The Role of Artificial Intelligence in Augmented Reality and Virtual Reality

Moody Mattan • August 2, 2023
BrandXR Founder & CEO Moody Mattan talks about the converging of AI, AR/VR, and other technologies to create the Metaverse.

In this rapidly changing digital age, technology continues to evolve and revolutionize our lives in myriad ways. In the forefront of these technological breakthroughs is the confluence of Artificial Intelligence (AI), Augmented Reality (AR), and Virtual Reality (VR). 


The Confluence of AI, AR, and VR: A Technological Evolution


 AI, AR, and VR are no longer foreign terms in our lexicon, but do we truly understand their profound implications? 


Defining Key Concepts: AI, AR, and VR


AI, at its core, is the creation of intelligent machines that mimic human behavior and learning capabilities. AR overlays digital content onto our physical world, augmenting our reality. VR, on the other hand, immerses us completely in a virtual world. So, how does AI come into play in AR and VR? Let's find out. 


The Emergence of AI in AR and VR 


The true power of AR and VR lies in their interactive capabilities and
immersive experiences. However, it is AI that supercharges these experiences, providing real-time responses and personalized environments. 


AI-powered AR: A Game Changer 


 AI in AR is transforming how we interact with the digital world. It enables applications to recognize and understand their environment, providing real-time and contextually relevant information. 


The Impact of AI on VR Applications 


 When it comes to VR, AI helps to create more lifelike and
interactive virtual environments. AI-powered characters can learn and adapt to the user's behavior, creating a more immersive and realistic experience. 


Harnessing the Power of AI for Interactive Experiences 


AI's machine learning capabilities are integral to enhancing the interactivity of AR and VR. But how does this happen? 


How AI Enhances User Interaction in AR and VR 


AI algorithms learn from each user interaction, refining and personalizing the AR and VR experience. This enables the creation of immersive environments that react in real-time to the user's actions. 


Without AI perception algorithms, your Pokémon would float in the air or run through walls like a ghost. In other words, AI in AR and VR makes it possible to create more realistic experiences.


Using AI to Create Immersive Virtual Worlds 


AI algorithms can be used to create complex, dynamic virtual worlds in VR applications. These virtual worlds can be modified and adapted in real-time based on user input and behavior. 


Soon, generative AI will be used in AR and VR to create content in 3D directly in front of your eyes, such as spawning virtual objects, animals or full avatars to interact with, or even turning your otherwise plain room into an exotic environment.


Natural Language Processing (NLP) in AR and VR


 NLP, a subset of AI, is revolutionizing how we communicate with AR and VR systems. It enables these systems to understand and respond to human speech, enhancing the realism and interactivity of virtual experiences. 


Real-Time Communication and Interaction


Through NLP, AR and VR applications can provide real-time responses, making the user feel like they are interacting with a human and not a machine. 


The Benefits of AI-Infused AR and VR 


AI doesn't just enhance AR and VR; it transforms them. How, you ask? Let's delve into this. 


Personalized Experiences Through Machine Learning 


AI's machine learning algorithms learn from user behavior, enabling AR and VR applications to provide personalized experiences that adapt to the user's preferences and behavior. 


Amplified User Experience and Learning Experiences 


AI significantly enhances the user experience in AR and VR, making it more immersive, interactive, and engaging. This is particularly beneficial in learning experiences where AI can adapt the content based on the learner's progress and understanding. 


The Future of AI in AR and VR 


As technology continues to evolve, the role of AI in AR and VR will only become more significant. 


Anticipating Technological Advancements 


With continued advancements in AI, we can anticipate more immersive, interactive, and personalized AR and VR experiences in the future. The potential of AI-powered AR and VR is just beginning to be tapped, and the possibilities are limitless. 


Schedule a Demo

In conclusion, AI plays a pivotal role in the continued evolution and development of AR and VR technologies. It has opened new doors for interactive and personalized experiences, making AR and VR more engaging and immersive. As we look to the future, AI's role in AR and VR will only continue to grow, creating exciting prospects for technological advancement.* 

TALK TO A PRO

We're here to bring your brand to life!

Stay Connected with BrandXR

Create Augmented Reality for Free!

Create, Publish, and Measure 3D Augmented Reality Experiences Without Having to Code.

