Here are the opportunities and obstacles entrepreneurs need to know about. A new article from Anna Belova, Founder and CEO of DEVAR was published in Entrepreneur.
This article aims to provide entrepreneurs with basic knowledge and understanding of the potential of immersive technologies and generative AI in business and discuss their impact on the global business agenda.
Key Takeaways
- Spatial computing, which encompasses technologies like augmented reality (AR), is revolutionizing the way we interact with digital content and is changing the global business agenda.
- The adoption of AR technology and generative AI in business offers substantial benefits to entrepreneurs, including improved customer engagement, increased sales and differentiation from competitors.
- While AI and generative AI present many benefits, businesses face challenges regarding talent acquisition, user adaptation and the lack of long-term experience.
“Spatial” is certainly one of the most popular words this year. In my opinion, Collins Dictionary is likely to include it at least on its shortlist for 2024. Spatial computing is an innovative technology that is changing the way we interact with digital content. And I want to emphasize that it’s not just a new technology, but a new philosophy about how we interact with the digital world.
In this article, I want to discuss how spatial content will impact businesses around the world and how its consumption is changing the global business agenda. We used to think in terms of flattened pictures and videos that were necessarily tied to the devices that broadcast them. Now we need a new type of thinking — spatial. The surface for transmitting information is literally the air around us.
The future of spatial technologies
My article aims to provide entrepreneurs with basic knowledge and understanding of the potential of immersive technologies and generative AI in business. Specifically, I would like to focus on augmented reality technology, as this is the type of immersive technology that is most available right now. In fact, any smartphone can work with web AR technology now (to interact with AR content, you need internet access and any web browser on your smartphone — you don’t need to install any applications).
Imagine that in three to five years, users will replace cell phones with XR glasses. There are already many factors for this change in consumption patterns. Apple Vision Pro is a flagship in creating a fashion for consuming immersive technology in everyday life.
In addition, more than 50 companies around the world are working on their own versions of XR glasses. All the tech giants are using augmented reality as part of their global strategy. The AR software market is projected to surpass $140 billion in 2025, which will show a 12-fold growth. Projected consumer spending on physical goods with AR will reach $255 billion in three years, and it’s already billions in sales today.
In 2020, 83.7 million people used AR at least once per month in the U.S. (and this is data from before Apple Vision Pro was released). This trend is coupled with the evolutionary development of the impression economy, where customer experience is increasingly becoming a deciding factor in purchase decisions. There is no doubt that AR is becoming mainstream, just like generative AI, but with less PR backing for now.
The transformative impact of spatial computing
There is no doubt that the launch of Apple Vision Pro has had an impact on the market. But beyond the devices themselves, it’s important to understand what software we need and, in my opinion, even more importantly, what content will work to achieve business goals.
The development of generative AI to create visuals, video and spatial content through augmented reality technology, has already helped make a significant leap in the creation of such content. In the rapidly changing world of artificial intelligence, entrepreneurs are actively integrating generative AI technologies into their business processes. With the growing interest in these technologies, the a16z foundation has estimated a threefold increase in budgets for implementing generative AI in businesses in 2024. These costs are moving from innovation budgets to ongoing software budgets.
Now, we will explore the key concepts, benefits and challenges businesses may face in implementing these technologies, as well as examples of how to effectively utilize them to drive growth and innovation across industries.
Steps to integrating AR and generative AI into your business
- Understanding market needs: Knowing your target audience and how spatial computing can meet their needs or solve existing problems is the first step to successful implementation.
- Spatial thinking: Now is the time when the bold application of new technologies can set trends for your business for years to come. The market is completely fresh — there are no established rules and traditions. Boldly use your imagination and out-of-the-box thinking, and change your traditional content to spatial content.
- Team training: It’s important that your team is aware of the possibilities of AR and AI. Investing in training and skills development is key to innovation.
- Pilot projects: Start small by launching pilot projects to evaluate the impact of AR on your business and get feedback from users.
- Utilize off-the-shelf platforms: No-code platforms offer tools to create AR content without the need for deep programming knowledge, making the technology accessible to a wide range of entrepreneurs.
- Adapt and iterate: The AR market is rapidly evolving, so it’s important to constantly adapt and improve your content based on user feedback and changes in technology.
Business benefits
- Improved customer engagement: AR offers unique opportunities to create an engaged and interactive user experience.
- Increase sales: Interactive AR product demonstrations can increase conversion and average check.
- Differentiation: Innovative use of AR and AI can set your brand apart from competitors.
- Process optimization: AR can simplify and speed up various business processes such as staff training or product demonstrations.
Overcoming challenges
- Talent acquisition: Implementing and scaling generative AI and immersive technologies requires the right talent, which many companies currently lack.
- User adaptation: Businesses must help users get used to a new type of interaction with their brand.
- Wide thinking: Without innovative thinking, projects risk becoming one-size-fits-all.
- Lack of long-term experience: Lack of accumulated experience can be a barrier.
- Being a pioneer: Experimentation and pioneering can be difficult for many corporations, but it is essential for innovation.
Spatial thinking and the consumption of spatial content are changing business agendas around the world. Generative AI and AR are powerful tools for business transformation, opening new horizons for innovation and growth. By understanding the basics of their application and the relevance of these technologies, even entrepreneurs who have not previously encountered them can benefit significantly.
Set your sails today to be at the right point in your business at the right time.
