Tuesday, May 5, 2026

Why Metaverse Failed, AI Succeeds

“Metaverse” just never seemed to catch on, and the issue is “why?” While it is always possible to argue that the concept was simply “ahead of its time,” perhaps there were other issues as well. 


For starters, metaverse was a push toward more immersive, higher-fidelity digital environments. But as with other proposed advancements in digital media, it did not solve a broad, urgent problem for most users.


Television or movies presented in “three dimensions” also arguably are “more immersive” or “realistic,” but that never is enough to create demand. 


But some thought something more was at stake. The metaverse, some thought, would become the next computing platform, the successor to the mobile internet. 


But the technology was not compelling enough; the friction was too high; the value way too limited. The ecosystem, content base and network effects were not there. 


Compare metaverse to artificial intelligence, a general-purpose capability that can attach to almost any cognitive workflow and business process.


Use case

Metaverse value

AI value

Relative usefulness

Virtual meetings / collaboration

Moderate: better spatial presence, but often not better than video calls. 

High: summarizes, transcribes, drafts follow-ups, and speeds decisions. 

AI

Employee training / simulation

High in physical or risky environments, where immersion helps. 

High: creates training content, coaches, quizzes, and personalizes learning. 

Tie, slightly AI

Customer support

Low to moderate: immersive support is niche.

Very high: chatbots, agent assist, routing, and automated resolution. 

AI

Sales / product demos

Moderate: strong for 3D visualization and experiential demos.

High: personalizes outreach, generates content, and qualifies leads. 

AI

Entertainment / gaming

High: this is one of metaverse’s best-fit domains. dreamsoft4u

High: generates content, NPC behavior, personalization, and moderation. 

Tie

Education

Moderate to high for immersive labs, historical reconstruction, or anatomy. dreamsoft4u

High: tutoring, summarization, feedback, and adaptive learning. 

AI

Healthcare / therapy

Moderate: useful for exposure therapy, rehab, and visualization. 

High: triage, documentation, diagnostics support, and patient messaging. 

AI

Remote field assistance

Moderate: useful when a remote expert needs the user’s visual context. techtarget

High: guides workers, interprets data, and generates instructions. 

AI

Marketing / brand experiences

Moderate: immersive campaigns can be memorable but narrow. dreamsoft4u

Very high: segmentation, content generation, ad optimization, and personalization. 

AI

Commerce / shopping

Moderate: 3D storefronts help some categories like real estate or furniture. 

Very high: recommendation, search, pricing, and conversational shopping. 

AI

Design / visualization

High: strong when spatial understanding matters. 

High: concept generation, variants, and analysis, though not always spatial. 

Tie

Knowledge work / office tasks

Low to moderate: metaverse mainly changes the interface.

Very high: directly improves writing, coding, analysis, planning, and review.

AI


Where metaverse mainly extends what digital media can look and feel like, AI extends what software can do. 


A virtual world can make communication, entertainment, and simulation more realistic, but it still stays within the realm of mediated experience. 


AI, by contrast, is increasingly useful wherever humans are reasoning, drafting, classifying, predicting, summarizing, planning or making decisions.


AI adds value even when the interface stays ordinary, because it upgrades the work itself rather than just the container around the work.


Metaverse even if all the other issues had not been present) is “only” the next evolution of realism in electronic media, while AI is the next evolution of cognition. 


Perhaps virtual reality will someday deepen immersion for users. 


But AI, in principle, can affect almost every cognitive task because it can assist with language, judgment, memory, analysis, and creativity in almost every domain. 


And adoption barriers are quite low: people can use it right now, with low friction and no new hardware requirements. 


If metaverse was about the realism of the interface, AI  is about the augmentation of cognition itself. 


I don’t recall anybody arguing that metaverse was a general-purpose technology on the scale of electricity, in terms of impact,for example. It’s pretty hard to find anybody arguing AI is less than that.


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