The way we interact with each other, and the world around us, is changing fast. And with consumer expectations continuing to grow, enterprises are racing to find new ways to deliver immersive experiences.
As we discuss in the evolving interactions lens of our latest Looking Glass report, extended reality (XR) technologies offer new opportunities to engage and entertain. But what exactly is XR? And how do you separate science fiction from business fact—to develop a robust XR strategy that serves your enterprise and your customers?
Rise of the machines
XR spans augmented, virtual, and mixed reality—and everything in between. While it’s been around for decades, the rise of AI is ushering in a new era for these transformative technologies. From its roots in the gaming and entertainment sectors, XR is emerging as a key tool for marketers, sales teams, and product designers across industries.
Think about the production lifecycle of a new car. With XR, teams can create a virtual simulation of a new model—reducing costly design iterations and accelerating time to market. Or let’s say you’re in the manufacturing business. Instead of inviting prospects to your factory floor, you can transport them into a virtual environment to test and view your solutions in situ. Whether you’re demonstrating intangible tech or selling high-end couture, the ability for customers to ‘try before they buy’ is a powerful way to seal the deal.
Designing for digital natives
The opportunities for XR, though, go far beyond product development and sales. By next year, millennials and Gen Z will make up around 75% of the workforce—and companies will need to adapt their processes to suit these digital natives. Using XR in training and onboarding is one way in which organizations are already improving outputs and reducing costs.
It can also be particularly valuable in hard-to-recreate situations like fire evacuation drills or demonstrating a vehicle's safety features. Doctors can complete elements of their training in a virtual environment. Experts can be on the ground, providing assistance in a disaster zone in minutes. Astronauts can ‘walk’ on Mars. The sky really is the limit.
Navigating an emerging risk landscape
As follows all seismic leaps forward, great technological power comes with great responsibility. The ethical, security, and privacy implications of AI are something industries—and indeed governments—are beginning to grapple with. But there’s yet to be clear focus on XR specifically which, in pushing the boundaries between human and machine, has the potential to invade privacy and damage trust.
What’s more, in the rush to innovate, sustainability initiatives can fall by the wayside. These are resource-hungry technologies and it’s critical that organizations come together to think about creating a responsible ecosystem. Investments need to be made in the right standards, practices, and green technologies, so that XR can be a collaborative development that benefits all.
Read our 2024 Looking Glass report to dive into the reality behind this virtual world, and learn how you can harness emerging technologies to elevate experiences.
Disclaimer: The statements and opinions expressed in this article are those of the author(s) and do not necessarily reflect the positions of Thoughtworks.
