AI, Metaverse and the Workplace

We are now at the start of a digital revolution that's disrupting and changing the world. Its impact on society in the coming future will offer immersive experiences and ways to merge virtual and physical realms via a digital space known as the Metaverse.

The Metaverse is a shared virtual Web 3D space across multiple metaverse worlds created by users using servers in different jurisdictions (which may or may not be connected). You can digitally access the Metaverse to interact and connect with others by putting on VR goggles (which will become more advanced as time goes on). Users can then attend virtual events, go shopping, experience virtual objects etc… it's as simple as that.

Avatars

Avatars created using AI technology in the Metaverse are a 3D representation of a person's identity (a person may have more than one avatar, for example, one avatar created for work purposes and another for socialising. Your avatar protects your identity, and you can also protect your privacy in the Metaverse by using technologies such as encryption and VPNs.

Avatars are the virtual connection between the Metaverse and the user. They move freely within the Metaverse, taking a user's identity, assets and money with them while retaining control.

Company set-up in the Metaverse

The Metaverse will drastically change the way companies operate/set up on a VR platform and companies already working within the Metaverse will gain opportunities such as (but not limited to):

1. Be a step ahead of competitors and the market is currently easier to enter.
2. Avatars engage with a wider selection of people and in new ways, providing unique opportunities such as NFT art, fashion, brand recognition, real estate projects, virtual concerts, virtual shopping and more.
3. Provide inexpensive and more immersive experiences to clients and customers.
4. Provide 3D models of real-world assets.
5. Virtually plan what your home or office space will look like, which will cut costs.
6. Purchase virtual land and view 3D images of commercial developments.
7. The mechanisms used to transfer assets between virtual and physical worlds need to ensure that transfers are transparently completed.
8. Host virtual conferences, events and training sessions.
9. Increase brand awareness and online advertising.
10. Provide event sponsorship opportunities.
11. Gain more visibility through engagement marketing.
12. People from around the globe are immediately connected without the time and costs of having to travel, in turn achieving sustainability goals.

Companies in the coming decades will either move into or set up and start operating as new entities in the Metaverse. As with any business in the real world, a proper business plan would be beneficial. Choosing the right platform is essential. You will have the opportunity to increase your online presence through digital marketing/e-mail marketing, online advertising via social media, and, of course, you will need to invest in VR technologies, etc.

Workplaces in the Metaverse

Workplaces in the Metaverse will attempt to replicate what businesses do in-person in the office and will need to consider issues such as:

1. Meetings in person run differently from virtual meetings because behaviours regarding how we communicate are different in the Metaverse.
2. The technology used to make the Metaverse a reality will have a great impact on the way companies manage people, particularly since there will be no direct human interaction.
3. Would you/your employees spend 40/50 hours of your week working in the Metaverse?
4. Companies will need to ensure they remain inclusive and that the Web 3 technology used does not exclude those working in the Metaverse.
5. Implement ethical conduct and behaviour to ensure the work experience is the same for everyone i.e. those coming into the office with the opportunity of human connection and those working digitally in the Metaverse as an avatar, remain the same.
6. Promote inclusion, diversity and equity during the digital recruitment process by removing visual cues of identity, allowing people to recreate themselves, provide protection for users and their digital identity and removing barriers for people with disabilities for example, neurodiverse individuals may suffer anxiety when attending in-person meetings.
7. Promote the wellbeing of employees.
8. Prevent online harassment, bullying, violence and criminal conduct by putting measures and training in place on the metaverse platform(s).
9. Provide continuous online training on how to prevent scams and fraud prevention.
10. Considerations may also go as far as how avatars will dress? Will businesses be willing to incur the expense of purchasing suits for employee avatars in the Metaverse?
11. Employers will need to ensure equality between tech-savvy people in comparison to those who are less confident to function in the Metaverse because it's a new experience for them. Otherwise, this would create a disadvantage.
12. Employers should recognise that there will be a need to educate people to gain the relevant skills.
13. How will employees be monitored? Will employers use surveillance?
14. Unconscious bias between individuals and avatars influences our perceptions and thoughts about others. When you create an avatar, you have a sense of belonging and begin to feel that avatar is a representation of you, so, for example if a light-skinned person creates a dark-skinned avatar, would that reduce racial bias and negative behaviours?  
15. What happens if your avatar does something wrong, for example unwanted interactions, touching someone's avatar inappropriately, or there is a complaint about racism, violence or assault? Who is liable? What safety tools will companies put in place? Companies will need to take into consideration how to safeguard and protect avatar rights in the Metaverse, consider how to create personal boundaries and ensure avatars maintain a virtual distance.
16. If one avatar were to serve proceedings on another avatar, the appropriate forum would need to be clear.
17. Will the values and culture of the company remain the same in the Metaverse?
18. Will the directors have a private office in the Metaverse?
19. Will employees need to knock on the door in the Metaverse to speak to a manager/CEO?

