Metaverse will have a direct impact on various industries and businesses are already leveraging the tech to earn huge profits. For businesses to take advantage of Metaverse on a large scale, conversational AI is a key in Metaverse. 1. Understand the Metaverse and where it stands today. 2. Understand how Metaverse will change the way businesses and people interact with each other. 3. The benefits of the Metaverse for brands everywhere. 4. The opportunities that can arise with the rise of the Metaverse and Web3. For more visit- https://yellow.ai/resources/articles/conversational-AI-metaverse-next-channel-for-brands-scale-digital-interactions

1. Conversational AI in
Metaverse: The Future
of Digital Experiences
WHITE PAPER

2. Contents
1. COVID-19 lockdown accelerating internet use
2. Semantic Web - The latest generation of WWW
3. Metaverse - The next channel of choice
4. Role of Conversational AI in Metaverse
5. What to expect when investing in Metaverse?
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COVID-19 lockdown accelerating
internet use
In 2021, Asians constituted the majority of internet users. 2,555,636,255 people in Asia are online,
which makes up 51.8% of the global internet population. Today, 63.2% of the world population uses the
internet. With a current population of 7.8 billion, approximately 4.93 billion people have access to and use
the internet frequently. From the year 2000 to 2020, the usage of the internet rose to 1266%. Virtual
environments have existed for quite a long time. Most people are now spending more time online than
they were three years ago (obviously due to COVID-19 lockdowns and work-from-home mandates)
leading to the growth of virtual realms. According to a study in Forbes, total internet hits have surged by
between 50% and 70%, according to preliminary statistics. Streaming has jumped by 12%. In Europe,
the spike in internet traffic has reached as high as 70%, which shows what the traffic surge could look
like in other regions.
Semantic Web - The latest generation
of WWW
Remember when the internet was read-only? The first version or web 1.0 was purely informational. One
could read information online and the overall interface wasn’t too different from wikipedia. Web 2.0, the
one we all currently use and know so well, is the second version, where we not only consume but also
create content. Tim Berners Lee envisioned Web 3 to be semantic; the future of web evolution. A
program that allows users to create, share, and connect content via search and analysis based on the
meaning of words rather than keywords or numbers.
Some technologists and experts have contrasted it with Web 2.0, wherein the content is centralized in a
small group of companies also referred to as "Big Tech". Ethereum co-founder Gavin Wood coined the
term in 2014. Technologists and journalists describe Web3 as a solution to concerns about the over
centralization of the web in a few "Big Tech" companies.
Some say that Web3 could improve data security, scalability, and privacy beyond what is currently
possible with Web 2.0 platforms. Bloomberg states skeptics say the idea "is a long way from proving its
use beyond niche applications, many of them tools aimed at crypto traders". The New York Times
reported several investors are betting $27 billion that Web3 "is the future of the internet".

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Web3 is the next generation of the internet that uses blockchain technology, decentralized autonomous
organization and runs on token based economics. Many early stage applications for web 3.0 exist already,
such as Brave browser, Wolfram Alpha and Metaverse. Today we are going to explore Metaverse, its
features and uses for a business as well as the role of AI in binding these at the intersection.
Metaverse - The next channel
of choice
Metaverse is a mixed reality made up of a combination of technologies and trends like AR, head-mounted
displays (HMDs), the Internet of Things (IoT), an augmented reality (AR) cloud, artificial intelligence (AI)
and spatial technologies; a persistent, immersive digital environment. An environment of independent,
yet interconnected networks that will run on some protocols for communications. This environment
enables persistent, decentralized, collaborative, interoperable digital content that intersects with the
physical world’s real-time, spatially oriented and indexed content.
These together will give rise to new technologies and trends, to form a complete metaverse solution.
Device-dependent interactions will be overthrown by the metaverse. New types of interactions and
business models across multiple applications will emerge. Examples of early stage solutions include
gaming, virtual collaboration, navigation apps, social media, and fungible and non-fungible tokens (NFTs).
The metaverse in its maturity will have a virtual economy of itself, enabled by digital currencies, NFTs or
some other equivalent. Conversational AI in metaverse is a new forms of digital business assets can
develop and speed up programmable economic models. Enterprises experimenting with the metaverse
can connect, engage with, and incentivize human and machine customers to create new value
exchanges, revenue streams, and markets.
By 2026, key rapidly advancing technologies, such as
digital twin, Internet of Things (IoT) platforms, smart spaces,
multimodal UI and advanced virtual assistants, will transform
how people interpret and interact with the world.

