverse is shaping a new economic landscape. It will be marked by the accelerated transformation of many industries, simplified systems development, enhanced accessibility to information, and the emergence of new business and economic models.

For the sake of society as a whole, it is crucial to explore the opportunities and accept the challenges these technological advances present.

By taking full advantage of the potential offered by AI and the Metaverse, new ways can be found to achieve sustainable growth, develop human capital, and create a more equitable global economy.

It is, though, up to businesses, policymakers, and researchers to work together to drive innovation and navigate the challenges that will inevitably come in an era of exciting economic transformation.