Law and the Metaverse

Currently, as technology evolves the lines of legal, regulatory, compliance standards, guidelines and frameworks remain blurred between the real and the virtual world mainly because they cannot keep up with the fast pace in which technology is evolving and users creating avatars in the Metaverse must continue to comply with existing laws and regulations in the real world.

Unfortunately, current laws, regulations and compliance standards globally are ambiguous and not aligned with the virtual world and so continue to remain a grey area, for example virtual currencies or digital property are not fully understood and so there is a need for legal, regulatory and compliance experts to establish safeguards to ensure evolving technology is used for the right purposes, including use of cybersecurity for digital products.

Recently proposed Artificial Intelligence legal frameworks and legislation by the European Commission will protect the environment from AI on its potential risks and impact:

1. The Digital Services Act ('DSA') controls illegal content, promotes transparent advertising, and controls information.
2. New AI regulating rules in Europe 'The Artificial Intelligence (AI) Act' will come into force in 2026 and sets a global standard for AI regulation in respect of AI technology risks, which will be divided into four sections:
3. Unacceptable risk (banned outright)
4. High risk (must be certified)
5. Limited risk (low regulation)
6. Minimal risk (remains unaffected)

To mitigate the risk of spreading harmful content and to reduce the risk of vulnerable individuals from being adversely affected, platforms, manufactures and software developers must use appropriate strategies, implement clear policies and notices for users by looking into technical gaps to detect and block harmful content, verify the users age, and avoid fake accounts on platforms.

Regulators

Virtual Assets Regulatory Authority (VARA), Dubai (UAE) has announced it will set up headquarters in the Metaverse and govern how virtual assets and permissible activities are transacted.

Intellectual Property Rights in the Metaverse

Challenges arise surrounding infringement/breach of intellectual property rights (IP), who owns IP rights and how IP rights are going be protected in the Metaverse are of great concern to IP rights holders. People in the Metaverse can remain anonymous making it difficult to identify the perpetrators, identify what content has been infringed, prove the infringement and enforce proceedings which will be costly.

New types of non-traditional, patentable rights related to technology for IP holders will therefore need to be implemented as technology advances.

Copyright law

Traditional copyright law protects original work, providing creators of that work exclusive rights to legally distribute it. The Metaverse is made of software codes and gives the ability for users to create and share virtual works, assets, 3D images, virtual objects, music and create their own avatars - they will want to have control over the use of their avatar etc. However, enforcing copyright law will be challenging because the works can be connected, or segregated in parallel worlds.

Trademark law

Trademarks once approved for registration can extended brand protection to the Metaverse and give you exclusive rights for use in the Metaverse, although these rights may align, differ or conflict with real world legal standards.  

Trademark protections for goods and services in the real world extend to specific classes, whereas this is a challenge in the Metaverse, particularly if the trademark is being filed in bad faith and the trademark owner is not monitoring their IP in the Metaverse. There is a need for clear and concise trademark frameworks in the Metaverse by implementing Terms of Service agreements.

Data privacy in the Metaverse

The Metaverse uses technology such as virtual reality, artificial intelligence, spatial technologies etc., and these technologies rely on collecting personal data from its users. The Metaverse will collect traditional types of data such as your name, address, age, disabilities, gender, etc., and as technology develops, new types of data will also be collected and processed in the Metaverse, such as biometrics, facial expressions, voice recordings, reactions the content, reaction time, language etc.

Users should therefore be aware that the more data that is placed on the Metaverse, the wider your digital footprint will be, increasing the risk of cyber threats and security breaches in relation to your personal data/biometrics and also your virtual assets, wallets, or funds linked to your avatar which can be stolen.

Measures, therefore, need to be implemented to protect an individual's private information that has been collected from cyber threats and security breaches, and measures need to be implemented to prevent collection of personal data by manipulation, malicious software or avatars, fake website links tricking users into providing their personal information for sale of an individual's personal data to third parties. Users will also need protection from surveillance and AI, as well as from being monitored by the actual platform.

Data protection regulations and security measures will need to be kept up to date as technology evolves and users will continue to have the right to know how their personal data is collected and used in the virtual world, together with the ability to opt-out. Users should, therefore, be mindful of the amount of personal information they share, and they use avatars to protect their identity from third parties. Avatars, including their identities, would need to be regulated; otherwise, cyberspace permits the separation of a person's real and virtual identity, and any harm done can be dismissed.