Free Trial
Augmented Reality Roars into Zoos
By Moody Mattan August 26, 2025
Discover how U.S. zoos use Augmented Reality to boost visitor engagement, education, and revenue.
8 Best Augmented Reality Stocks to Buy in 2025
By Moody Mattan August 12, 2025
Discover the 8 best AR stocks for 2025. Meta up 50%, Unity up 130%, NVIDIA up 68%. Complete analysis shows potential 150%+ returns by 2030. Investment guide inside.
Augmented Reality for Food Franchises: 10 Proven Ideas for Repeat Visits
By Moody Mattan August 11, 2025
From AR storefronts to menus and murals, see 10 proven AR ideas—each with real brand results—to increase repeat visits and loyalty for food franchises.
Ray-Ban Meta vs Oakley Meta: The Battle for the Best Smart Glasses
By Moody Mattan August 9, 2025
Ray-Ban Meta vs Oakley Meta smart glasses: Complete 2025 comparison of design, camera, battery life, AI features & price. Which AI glasses are right for you?
Ray Ban Meta Smart Glasses Tips
By Moody Mattan August 8, 2025
Unlock 10 hidden Ray‑Ban Meta tips—from live translation to Spotify Tap—that turn your smart glasses into a pocket‑free productivity powerhouse.
How to Use Virtual Reality to Paint Murals
By Moody Mattan July 28, 2025
The world of mural painting is undergoing a technological revolution. While traditional tools like projectors and transfer paper have supported artists for decades, virtual reality (VR) is emerging as a transformative tool that's changing how professional muralists approach their craft. This detailed guide explores how VR technology can streamline your mural painting process, reduce project timelines, and ultimately enhance your profitability.
25 Best Billboard Campaigns of 2025
By Moody Mattan July 14, 2025
2025 was a blockbuster year for out-of-home advertising, with billboards reimagined as immersive brand experiences. From classic static signs to anamorphic 3D displays and interactive AR billboards, top brands pushed creative boundaries to captivate audiences. Below we list 25 of the year’s most memorable U.S. billboard campaigns – spanning Fortune 500 heavyweights and viral sensations – and unpack why each knocked it out of the park (often winning awards or lighting up social media in the process). Enjoy this list of 2025’s best billboards, curated especially for OOH marketing pros!
Top 10 Social AR Marketing Campaigns of 2025
By Moody Mattan July 8, 2025
AR marketing has reached a critical inflection point in 2025, delivering measurable business results that outperform traditional digital advertising. AR campaigns now generate 3x higher brand lift at 59% reduced cost, with 70% higher memory recall and engagement times 4x longer than mobile video . The global AR advertising market is projected to reach $8.0 billion by 2029, making this the optimal time for Fortune 1000 companies to establish competitive advantages through strategic AR investments . Bottom Line: The 2025 campaigns below demonstrate that AR marketing delivers both viral reach and measurable ROI when executed strategically across Snapchat and TikTok platforms.
Brands Unlock ROI with AR Experiences on Snapchat and TikTok
By Moody Mattan July 7, 2025
Social augmented reality has shifted from novelty filters to a $342 billion market opportunity by 2037, with Fortune 1000 companies realizing a 460% return on ad spend and achieving 70% higher brand recall rates through targeted AR strategies. Early adopters are gaining competitive advantages that will be hard to copy as widespread adoption grows, making 2025 a crucial period for strategic investment. The convergence of mature AR technologies, widespread consumer adoption, and proven business outcomes has reached a tipping point for marketing leaders. With 75% of the global population expected to use AR by 2025 and AR campaigns consistently outperforming traditional digital ads by 200-300% , Snapchat and TikTok stand out as the most significant marketing platform evolution since social media first appeared. Companies adopting comprehensive metaverse marketing strategies are positioning themselves at the forefront of this shift.
2025 Trends in OOH Advertising
By Moody Mattan June 30, 2025
The Out-of-Home advertising industry has reached a pivotal point, with augmented reality technologies driving engagement surges of 300% , while the U.S. market exceeds the historic $10 billion mark for the first time. As traditional billboards become interactive experiences and measurement capabilities match digital advertising precision, Fortune 1000 brands are reimagining how they connect with consumers in physical spaces. Digital transformation has surged past expectations, with programmatic OOH projected to exceed $1 billion by 2025, while AR-enhanced campaigns see interaction rates over 30% in prime locations. The merging of 5G networks, AI-driven personalization, and privacy-focused measurement solutions is shaping an advertising medium that blends the trusted presence of traditional OOH with the accountability and targeting accuracy of digital platforms. Record-breaking market growth signals industry maturation The OOH advertising landscape has reached unprecedented scale and sophistication in 2024, setting the stage for explosive growth in 2025. Total U.S. OOH revenue hit $9.1 billion in 2024 , a 4.5% increase and the first time the industry has exceeded the $9 billion mark. This momentum continues with Q1 2025 already showing $1.98 billion in revenue, maintaining the industry's impressive streak of 16 straight quarters of growth . Global markets are expanding rapidly, with the worldwide OOH market projected to reach $50.52 billion in 2025 , fueled by a strong 4.84% compound annual growth rate. Digital OOH is growing even faster at 15.2% annually , expected to reach $26.57 billion globally as traditional static displays shift to dynamic, programmable formats. The spending patterns show a major shift in advertiser priorities. Digital OOH now makes up 34% of total U.S. spending , with annual growth of 7.5%, significantly surpassing traditional formats. This digital shift highlights brands' need for measurable, adaptable, and interactive advertising experiences that static billboards simply cannot offer. Fortune 1000 brands are leading this transformation , with tech giants like Apple, Amazon, and Google joining traditional OOH leaders such as McDonald's and Coca-Cola as major spenders. Notably, 25% of the top 100 OOH advertisers are now tech or direct-to-consumer brands , reflecting the medium's shift from broad-reach branding to performance-focused marketing.
Show More