How AI and XR Will Reshape Our Reality by 2025

The realm of Extended Reality (XR) is entering an intriguing phase in 2024, marked by high-profile promises and noteworthy advancements in hardware technologyYet, the tangible outcomes remain fewAmong the key players, it is Apple’s unveiling of the Apple Vision Pro that stands out, but as the year comes to a close, it appears that interest in the device has waned significantly.

This scenario sets the stage for 2025, with a burgeoning belief that several manufacturers will begin transforming their prior declarations into viable productsFurthermore, some of the prevailing trends from 2024 are expected to carry over into the new yearChiefly among them is the omnipresence of artificial intelligence within XR, but its application will likely evolveRather than merely serving to concoct fantastical virtual reality scenarios, AI could become a central force behind the innovation of new hardware.

The continuous evolution of technological trends suggests that XR applications in 2025 will offer even more realistic digital environments.

1. The surge of smart glasses, yet no real AR products in sight

   Back in 2017, when Magic Leap made its debut, I ventured some predictions about the future of XR: initially, clear AR glasses would primarily function as display devices

   Advertisements

   However, as AI continued to progress, the capabilities of these gadgets would eventually experience a qualitative leapTo my astonishment, the maturity of AI components outpaced the emergence of functional display-enabled glasses, and a segment of “non-display” smart glasses found their niche in the market.

   Meta's smart Ray-Ban eyewear exemplifies this trend, demonstrating that consumers remain engaged with glasses lacking built-in displaysAt CES, several manufacturers showcased diverse approachesFor instance, Chinese company ThunderBird presented their V3 AI shooting glasses, equipped with a hawk-optical lens, a Sony IMX681 sensor, and a 5P custom optical lensThe glasses support 4K photo capture, and 1080P horizontal and 1440P vertical video recordingOn the AI front, the ThunderBird V3 comes with a proprietary large model, enabling a response time of 1.3 seconds and boasting an impressive 98% recognition accuracy.

   As we look toward 2025, these "purely smart" glasses might proliferate in various forms

   Advertisements

   Yet, a critical question remains: can they sustain long-term growth amid the market's rush to develop display-enabled alternatives? Signs indicate that Meta may introduce a pair of glasses with a basic heads-up display (HUD) this yearGiven the strong collaboration between Meta and Ray-Ban, this product could make a significant impact in the marketplace.

2. XR headsets: A competitive market with no groundbreaking innovations

   There's no need to await revolutionary breakthroughs in hardware this year, yet a multitude of players are entering the frayIn recent months, Meta has rolled out the Meta Horizon OS, shortly followed by Google’s introduction of the Android XR platformThe ongoing rivalry between different headset manufacturers and the priorities consumers exhibit during selection will likely capture industry attention.

   Samsung has also revealed its concept for XR glasses, dubbed Project Monahan, yet details surrounding this initiative remain scant, with an anticipated launch later this year.

   As has become customary, Meta continues to carry expectations of spearheading market changes

   Advertisements

   While some insights into their long-term strategy (the Orion project) have surfaced, the outlook for the XR headset niche, particularly regarding “transparency mode,” remains murkyThe company has abandoned its Quest Pro 2 but opted for the more affordably priced Quest 3S, piquing curiosity about their next moves.

   Considering the variety of prototypes showcased over the past six months and Andrew “Boz” Bosworth's discussions surrounding external processing units—given that device design is crucial for the social experience—there's a mounting expectation that Meta might debut an external “processing sphere.” This device could wirelessly transmit applications and graphics data, significantly reducing the headset's bulk for a more streamlined design.

3. Digital twins—virtual replicas of people

   For over a decade, discussions surrounding XR have been intertwined with the quest for a “killer app.” However, the true killer app is not a singular application but instead revolves around communication and interaction

   • Tianqi Lithium Faces Potential $1.2 Billion Loss
   • Gold Prices Surge to Record Highs in January
   • Dual Strategies to Bolster Cross-Border E-Commerce
   • France Faces Persistent Economic Risks
   • Goldman Sachs Embraces Open-Source AI

   Meta is keenly aware of this and is tirelessly working toward that goal.

   One particularly noteworthy breakthrough is the Codec Avatars technology, meticulously developed by Meta over the yearsIn 2023, Lex Fridman conversed with Mark Zuckerberg using their respective Codec Avatars, signaling the potential for this technology to soon be accessible to the publicWhen glasses such as the Orion finally hit the market, the authentic power of Codec Avatars will gradually emerge, and we may find ourselves on the cusp of widespread digital “human replicas.”

   I envision a future where individuals not only accept their hyper-realistic digital twin but also desire the ability to transition seamlessly between their virtual persona and physical selvesTo facilitate this, we've devised a system that permits users to toggle between a pre-set virtual avatar and a real-time holographic representation captured by cameras, catering to the desire for different self-representations in varied contexts.

4. Widespread adoption of Gaussian point cloud rendering technology

   In recent years, leveraging Neural Radiance Fields (NeRF) and Gaussian Splatting technology to swiftly generate 3D digital models of personal spaces is gaining market traction

   

   Users need merely a smartphone to construct effortless 3D representations of their surroundings, which can subsequently be experienced in virtual realityMeta and Niantic are heavily investing in this direction, with anticipated significant advancements in optimization and visualization this yearMeanwhile, academia is continuously striving to create highly realistic digital environments.

   However, a pressing question arises: what comes next once visual fidelity reaches its peak?

   The genuine value of digital twins transcends mere accuracy—they hold immense potential for varied interactive applications within their frameworksFor instance, we are currently working on establishing a template system that allows users to easily create diverse interactive experiences in virtual spacesAdditionally, we are exploring ways to further enhance the functionality of these environments, breaking free from the constraints of real-world physics—such as questioning the need for a ceiling or why walls can’t be fluid and interactive.

5. The conflict between quality and quantity of content

   With numerous reports detailing XR's current state expected to emerge in 2025, one persistent issue remains—content, or rather, the scarcity of quality XR experiences

   Users frequently cite a lack of engaging content and challenges in discovering premium XR experiences as significant obstacles to fully embracing the XR world (not to mention the cumbersome nature of headsets). As a result, manufacturers are increasingly calling for greater investments in high-quality content development.

   Despite this, novel XR experiences continue to make their debut—some stemming from pure XR-native applications while others involve adaptations of popular VR gamesNevertheless, a noticeable gap persists: authentic immersive experiences that can fully exploit the advantages of mixed and augmented reality technology, surpassing conventional VR transparency limitations.

   Last year, the success of “The Disappearance of the Pharaoh” prompted an explosion in the number of immersive cultural tourism products leveraging VR’s large-scale immersive elements

   While the large-scale VR technology does provide users with an interactive experience, certain VR graphical content often suffers from poor development quality due to hardware limitations, resulting in subpar visual performanceMoreover, many offerings lack innovation, leading to a homogenized experience that fails to sustain user engagement.

   As new generations of XR headsets and smart display glasses flood the market, this issue is likely to become more pronouncedIf hardware products are to gain genuine traction and user endorsement, achieving breakthroughs in content ecosystems will undoubtedly emerge as a critical challenge in 2025.

As we close this chapter, I recall the experience of trying out the Pharaoh at HTC's Beijing office in late 2023, never suspecting that a year would unveil such rapid advancements from hardware to content within this industryFrom the launch of the Apple Vision Pro to the progression of Meta's Orion project, we have witnessed unrelenting hardware innovation and the profound integration of AI within the XR landscape