How AI will Transform the Metaverse

7 min readMar 26, 2023


UpOnly | Research #52: Meta realigns AI as top goal while other projects begin maximizing the new tech

Artificial Intelligence (AI) and the Metaverse are two of the most prominent emerging technologies of the 21st century. Although both are usually considered separately, there is no doubt that their paths will cross.

This intersection is bound to bring unexpected innovation that will transform our ideas of the Metaverse. There is already plenty of innovation, from improving communication to security to the quality of the worlds.

According to a recent study by Contrive Datum Insights, the global Metaverse market will exceed $1.3 trillion by 2030. The study suggests that the emerging virtual economy and the increasing popularity of Web3 gaming, artificial intelligence, and cryptocurrencies will fuel its growth.

As for AI, two of the five richest companies in the world, Alphabet Inc. (parent company of Google) and Microsoft, have gone all in with enormous investments. Recent remarks from Meta’s Mark Zuckerberg suggest that they, too, are joining other Big Tech firms in making AI the primary focus.

In this edition of UpOnly | Research, we discuss Meta’s renewed focus on AI and the impact this decision will have on the development of their Metaverse. Then we will discuss current AI integrations in other Metaverse projects.

How AI can transform the Metaverse

Recently, Mark Zuckerberg released a statement clarifying Meta’s shift to AI research and development. Meta’s primary goal has been developing a cutting-edge, industry-leading Metaverse environment for the last few years. In his post, Zuckerberg said the following:

‘’Our single largest investment is in advancing AI and building it into every one of our products. We have the infrastructure to do this at an unprecedented scale. I think the experiences it enables will be amazing. Our leading work building the Metaverse and shaping the next generation of computing platforms also remains central to defining the future of social connection.’’

From this statement, plus the launch of a top-level internal AI team, it is clear that AI will play a role in Meta’s Horizon World’s Metaverse as the technology progresses. Although AI has become the primary focus for META, Zuckerberg’s remarks indicate they are researching it to create new features and find innovative solutions for their existing products. This begs the question, how will AI and the Metaverse interact to bring about a better virtual world for all users?

First, we must look at a main Metaverse selling point — the ability to interact with anyone, anywhere in the world, from the comfort of your home. AI can facilitate social interactions in the Metaverse by incorporating realistic chatbots, speech recognition, and natural language processing. This can make conversations with bots and other users more natural and seamless, enhancing the social experience in the Metaverse.

For example, Meta has recently released MuAVic, An audio-video speech translation AI. It uses visual information to improve the performance of speech recognition and real-time translation, even in noisy or suboptimal audio conditions.

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Also, last year, Meta launched NLLB-200, the first AI software to translate across two different languages. Combining MuAvic and NLLB-200l could prove very useful for communication between users in the Metaverse who speak different languages. Speech recognition and real-time translation will eliminate language barriers, creating a globally accessible Metaverse.

This technology may become so advanced that it will be challenging to decipher between a human and an AI bot in the Metaverse. Co-founder of Web3 gaming giant Animoca Brands, Yat Siu, believes AI will drastically enrich the social element of the Metaverse. Here’s what he told Cointelegraph.

“One primitive example of this (AI) is chatbots. In video games, we constantly engage with non-player characters with rudimentary character development. AI changes this significantly. They will deepen and enhance engagement and create deeper meaning and utility to their related ownership of their assets in the metaverse,” he said.

The potential for AI in the Metaverse is endless. AI can analyze user data to provide personalized experiences, such as tailored content, recommendations, and interactions. AI can be a tool for ensuring the safety and security of Metaverse users, detecting malicious activity such as hacking and fraud, and providing real-time responses to help protect users from harm.

Although this is starting to sound like something out of a sci-fi film, it isn’t a distant concept. Metaverse projects are already incorporating AI into their platform, and some of the early results are already stunning.

Current Applications of AI in the Metaverse

A further selling point of all Metaverse projects is that they offer you more control over your environment. You, the user, can manifest the digital world you wish to live in, and AI is making this a reality by creating immersive environments.

AI can generate realistic 3D models, textures, and animations. Oncyber, a Web3 Metaverse platform, has developed an AI-powered tool called Magic Composer that allows users to customize their environments via text commands.

The tool runs on OpenAI’s GPT-3.5 model, which generates real-time tweaks to the platform’s worlds based on text prompts. Users can change the look and color of the sky, customize the look and size of picture frames, and more.


The goal is to provide accessible ways to personalize online spaces and help users unlock their creativity. Oncyber rolled out the AI tool to a select group of testers Monday, March 20, 2023, and it will likely be available to the public soon.

According to Oncyber founder and CEO Rayan Boutaleb, the platform plans to add more complex generative features over time. This includes generating bespoke or modified 3D architecture by typing out a request.

“In the next iteration, what we want is for people to port any hallucination or dream they have into a 3D canvas, and just directly see the result of what they might imagine and change things up,” he said. “It’s a first step towards a very big result, which we are not that far off from.”

They’re not the only Metaverse platform leveraging AI. Nakamoto Games, a Web3 gaming and Metaverse platform have integrated several AI features into its upcoming NAKAVERSE Phase II. The NAKAVERSE is an immersive Metaverse where users can earn crypto by producing valuable digital assets and live rich social lives in a world populated by Web3 gamers.

Nakamoto Games is working on improving the entertainment value of the NAKAVERSE by designing immersive environments and lifelike non-playable characters (NPCs). With the help of AI, they are also creating a more intricate and dynamic Metaverse that can respond to players in a more lifelike and captivating manner.

Nakamoto Games is looking to make its Metaverse experience unique for every player who enters. The team noted that it had found ways to significantly expand the range of storylines players can follow within the NAKAVERSE, resulting in a highly individualized and immersive experience.

AI and the Metaverse on UpOnly

AI’s ability to analyze and interpret large amounts of data quickly and efficiently makes it an irreplaceable tool in the new digital frontier. As the Metaverse continues to grow and evolve, AI is poised to play an increasingly important role in shaping its development.

It’s an exciting time to be a part of both AI and the Metaverse. The capital inflow from Big Tech and Meta’s commitment to AI is bound to lead to endless AI innovation in Metaverse technology. We’re already seeing how AI impacts virtual world development, and the improvements will continue with time.

UpOnly is blessed to exist at the intersection of both sectors. We leverage the latest AI innovations, creating opportunities for Metaverse projects to grow and for Web3 investors to maximize profits. UpOnly is upgrading the entire platform through AI, including novel features such as project recommendations, ROI calculators, and platform comparison tools.

Whether you are a gamer, investor, or a Metaverse socialite, UpOnly makes customized recommendations to suit your needs. In addition to helping with portfolio construction, AI can help identify new investment opportunities, enhance returns, and mitigate risk.

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