The future of human-AI Interaction: The role of virtual avatars and VR
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Artificial Intelligence (AI) is redefining human-machine interactions — evolving from rule-based chatbots to context-aware virtual assistants. More recently, generative AI (GenAI) solutions have enabled businesses to hyper-personalize products and boost real-time virtual assistance. McKinsey has found that over 80% of customer interactions benefit from hyper-personalized decision-making support through conversational chatbots. Moreover, prioritizing customization yields significant revenue growth, with businesses seeing a 40% increase in revenue compared to those with less emphasis on individualized experiences.
But is that enough for modern, AI-savvy consumers? Digital natives are gradually seeking more human-like interactions with AI. A study revealed that technical and non-technical users prioritize cognitive and social-emotional skills over technological prowess, indicating a shift towards AI interactions that are both personalized and more human-like.
Virtual avatars and virtual reality (VR) are tools for humanizing AI. These emerging technologies replicate human interactions to offer natural, emotionally engaging, and immersive experiences. Our blog will delve into virtual avatars, virtual reality, the benefits of humanized AI, and their practical use cases.
A closer look at virtual avatars and VR
Virtual avatars are digital assistants that leverage natural language processing (NLP), computer vision (CV), and emotion AI to provide users with more humanized interactions. These avatars are estimated to generate revenue of USD 270.61 billion, growing 49.8% between 2024 and 2030. This growth is driven by the rising interest in human-like engagements, as virtual avatars understand and respond with more empathy and insight, enhancing the connection and communication between users like never before.
AI avatars are more advanced than the typical chatbots at the bottom of the screen. Conversations with traditional chatbots can frustrate the user as they often provide pre-programmed responses, prompting users to seek assistance from a live agent. In contrast, digital avatars enhance the user experience by accelerating buying decisions through 3D virtual try-ons, showing customers products that match their interests at affordable prices, and so on.
Virtual reality, or VR, is a digital simulation of the real world. When coupled with AI, VR transforms human engagements by creating immersive experiences, blurring the lines between physical and digital realms. Beyond transactional interactions, it fosters a sense of presence and realism, making AI interactions more natural and meaningful.
For instance, machine learning in VR education analyzes user learning styles, identifies challenging topics based on user history, creates personalized study material, and provides intelligent feedback. This makes learning more engaging and effective. A study revealed that employees upskill 4X faster when trained through VR and are 3.75 times more emotionally connected to the content.
AI integration further optimizes user interaction when merged with avatars and VR technology. However, understanding the historical timeline of AI’s evolution towards humanized interactions is crucial for comprehending its relationship with users.
Charting the history of AI interactions
Historically, humans and computers existed as separate entities, with technology serving as a tool under human direction. This relationship has undergone a dramatic transformation in recent years. As AI becomes increasingly incorporated into our daily lives, we’re witnessing the rise of more sophisticated AI systems capable of recognizing emotional cues like tone of voice and facial expressions. This development is paving the way for more nuanced AI interactions.
The automotive industry exemplifies this shift. Modern AI systems in vehicles not only enable advanced driver assistance features but also monitor driver alertness, suggesting breaks when needed. They personalize in-car entertainment, adjust climate settings, and enhance the overall driving experience.
In healthcare, virtual reality (VR) is revolutionizing patient care. By creating immersive 3D models, VR helps patients better understand their conditions and upcoming procedures. This approach not only increases patient awareness but also provides reassurance, potentially leading to improved outcomes.
The perks of AI-infused avatars and VRs
Digital avatars and VR technology are revolutionizing diverse industries and enhancing employee and customer experiences. AI interactions are now unparalleled by boosting efficiency, providing data-driven decision support, and addressing user queries naturally. Additional benefits include:
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Trust and verification:
GenAI models can generate falsified answers that seem correct, known as AI hallucinations. XAI can explain the rationale behind GenAI systems’ content, accelerating the process of rectifying nonsensical content, strengthening users’ faith in GenAI applications, and building GenAI systems grounded in reality.
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Enhancing mental health
As an additional treatment, therapists can utilize VR in cognitive behavioral therapy to tactically expose patients to anxiety triggers, phobias, and post-traumatic stress disorder (PTSD) in a controlled environment. This approach can lead to better performance in real-life situations.
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Elevating design and modeling process
VR technology empowers manufacturing companies to recreate real-world scenarios and test prototypes, resulting in better quality, resource savings, and reduced costs and time.
Navigating the challenges
Despite the many benefits of avatars and VRs, there are several hurdles. These include:
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Mastering human-like characters in virtual avatars
Striking the right balance between human expressions, movements, and gestures is a highly intricate process that demands cutting-edge motion capture systems.
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Rising ethical and security concerns
The potential for technology misuse has increased. Therefore, developers must create avatars and VR systems that adhere to safety standards and privacy guidelines, ensuring the protection of users from potential risks.
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Minimizing algorithmic bias
Avatars and VRs might produce biased outcomes due to biases present in training data. Moreover, AI models might be working on black box models, requiring more transparency to enable users to comprehend the rationale behind AI decisions.
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Facilitating impersonal experiences
Hyper-automation has the potential to lead to impersonal experiences. Therefore, organizations must find a delicate balance between leveraging AI for humanization and preserving genuine human interactions. An excessive reliance on AI may compromise the overall quality of customer experiences.
To address these challenges effectively, developers must prioritize edge computing, enhance user interfaces, employ diverse training data, and anonymize data using decentralized technologies like blockchain.
A glimpse into the future of humanized interactions
Humanized AI interactions present infinite opportunities with VRs and avatars, which cater to individual needs and foster deeper connections between brands and customers, surpassing usual transactions. The human-centered AI market is projected to reach USD 48 billion within the next two years. Companies must embrace ethical AI development to stand out from the competition and ensure inclusive, accessible avatars and VR experiences that augment human capabilities.
At HTCNXT, we are pioneering virtual avatars and VR with a deep understanding of market trends and client challenges. Our VR-based 360° solutions, captivating 3D VR visualizations, head tracking, and interactive menus benefit businesses with enhanced efficiency, shorter training periods, faster turnaround times, and substantial cost savings. The future of human-computer interaction is here. HTCNXT is at the forefront, shaping how businesses engage with their customers and employees in the immersive world of avatars and virtual reality.
AUTHOR
Rajeev Bhuvaneswaran
Vice President, Digital Transformation and Innovation Services
SUBJECT TAGS
#ArtificialIntelligence
#VirtualReality
#AugmentedReality
#Avatars
#GenerativeAI