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If the current internet experience is two-dimensional–that is, you surf and scroll across it on a screen
metaverse is three-dimensional. You’ll be “walking” through it via connected headsets or glasses. There
could be one metaverse or many independent metaverses but one thing appears to be certain: The
metaverse would be an immersive next-generation version of the internet, likely rendered by virtual or
augmented reality technology. We'll be able to feel present, as if we're right there, no matter how far we
are. Some forms of hybrid work have become inevitable, and they will fuel ongoing interest in engaging
work-based virtual realms, which Microsoft will probably label “commercial metaverses.” Microsoft has
already begun floating the idea of having avatars in Teams.
More gripping content being shared over speedy connections, cryptocurrencies, NFTs and blockchains
will drive online growth even faster in the next five years. For example, in 2020, the global online gaming
market created an estimate of $21.1 billion in revenue, which translates to a record 21.9% growth
compared to the previous year. Currently, there are about 1 billion online gamers worldwide, with China,
South Korea and Japan having the biggest online gaming reach among the population. In 2025, they
project online gamers to surpass 1.3 billion. Microsoft is paying $69 billion for Activision (approval still
pending as of early February 2022) to up its own “game” in this arena.
By 2026, 30% of the organizations in the world would
have products and services ready for metaverse,
up from negligible now
- Gartner

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A complete metaverse could consist of some of the elements, as shown in the following table.
Elements of a Metaverse
Application/Interface Content Infrastructure
Workplace (where people
working remotely could attend
conferences and meetings
Shopping for digital clothes,
footwear and bags, etc
Concerts and social and
entertainment events
Gaming
Social media with people
of similar digital affiliations
Digital commerce, wherein virtual
products and services will be sold,
Virtual reality, virtual art, virtual
cars and more are examples
NFTs enable new and more
decentralized actors to use
programmability to create
new value exchanges that
transform industry structures.
Digital human:
Metaverse will need people
to seamlessly move into skin
(avatars) or own assets (for
example, NFTs) across
different applications.
Spatial anchoring for
persistent, geoposed
content
Decentralized, P2P
networks
Interoperability protocols to
make publication, manage-
ment, delivery
Hierarchies for data
capture and protection
Digital ethics guidelines
Digital Currency
Marketplace/
Digital Commerce
Concerts and social
and Entertainment
Events
Online Shopping
Non-Fungible
Tokens (NFTs)
Workplace
Infrastructure Metaverse
Social Media
Device
Independdence
Digital Humans
Gaming
Digital Assets
Natural Language
Processing
Source: Gartner

7. The metaverse is uncharted territory. Some people may squirm at the chance of running a new channel,
while others may be stoked, but it's inevitable that companies may leverage the metaverse as a customer
support channel in all fascinating ways. Consider how mobile messaging apps have developed as a go-to
channel for customer care.
Role of Conversational AI in Metaverse
The demands from metaverse would be to generate virtual spaces on-demand for a global audience
which would need the help of AI to scale. Just the way Meta CEO launched Builder Bot; another
technology that he thinks will be crucial to the company’s vision of creating an immersive environment.
This voice bot allows users to change their virtual surroundings with voice commands. An early version
of the concept, called Builder Bot, was displayed at a virtual event detailing Meta’s latest AI research.
Conversational AI has a huge role to play in the metaverse.
The metaverse is about the inescapable dematerialization of physical space, distance, and objects, which
includes 3D games like Fortnite on our game consoles, Beat Saber in our VR headsets, and Roblox on our
computers. It also includes Alexa in our kitchen, Zoom in our virtual offices, Clubhouse on our phones, and
Peloton in our home gyms. What happens when physical space is dematerialized? What was once
scarce may become abundant. In a game, you can dream of being a rock star, a soldier, a race car driver,
or anything you might imagine. Imagine what happens when you apply this to known situations. For
example, a product launch event in physical space can sell only a few seats in the front row — but a virtual
event can create a personalized plane of existence around each individual in which you always enjoy the
best seat in the house. In physical world interactions, metaverse will supply real-time, interesting,
actionable information across scenarios.
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Big tech experts predict the metaverse to become
the successor to mobile, making customer service
virtual-fırst. This fuels the need for Conversational AI.

