TL;DR:
- Publicis Groupe hired a metaverse-focused executive, Leon, in 2022, but the metaverse lost its allure with the advent of AI.
- Major companies like Disney, Procter & Gamble, and CAA saw their metaverse executives depart.
- AI leaders are now in high demand, with companies like Accenture and GE HealthCare making strategic hires.
- Compensation for AI roles averages over $1 million.
- The metaverse has waned in corporate conversations, with a shift toward AI.
- Apple’s “Vision Pro” headset and Meta’s Zuckerberg focus on generative AI signal the shift.
- Some metaverse experts have transitioned into AI roles, but skill sets differ significantly.
- Corporations are cautious about repurposing metaverse experts for AI.
- Market interest in the metaverse has declined, but it still holds promise.
- EY, for instance, has doubled down on AI investment, appointing two senior executives.
Main AI News:
In mid-2022, advertising giant Publicis Groupe SA raised eyebrows with an unconventional executive hire. They brought in Leon, a lion-headed digital avatar, as their “chief metaverse officer” to navigate clients through the burgeoning virtual world that had captured real-world attention. However, Leon’s time in the spotlight proved short-lived.
Just five months later, ChatGPT emerged onto the scene, diverting the buzz away from the metaverse—once the darling of tech enthusiasts since Mark Zuckerberg rebranded Facebook as Meta Platforms Inc. Human officers who had concentrated on the metaverse, a digital realm for immersive interaction, suddenly found themselves on the endangered species list.
Key figures spearheading metaverse initiatives at major corporations like Walt Disney Co., Procter & Gamble Co., and Creative Artists Agency departed from their positions. Leon’s LinkedIn profile, though it existed, vanished into obscurity. Publicis Groupe chose not to comment on the matter.
In the midst of this shift, businesses began racing to appoint AI leaders, and companies like Accenture and GE HealthCare were quick to make strategic hires. Some former metaverse executives reinvented themselves as AI experts, seamlessly transitioning from one technological hotbed to another. Compensation packages for AI leadership roles have soared, averaging well above the $1 million mark, as per a survey by executive-search and leadership advisory firm Heidrick & Struggles. Publicis even announced a substantial investment of 300 million euros ($327 million) in artificial intelligence technology and talent over the next three years.
Fawad Bajwa, the global AI practice leader at Russell Reynolds Associates, remarked, “It’s been a long time since I have had a conversation with a client about the metaverse. The metaverse might still be there, but it’s a lonely place.”
This reshuffling of the C-suite highlights the fickle nature of technology trends and the challenge corporations face when trying to distinguish hype from reality. The metaverse has largely faded from the corporate radar. Earnings calls at S&P 500 companies mentioned the term only twice in the last quarter, a stark contrast to the 63 mentions in the first quarter of 2022. At that time, eight out of ten CEOs were eager to either hire specialized talent or expand their leadership teams into the metaverse, all vying for a piece of the pie McKinsey & Co. consultants predicted could be worth $5 trillion by 2030.
Apple’s decision to market its new mixed-reality headset, the Vision Pro, as a “spatial computing” device, without any references to the metaverse, reflects this shift in focus. Microsoft Corp. recently overtook Apple as the world’s most valuable public company, largely due to investor enthusiasm for its substantial investment in AI. Even Meta’s Zuckerberg, who once championed the metaverse as “the next frontier,” has pivoted towards generative AI after spending billions on metaverse ventures that yielded minimal results.
In response, some metaverse experts have sought new horizons or adapted their roles. Joanna Popper, formerly CAA’s chief metaverse officer, moved on after a brief stint, serving as a “board observer” at the AI startup Metaphysic.ai. Pratik Thakar, known for leading Coca-Cola’s metaverse efforts, now serves as the global head of generative AI for the beverage giant.
However, not every metaverse guru can transition as smoothly. Artificial intelligence leaders possess distinct skill sets that cannot be easily repurposed. At Disney, Michael White’s metaverse department was dismantled when Bob Iger returned to lead the company. White is now the chief product officer at the self-driving car company Zoox, owned by Amazon.com Inc. Palace intrigue is less common, with executives like P&G’s Ioana Matei quietly moving on to roles focused on innovation in other sectors.
Some metaverse leaders, such as Yaiza Rubio at Spanish telecom Telefonica and Nelly Mensah at LVMH Moët Hennessy Louis Vuitton SE, continue to play significant roles. However, their expertise now encompasses multiple emerging technologies, including digital ledger blockchain. Some companies exploring metaverse possibilities may opt for consulting rather than making C-suite hires, as noted by Aliceson Robinson from Heidrick & Struggles.
Jeff Wong, the global chief innovation officer at Ernst & Young LLP, acknowledged the changing landscape. His department has reduced its metaverse investment by half over the past year or so. While some may dismiss it as a passing trend, Wong sees tremendous potential in what the metaverse can offer. In contrast, EY has appointed two senior executives to lead its global AI program, ensuring that artificial intelligence is integrated into every facet of its business. Wong emphasizes, “This is a big deal for us.”
Conclusion:
The corporate world’s shift from the metaverse to AI leadership reflects the transient nature of technology trends. While the metaverse once held significant promise, it has now taken a back seat to artificial intelligence. This shift signifies the growing importance of AI in shaping the future of businesses, with companies actively seeking AI leaders to navigate this evolving landscape. The metaverse, though not abandoned entirely, has lost its luster, prompting a reevaluation of its role in the corporate world.
