Generative AI and the metaverse: The automation of the metaverse

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  Quantumrun Foresight
• January 23, 2024

Insight highlights

With generative artificial intelligence (AI), virtual worlds can evolve continually, creating endless possibilities for exploration, interaction, and customization. The cost of developing these expansive environments is significantly reduced, as AI can automate the creation of intricate landscapes. Moreover, this accessibility allows for a more diverse range of creators and users, fostering greater innovation and inclusivity.

Generative AI and the metaverse context

Generative AI uses algorithms on existing data to create new content. These algorithms usually require a few human-made assets, such as images, sound, or 3D models, and then apply the randomness and processing power of computers to create similar yet distinct assets. This approach allows developers to build upon existing creative works and generate unique content that can enrich various platforms, including metaverse environments. As a result, users can enjoy a more engaging and personalized experience.

With faster and more efficient microprocessors and cloud computing technologies, generative AI can now rely on large neural networks that can identify patterns and representations in highly complex domains to create assets much faster. This rapid content generation is particularly beneficial for industries that demand high levels of creative output, such as gaming, entertainment, and digital art. The gaming industry, in particular, requires highly immersive interfaces and contains multitudes of interactive elements that often need significant hours and resources to build. 

For example, Microsoft partnered with blackshark.ai and trained a generative AI to create a photorealistic 3D world from 2D satellite images for the Microsoft Flight Simulator game that enables players to fly around the entire Earth. Additionally, AI models can be improved iteratively to streamline upgrades and add-ons to existing games. These generative AI innovations and automation can also power similar expansions to almost any private and public sector metaverse. 

Disruptive impact

Traditionally, games emphasize real-time experiences, which can be difficult to design due to the sheer volume of asset types involved (e.g., 2D and 3D art, sound effects, music, and dialog). As a result, generative AI's low-cost and high-efficiency content creation capabilities can disrupt future game development's cost structure. By automating the creation of various game assets, developers can allocate resources more effectively, such as prioritizing the user experience.

Generative AI can boost the productivity of 3D artists and designers by rendering a 3D scene based on a few 2D pictures. For instance, the NVIDIA Instant Nerf generative AI model combines images of a scene captured with a camera at different angles and then renders a corresponding 3D scene that is freely explorable. This approach enables artists to work more efficiently by automating the conversion process, allowing them to focus on more creative aspects of their projects. By offloading repetitive and time-consuming tasks to algorithms, developers can accelerate the production process and deliver new games and updates more rapidly. 

Text-to-image generation may lower the entry barrier to generative AI technologies as image generation with natural language can be a simple way to interact with the AI model for non-technical users or artists. This approach democratizes access to advanced AI tools, allowing a wider range of creators to experiment with AI. As a result, the gaming and metaverse industries may see an influx of fresh perspectives and innovative ideas, leading to a more vibrant digital landscape.

Implications of generative AI and the metaverse

Wider implications of generative AI and the metaverse may include: 

• The development of stronger online communities, but also risks exacerbating the digital divide and increasing social isolation among those who cannot access or adapt to the metaverse.


• New business models and revenue streams, such as virtual real estate, digital goods, and AI-driven services. 


• The metaverse helping bridge the gap between different cultures and age groups by creating shared experiences and opportunities for interaction. However, it may also exacerbate existing social inequalities if access to the metaverse is limited to specific demographics.


• Generative AI driving rapid innovation and development of new technologies, leading to unforeseen advancements in virtual and augmented reality, and AI-driven content creation. This trend may result in a technological arms race between companies and countries to maintain a competitive edge in the metaverse.


• Traditional jobs becoming obsolete while new AI-driven and metaverse-related roles emerge, leading to a shift in labor demands and extensive reskilling and upskilling of the workforce.


• The underlying infrastructure requiring significant computational power and energy, contributing to increased energy consumption and carbon emissions. However, AI-driven solutions within the metaverse could also promote more sustainable practices and help combat climate change.


• Small and independent publishers being able to compete with larger gaming companies.

Questions to consider

• If you're a game developer, how might generative AI help you?


• What are the other potential benefits of a customizable and automated metaverse?