A Responsible Future for Immersive Technologies

WAKING
UP TO
A NEW
REALITY
Building a responsible future for
immersive technologies
1Copyright © 2019 Accenture. All rights reserved.

EXTENDED
REALITY (XR)
IS FINALLY
COMING
OF AGE
Extended Reality (XR) includes
virtual reality (VR), augmented
reality (AR), haptics, holograms
and an expanding range of
immersive tools that use and
enhance our natural senses.
XR tools blur the boundaries
between the physical and virtual
worlds, they are opening up vast
new markets and set to transform
our day-to-day lives.
We are about to break one
of the longest and most
eagerly-awaited hype
cycles in tech history.

While XR is still seen as a consumer and gaming phenomenon, opportunities in industry are already overtaking and set
to rise sharply over the next four years. By 2023, industry spending on XR is expected to be triple consumer spending.
2018 2019 2020 2021 2022 2023
*Compound Annual Growth Rate, 2018-2023
GROWTH
IN INDUSTRY
SPENDING*: 134%
AR AND VR SPENDING FORECASTS
(GLOBAL, US$ BN)
Industry Spending
Consumer Spending
GROWTH
IN CONSUMER
SPENDING*: 69%
9
21
46
83
121
7
13
20
31
40
4
5
NOT JUST FOR FUN AND GAMES
Source: IDC Worldwide Semiannual Augmented and Virtual Reality Spending Guide, May 2019.
Notes: ‘Industry Spending’ includes AR and VR spending in 19 industries. ‘Consumer Spending’ primarily includes spending by consumers on games and
entertainment (video), but also other direct-to-consumer use cases – for example consumer spending for a virtual health counselling session via AR/VR.

The number of patent applications* for AR/VR innovations has exploded
since 2014, rising almost five-fold between 2014 and 2016.
THE PATENT RACE IS ON
Source: Accenture analysis based on 22,192 priority patents* found using Quid analysis of data extracted from the Derwent Innovation database, from Clarivate Analytics.
Notes: Figures for 2017 and 2018 are not shown because patents are confidential for up to 18 months after their application. *This measure is for “Priority Patents” only, which covers
what is considered to be a new category of invention, not minor variations of that invention. Broader definitions would significantly multiply the number of patents indicated here.
0
6.000
3.000
2006 20072005 2009 2014 201520112008 2010 2012 2013 2016
NUMBER OF PATENT APPLICATIONS FOR AR/VR INNOVATIONS
(GLOBAL, 2005-2016)
5x

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
38 45 19
91
29
86
167 194
394 430
884
1448
237%
TOTAL FUNDING RECEIVED BY AR/VR STARTUPS
(US $MN, 2005-2016)
Investment in AR/VR startups has begun to experience its long-awaited surge, growing by 237% between 2014 and 2016.
STARTUP FUNDING IS EXPLODING
Source: Accenture analysis based on 1,215 AR/VR startup investments found using data from CB Insights.
The above analysis covers all private equity and angel investments, including debt, equity and grants.
Note: Figures for 2017 and 2018 are not shown as investment information is currently available for fewer than 60% of the total investment rounds.

Forecasts of 5G connections per capita give an insight into the timing and degree to which different countries will benefit from XR.
INFRASTRUCTURE ROLLOUT
WILL VARY ACROSS THE G20

Worker Productivity
From designing prototypes in
virtual teams, to augmenting
assembly-line and warehouse
workers, XR is boosting
workforce productivity across
all parts of industry value
chains.
Designers at Volkswagen can
submerge themselves into
virtual worlds, more vividly
experiencing the car’s look,
feel and drive—spatially, in
3D—thanks to XR tools.
BENEFITS ARE ALREADY
CLEAR TODAY
XR tools are transforming how industries operate and create value for both customers and employees
Training
IDC expects spending on
VR/AR training to grow at
46% between 2018 and
2023, reaching US$8 billion
by 2023. VR and AR have
different strengths but both
enhance and accelerate
experiential learning.
BP’s use of VR training
allowed engineers to
complete offshore drilling
operations tasks 40% under
budget and 4 months ahead
of schedule.
Customer
Experience
AR lenses and filters are now
commonly used for social
media marketing, and
customers are already able
to use VR to tailor cars or
houses to their liking before
they are built.
Lowes’ in-store VR Holoroom
allows customers to sample
household products before
making a purchase.
Social Sphere
XR is educating children by
taking them to places they’ve
never seen, providing
therapies for those with
physical or psychological
disabilities, and helping health
workers learn new skills.
Accenture has developed an
award-winning VR experience
for child welfare caseworkers,
helping them interpret signs of
safety and risk.