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Here’s how conversational AI can play a big role in the Metaverse, especially for brands.
1. Interactive retail and commerce
With the help of AI and metaverse technology, interactive experiences such as a demonstration in the
biology lab, a museum or a performance park are possible. For example, the instructor can log in and
perform the demonstration for people who are located miles away because of the metaverse technology.
Similarly, the demonstration can also be used for upselling and cross-selling. Retail can extend its reach
to an immersive shopping experience that allows for more complex products that have been a challenge
on mobile device applications. Business leaders, especially in the consumer products/services space,
should be solidifying plans for “virtualizing” (tokenizing) their artifacts. They should also begin exploring
how their enterprises might participate in future digital realms, even if they are only extensions of current
e-commerce efforts.
2. Industrial training and repair
Logistics can be an expensive affair especially when enterprises are trying to meet margins by cutting
costs where necessary. When it comes to highly niche arenas such as airplane craftship or the rig
machineries that are the size of buildings, damages need a lot of resources to replace the works. In order
to get the situation up to scale again, conversational AI can take on the task of training new people and
helping with one-off repairs that would otherwise need human experts sourced in. People can save their
time that would otherwise be spent on teaching new employees. Real world conversational AI examples
are already taking off across the globe.
3. Wayfinding
Whether you’re creating wayfinding for a stadium, school, department store or theme park, there are
some core wayfinding principles that must be considered in order for visitors to navigate themselves
along the customer journey. The value of an effective wayfinding system is not only determined by a
positive visitor experience, but by how you maximize on the customer’s route and dwell time.
Conversational AI can turn this entire experience into a strategic route making and creating a wayfinding
‘story’ which ensures that visitors are informed of what products/attractions/facilities are available and
potentially increase revenue.

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Education
Imagine “teleporting” from an office meeting into a social gathering, into a history class or into an
underwater tour — within any given interface/application. Although current metaverse experiences will
not completely replace current digital interactions via apps, websites and so forth, it is likely to pave the
way to new types of interactions and business models to optimize on these new use cases. This can
result in interactive learning. Education will be greatly enhanced when we can change the environment
anytime to anything.
Virtual events and experiences
Virtual events or experiences have gained a lot of popularity over the last 18 months. Today, we can
extend more collaborative and immersive offerings to virtual events. If a company is performing an event
tour at 10 different locations at the same time, conversational AI can help scale the experience with the
help of a voice bot. Gamification in all ventures of the metaverse are likely to increase and to help scale
such systems, AI can prove effective.
What to expect when investing in
Metaverse?
Metaverse will have a direct impact on multiple industries such as communications and media, retail,
electronics, semiconductors, manufacturing, engineering, education, and banking. It will also have a direct
impact on product and service marketing, branding, and sales roles in the organization, as metaverse is
the next frontier for online interaction.
Creation of immersive virtual worlds
AI can create environments, instances, slots and virtual spaces on-demand based on dynamic needs of
the concert, event or the entertainment experience allowing businesses to never have the issue of
inventory like in the real world. The cost to change virtual spaces, add or edit from environments is almost
nothing so businesses can easily expand or adapt as per what is working. For example, businesses can
have their own voice bot like builder bot for Meta that they can use for a range of activities, starting from
creating their own event.

