Many popular technologies today are the product of several technological and economic factors converging at the right time. A recent example is the rise of generative AI, which rapidly transitioned from an emerging technology to mainstream phenomenon, sparking revolutionary changes across various industries and societies.
Similarly, extended reality (XR), which includes augmented reality (AR), virtual reality (VR), and mixed reality (MR), has long been touted to transform immersive experiences on devices. While adoption among consumers is steadily increasing, the true impact of XR to date has been seen across a variety of business use cases, including training, manufacturing, communication, content creation and retail.
According to the PWC “Seeing is Believing Report”, the growing adoption of XR technologies across businesses could boost global GDP by US$1.5 trillion, which is nearly 2 percent of overall GDP. Through integrating XR into their processes, businesses will see significant productivity and efficiency improvements, along with substantial time and cost savings.
While challenges around wider XR adoption still exist, the tech industry is making great strides to address them, paving the way for XR to become a more mainstream technology, not just for businesses but for consumers too.
Senior director, consumer computing segment, Client Line of Business at Arm.
The XR challenges and how the industry is addressing them
One of the primary computing challenges with XR has always been meeting the power efficiency requirements of small wearable devices that need to be always-on. Some early XR wearable devices suffered from short battery life while untethered, limiting their practicality for extended use. The industry has responded by investing in advanced battery technologies and power management systems, leading to more efficient, longer-lasting XR wearables.
Early XR wearable devices also faced security and privacy challenges. Initially, businesses were hesitant to adopt the devices due to potential vulnerabilities in data handling and encryption. However, with the integration of enhanced encryption protocols and secure data management practices, XR devices are now far safer and more secure. The security improvements allow companies to integrate XR technologies into their operations with greater confidence, knowing that sensitive information is well-protected.
The final challenge was the lack of ecosystem support for XR technologies. Developing quality applications that met business expectations was both expensive and complex, hindering widespread adoption. Today, the industry is addressing this by creating more accessible development tools and platforms. These simplify the process of developing and deploying XR applications, enabling businesses to create tailored solutions that meet their specific needs.
Ongoing technological breakthroughs in XR
Beyond these challenges, companies are investing heavily in research and development to improve XR wearable devices and elevate the user experience. Hardware advancements, including touch screens and camera miniaturization, as well as software improvements in applications and operating systems, have created significant opportunities for XR wearable devices to become more mainstream.
AR smart glasses are one device type where there has been plenty of interesting technology innovation during the past year. For instance, Snap’s fifth-generation Spectacles, Meta’s next-generation Ray-Ban smart glasses, and Meta’s Orion smart glasses are all examples of how XR wearables are evolving to meet business and consumer needs, with features like advanced AR displays and real-time AI video processing. More specifically, Meta’s Orion glasses now offer lightweight, immersive hands-free AR, with future versions expected to add social awareness features.
Wider innovations in lightweight materials and better batteries are making XR wearable devices easier to use and wear. New AR smart glasses entering the market are now adopting ultra-thin silicon carbide waveguide technologies that not only enable high-definition displays, but also dramatically reducing the thickness and weight of the devices. This marks a significant breakthrough in AR technology. AI features are also enhancing the XR wearable device experience, making them more personalized and context aware.
How AI will transform XR Technology
In fact, new compact language models are becoming highly influential across XR wearable technologies. These models, designed to run efficiently on smaller devices, enable real-time natural language processing and interaction, allowing users to interact with XR applications using real-time voice commands. For example, in manufacturing, workers can use a voice command to get information about assembly instructions or safety protocols without taking off their XR headsets.
Compact language models are also transforming XR experiences for consumers, businesses and healthcare, making them more immersive and interactive. For consumers, this is enabling them to create and consume new types of content via XR wearables. Meanwhile for businesses, XR wearable devices are providing employees with highly interactive real-time feedback and guidance during training. This feedback helps improve training outcomes and reduce errors, especially in manufacturing and medical sectors, leading to higher levels of efficiency and safety. Finally, in healthcare, clinicians can use XR to augment different treatments during medical procedures, reviews and training, leading to improved patient outcomes.
The next wave of digital transformation
Looking ahead, the combination of XR and AI will continue to unlock new possibilities, driving innovation across a variety of industries. With ongoing improvements in power efficiency, security and software support, and advancing technology capabilities, XR wearable devices are likely to see rising adoption among businesses and consumers. While we have yet to hit the XR tipping point, the journey ahead appears to be promising, as more consumers and businesses embark on the next wave of digital transformation.
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