Is XR the unsung hero of the digital revolution?

Technology has always been a catalyst for change. While artificial intelligence (AI) often takes centre stage, XR – including virtual reality (VR), a fully digital experience and augmented reality (AR), digital elements layered over the real world – is increasingly reshaping our world in significant and tangible ways.

During the COVID-19 pandemic, XR technologies transformed telehealth by enabling immersive, remote interactions. These tools ensured continuity of care, reduced healthcare workers’ exposure to the virus and enhanced patient engagement, effectively overcoming the limitations of traditional telehealth methods.

While AI often captures the headlines as the cornerstone of the fourth industrial revolution, another story is unfolding – one in which XR is quietly changing the fabric of our society.

Another compelling example of XR’s impact is the United Nations’ use of virtual reality to simulate refugee camps. These immersive simulations allow policymakers to experience conditions within the camps firsthand, fostering a deeper understanding of the challenges faced by refugees. This heightened awareness has led to more informed decision-making and better policy outcomes.

Beyond the humanitarian sector, businesses worldwide are building virtual worlds that mimic and, in some ways, surpass our physical reality. These developments are creating spaces where people can work, learn and solve problems together, no matter where they are. The potential of XR technology goes beyond these virtual playgrounds; it extends into every facet of life.

The Global Collaboration Village, a digital extension of the World Economic Forum that empowers decision-makers to tackle challenges through live data simulations and real-time interaction, demonstrates XR’s practical value by enabling leaders to engage in real-time discussions and decision-making during critical global events.

For example, it was showcased at the Forum’s annual meeting in Davos, Switzerland, where leaders engaged in real-time discussions and decision-making in immersive, interactive settings, allowing them to visualize complex global issues in ways impossible in the physical world.

Data shows immersive learning improves retention by 75% and increases confidence by 275%. Additionally, 89% of executives believe the metaverse – a shared virtual space where people interact with each other and digital environments in real time – will be crucial to future growth.

The Village leverages XR to create an immersive environment that enhances engagement and collaboration beyond traditional video conferencing. Over 140 partners were involved in the exercise, demonstrating XR’s power in public-private collaboration necessary to tackle the biggest challenges facing the world, including climate change, inequality, pandemics and more.

XR is already rapidly being adopted across industries and changing the game in complex systems such as manufacturing and supply chains. The Village’s Advanced Manufacturing and Supply Chain Hub is one example where XR was used to simplify and visualize intricate manufacturing processes, enhancing collaboration and innovation.

The hub showcases successful use cases of workforce augmentation and sustainable practices while providing a virtual space where industry professionals can interact, plan and explore future supply chain scenarios.

Despite its benefits, XR faces high implementation costs and technical disruptions. Its effectiveness in these settings is also often contingent upon the existing digital infrastructure, which varies significantly across regions and industries.

Nonetheless, XR remains a promising tool in advancing industrial operations by improving operational efficiency, fostering collaboration and enhancing customer engagement through virtual experiences. The Forum’s Global Collaboration Village addresses some of these barriers through accessibility, ensuring a traditional two-dimensional format is available to eliminate the need for pricey headsets.

This inclusivity further allows leading voices, including young leaders from the Global Shapers community, to connect, collaborate and drive positive change. By empowering these emerging leaders, the village is helping shape a future where innovation is accessible and impactful. Moreover, the global XR market is projected to reach nearly half a trillion dollars by 2026, underscoring its role in transforming critical sectors.

As we stand on the brink of a technological revolution, XR and the metaverse are converging to create dynamic, immersive digital spaces that adapt to users’ needs in real time. This evolution is reshaping how we experience the internet, turning technology into an extension of our reality.

By blending XR with increasingly sophisticated hardware, these environments are becoming more personalized and accessible, enabling global organizations to hold critical meetings in either 2D or immersive formats. This flexibility reduces the need for travel and fosters seamless cross-border collaboration, making innovation more inclusive and impactful.

The Global Collaboration Village exemplifies this potential by creating a secure, inclusive platform where leaders and communities can come together to drive meaningful change. As XR continues to evolve, it promises to transform our digital lives, making technology not just a tool but a catalyst for a better future.

The Global Collaboration Village is a World Economic Forum initiative, in partnership with Accenture and powered by Microsoft Mesh.