Source: Accenture Research analysis of national workforce data covering 432 occupations across 14 industries in 14 G20 countries. Note: See Appendix 4 for full methodology.
XR PROMISES TO BOOST PRODUCTIVITY
AND AUGMENT WORK
Workers across all industries can
boost productivity through XR.
Opportunities are strongest in
healthcare and social services,
manufacturing and construction.
We analyzed workforce data for
432 occupations across 14
industries in 14 countries to
assess the impact of XR on
specific work tasks. It is interesting
to see the range of industries that
stand to gain, as XR augments
workers’ judgment, decision-
making, speed and accuracy.

XR technologies will test companies, consumers and societies with a deeper set of challenges.
SENSING THE NEW RISKS
Personal data will go beyond
people’s credit card numbers,
purchase history, or social
media activity. Their feelings,
behaviors, judgments and
physical likeness will all be
exposed to potential
cybertheft and manipulation.
1. MISUSE OF
PERSONAL DATA
2. FAKE
EXPERIENCES
When news and information
are consumed through
immersive experiences, it will
be harder to separate reality
from falsehood, making it
easier to profoundly influence
behaviors, opinions and
decisions.
3. CYBERSECURITY
Not only could avatars be used
to create new forms of identity-
related crime, but ransomware
and extortion risks will rise as
more critical tasks, like surgery
and engineering, become
dependent on smooth, real-
time XR procedures.

XR technologies will test companies, consumers and societies with a deeper set of challenges.
SENSING THE NEW RISKS
Over-dependence could
significantly impact mental
health and wellbeing by
extending the gap between
reality and what life could be
like. New mental-health
disorders related to extended
periods in virtual worlds are
still being explored.
Trolls could go from
intimidating with words on
social media to physically
intimidating targets in a virtual
world with avatars. And
undesirable behavior that is
normalized in a virtual
environment can creep into
real-world behaviors.
Unequal access to new
educational or working
experiences amplifies social
divisions. And increasing time
spent in virtual worlds can
disengage people from real-
world societal problems.
4. TECH
ADDICTION
5. ANTISOCIAL
BEHAVIOR
6. DIGITALLY
DIVIDED WORLDS

Business leaders have a responsibility to act now, whether that’s designing how XR tools will ultimately work, the rules for
using them, or the business models that support them. XR will soon integrate into our daily work lives. Retrospective fixes
will cost dearly. Therefore, firms are obliged to take pre-emptive, preventative action.
Responsibility and ethics must be designed into the way XR tools are built and deployed, starting today:
BUILD YOUR EARLY
WARNING SYSTEMS
Instill a culture of responsibility in
which leaders and employees
ask forward-looking questions as
a matter of everyday, habitual
behavior. The right questions will
raise early-warning flags about
unintended consequences of XR
design or usage.
A NEW SENSE OF RESPONSIBILITY
FOR BUSINESS LEADERS
DRAW ON DIVERSE
EXPERTS FOR
RESPONSIBLE DESIGN
Businesses must extend their
ecosystem of partners to include
neuroscientists, mental health
experts, sociologists and
behavioral theorists to aid the
responsible design and use of
XR tools.
SUPERCHARGE YOUR
WORKERS
Target XR investments to
improve productivity, training and
creativity. Roles most exposed
to automation often present the
best opportunities to augment
with XR, turning “jobs at risk” into
“jobs of the future”.

Business leaders must encourage policymakers to progress three main priorities:
ENSURE INCLUSIVE
AND AFFORDABLE
ACCESS
Extend powerful infrastructure
(like 5G networks) to make XR
experiences as widely available
as possible, at appropriate prices,
especially for the provision of
health, education and social
services.
THE ENABLING POWER
OF POLICYMAKERS
INCENTIVIZE LOCAL
INNOVATION &
ENTREPRENEURS
Enable small businesses to not
only use XR tools and
experiences, but also participate
in their development, ensuring
locally-relevant solutions.
STIMULATE RESEARCH
& DISCUSSION
Convene relevant experts from
across sectors and disciplines to
build the necessary
understanding and principles that
allow XR innovation to flourish
amid appropriate safeguards.

https://www.accenture.com/us-en/insights/technology/responsible-immersive-technologies
To learn more about how Accenture can help your organization
prepare for the imminent world with Extended Reality, contact:
CONTACT INFORMATION
Armen Ovanessoff
Report Author.
Principal Director, Accenture Research
armen.ovanessoff@accenture.com
Francis Hintermann
Global Managing Director of Accenture
Research
francis.hintermann@accenture.com
Laurence Morvan
Chief Corporate Social Responsibility Officer, and Chief
of Staff, Office of the Chairman & CEO, Accenture
laurence.morvan@accenture.com
Marc Carrel-Billiard
Senior Managing Director, Accenture
Labs and Accenture Extended Reality
marc.carrel-billiard@accenture.com

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