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Conversational commerce
Businesses can conduct commerce through NFTs. Coca-Cola, Stella Artois, Visa and many other
consumer product companies already have digital nonfungible tokens (NFTs) and are leveraging the
intangible value of their brand for marketing and to drive new revenue streams. Virtual goods, properties
and accessories are taking off as digital humans move from skin to new realms. The complete
management of inventory can be scaled and sales can grow with intelligent upselling through
conversational AI.
Intelligent upselling of virtual goods through Dynamic AI agents.
Cross-selling basis context.
Proactive recommendations basis past conversation analysis.
Creation of avatars for audiences.
Creation of virtual stores.
Creation of events.
Providing customer support and allowing people to self-serve queries.
Virtual order management.
Avatars
Audiences are key to the metaverse and an avatar’s accuracy will indicate the quality of experience for
you and other people. An AI engine can analyze 2D user images or 3D scans to generate a highly realistic
simulated rendition. A variety of facial expressions, emotions, hairstyles, features caused by aging, and
more can be added to make the avatar more dynamic. Companies like Ready Player Me are already using
conversational AI to help build avatars for the metaverse, and Meta is working on its own version of the
technology. Similarly enterprises everywhere can create their employee avatars and let them engage,
interact and work together through virtual workplaces.
Virtual classrooms
Some organizations are already exploring the idea of hosting virtual classrooms in the metaverse for edu-
cational purposes. Students will be allowed to choose their own course of studies or select projects and
tasks scheduled as live VR sessions, which could take them anywhere from Ancient Greece for a history
class or let them get up and close with the planets for astronomy.

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Workplaces
Since most companies have the mandate to work from home given the COVID-19 pandemic crisis, many
people have not seen their colleagues in weeks, months or since it all began. Metaverse will be able to
house companies and let them have virtual workspaces that come with no infrastructure cost at all. The
ability to still be there with colleagues in a shared room, interacting with each other while having all the
meeting notes put down for them by a virtual assistant is not a distant dream.
For employees everywhere this means that they can have better collaborations. For enterprises it means
saving infrastructure costs, maintenance costs, and opening up new opportunities for people as space
designers. In the metaverse, people can create highly realistic 3D avatars – that is, virtual representations
of themselves – mirroring body language as they speak, entering VR and AR environments using those
avatars. Virtual assistants can help people with workplace management such as application of leaves,
scheduling virtual meetings, managing employee information, etc.
Creation of jobs
Conversational AI is going to play a huge role in creating new job opportunities for people everywhere.
While AI will take on some of the mundane and repetitive tasks, people can be left to do creative work.
With the rise of the Metaverse, all kinds of new opportunities are set to rise with it like the need for a
virtual space designer as opposed to an interior designer. Conversational AI can also be used to check on
malicious activities in the Metaverse and put a stop to it besides recognizing those patterns better and
becoming better for any future threats that may arise. Conversational AI will be responsible in testing and
building game plays and scenarios in games based on past interactions on previous scenarios. This will
free up programmers to work on complex use cases within the games.
Multilingual capabilities for audiences
One of the primary use cases or major subsets of AI involve natural language processing and natural
language generation. In the metaverse where the global audience can interact with each other, people
would need to be able to converse with each other even with a language barrier. AI will be responsible
for breaking those barriers. AI can help break down natural languages like English, convert it into a
machine-readable format, perform analysis, arrive at a response, convert the results back into English
and send it to the user. This entire process takes a fraction of a second – just like a real conversation. The
results can be converted to any language as well allowing people of all ethnicities to interact.

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About Yellow.ai
Yellow.ai is the world’s leading Total Experience Automation platform powered by Dynamic AI agents,
that enable enterprises to have enriching, delightful and personalized interactions with their customers
and employees across their preferred choice of channel, language and time. Dynamic AI agents are
advanced virtual assistants that automate digital (text), conversational (voice) and unstructured
(documents) workflows to deliver a connected experience across all human interactions in real-time,
across channels and at scale.
The platform is trusted across 70+ countries by 1000+ enterprises, including Domino’s, Sephora,
Hyundai, MG Motors, Bajaj Finserv, Food Panda, Bharat Petroleum, Waste Connections US and Tata.
Weaving in the best of AI and human intelligence to automate customer and employee experience, the
company aims to democratize AI through its no-code/low-code bot builders, omnichannel virtual
assistants, and ticketing automation suite. Yellow.ai has raised more than $102M from blue-chip
investors and has offices across six countries. Visit www.yellow.ai for more information.
Visit www.yellow.ai for more information. Contact us at contact@yellow.ai
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