According to Paul Thomas, a seasoned technologist and founder at Somnia, artificial intelligence (AI), like the metaverse before it, is currently experiencing hype. This hype cycle will continue to be in vogue before eventually waning. Thomas argues that combining the metaverse with AI can potentially “make virtual environments interactive and personal.”
AI Hype Cycle Expected to Continue
The Somnia network founder also argued AI has the potential to reduce the time and effort required to “build complex virtual worlds in content creation.” He cites Nvidia’s Gaugan as a tool that can overcome the skill barrier.
While Thomas is optimistic about the metaverse’s potential contribution to the global gross domestic product (GDP), he finds one study’s projected contribution of $3 trillion by 2031 “a bit crazy.” Instead, he sees the $500 billion to $1 trillion range as a more feasible projection.
In his written responses shared with Bitcoin.com News, Thomas discusses why and how his organization continues to promote metaverse adoption and industry growth. He also touches on how Somnia approaches the metaverse’s fragmentation problem. Below are the rest of Thomas’ answers to the questions sent.
Bitcoin.com News (BCN): Google Trends’ data shows a significant decline in metaverse-related activities over the past few years. The drop in activity has almost returned to the pre-2021 levels. This has led some to assume the metaverse is dead, or at least, it has faded into oblivion. How do you view the current state of the blockchain-powered metaverse? What may have dampened the metaverse enthusiasm?
Paul Thomas (PT): The metaverse as a concept is not top of people’s minds. However, shared digital experiences are growing constantly. Take gaming which continues to grow at x%. I would say experiences like Roblox, Fortnite and Minecraft are all Metaverses. You have brands that continue to do activations trying to get the attention of Gen Z.
Lack of engaging sticky consumer experience. We live in an attention economy where people have an abundance of things to do online. You need to provide experiences that engage users. These experiences must go beyond what is in the market. Most existing blockchain-based metaverse platforms haven’t cracked that yet. We believe our partner MSquared is onto something big. They are making large-scale crowd experiences that can feel like being in a real stadium. These experiences will cross the chasm and draw more people to the metaverse.
BCN: Per Google Trends data, AI searches have been on the rise since 2022, coinciding with the decline in metaverse awareness. Do you see any relationship between the alternative trend pattern between the metaverse and artificial intelligence (AI), or is it just a coincidence that one seems to fade as the other gains momentum?
PT: With trend data, you are seeing what is in vogue and hyped right now in the technology sphere. These trends wax and wane, and it’s very accurate to say AI is much more hyped right now than the metaverse. I think the AI hype cycle will continue to be in vogue for a while. But, metaverse platforms must engage consumers to become relevant again. Think about technology hype cycles. We are in the trough of disillusionment for the metaverse. Now is the time to build and show its real value.
BCN: Do you think the metaverse and AI are compatible and can be combined to produce advanced tech solutions? Could you give some examples of any such combinations or collaborations between the metaverse and AI, if they exist?
PT: AI will be used in the metaverse. It will make virtual environments interactive and personal. AI-powered virtual assistants can guide people through complex journeys. They give custom recommendations and nuanced responses. The responses change based on individual preferences and behaviours. An AI agent in a virtual store can use past customer interactions. It can also use their preferences to recommend products. This makes shopping easier and more personalized. AI could also allow immersive games and storytelling to be narrated via AI. It would change the story based on the user’s progress. This way, each user’s experience could be unique.
AI can help reduce the time and effort required to build complex virtual worlds in content creation. NVIDIA’s Gaugan is one such tool that reduces the skill barrier. It lets users create detailed, realistic scenes from basic sketches. This enables more people to create content without technical abilities. This democratization of content creation leads to a steady flow of new and varied contributions. They keep the metaverse exciting and always changing.
Metaverse Moderation is another zone that AI benefits. We cannot risk users feeling unsafe or unwelcome in our virtual spaces. AI filters can identify and rectify offensive language or behaviour at lightning speed. They can detect any wrongdoing, toxic behaviour, or harassment. They also catch violations of the community guidelines and rules. This keeps a healthy virtual world for all its users. This becomes even more useful when you imagine 100,000’s of creators making content for the metaverse. You need AI to moderate that content to check it’s safe and doesn’t infringe on copyright. Allowing the experience owners to filter out content not suitable for their experience.
BCN: Despite the metaverse sector losing steam, your project Somnia has reportedly continued with developments aimed at promoting the adoption and growth of the industry. Can you highlight the reasons behind your continued pursuit of a realizable metaverse ecosystem, shedding light on the unique approach of your solution in promoting metaverse adoption?
PT: It ultimately comes down to our belief that the Metaverse is a positive for humanity. It gives people a way to connect online in a meaningful way that helps bridge the large amount of isolation in the world today. Take Roblox for example. You have stories of kids in school from very different backgrounds. They socialize and bond over the shared experiences they have within Roblox. This unity we believe can help the world be less divided.
The second part is creating a new raft of jobs for people. The great thing about these jobs is that they are location-independent. Everyone with an internet connection can do them. They can also be deeply creative, creating experiences and items to entertain and delight others. We believe this will be a new centre for the world economy and help promote equality globally.
We are taking an open approach. We believe it will create a system where people work together. Combined they will build something bigger than the parts. Today, most metaverse platforms are walled gardens. All content is stuck in proprietary places. This stifles innovation and makes people unable to make viable businesses in the metaverse. Even the blockchain metaverse is walled off. Assets only work in their metaverse. We believe you need an interoperable open ecosystem where creators can define their own economics to make viable businesses.
BCN: The reality of the metaverse landscape today is that it’s still highly fragmented. What steps are you taking to make it an interconnected, collaborative and equitable virtual space?
PT: We are creating a protocol to enable interoperable content between metaverses. This means a creator can make an item once, like a digital baseball cap. Then, it can move across all experiences. This is essential for a true metaverse economy to exist. If you buy an item and can only use it in a small set of experiences, it is quite a tough proposition for a consumer to overcome. If I have many options, it becomes like buying items in the real world.
We are also creating systems that will enable value-sharing between participants. This means if you design a really cool piece of code that lets people fly, others could reuse that, and you would get a royalty from its use. We believe we make people more likely to work together as it aligns with incentives.
Finally, any experience or content built on the Somnia network is fully sovereign. This means creators control their economics. They control their front door, and all related to their experience. This is very different from other approaches. They require land or currency. Or, they are closed platforms where the content only works.
BCN: A 2022 study projected that the metaverse could contribute $3 trillion to the global GDP in 2031. Another report in 2023 cited AI as a means to supercharge metaverse development. In your opinion, what is your projection of the metaverse industry for 2030?
PT: $3 trillion sounds a bit crazy to me. I would put it more in the $500b-$1t range. The reason is that the “metaverse industry” is about $75b a year (Statista). Assuming a 40% growth year on year (which makes sense to me given it’s a high-growth sector) would put it at about $550b in 2030. For me, the upside case of one trillion comes from accelerated growth due to AI content creation accelerating the amount of content and what ultimately will be more killer apps for the metaverse. We haven’t even seen how this will affect the market yet.
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