In mid-2022, Publicis Groupe SA hired a lion-headed digital avatar named Leon to serve as the “chief metaverse officer”. This unusual move was meant to guide clients through the virtual realm that had captured real-world attention. However, Leon’s time in the limelight was short-lived. Five months later, the focus shifted from the metaverse to artificial intelligence with the debut of ChatGPT and Mark Zuckerberg’s rebranding of Facebook as Meta Platforms Inc.
As a result, executives leading metaverse efforts at companies like Walt Disney Co, Procter & Gamble Co, and Creative Artists Agency left their positions. Leon’s LinkedIn profile and career history within the company disappeared. Publicis Groupe declined to comment on the changes.
Businesses have since scrambled to appoint AI leaders, and some former metaverse executives have transitioned into AI experts, capitalizing on the growing trend. Compensation packages for AI leaders are currently averaging well above US$1mil (RM4.73mil) and Publicis recently announced a €300mil (RM1.53bil) investment over the next three years in AI technology and talent.
“It’s been a long time since I have had a conversation with a client about the metaverse,” said Fawad Bajwa, the global AI practice leader at the Russell Reynolds Associates executive search and advisory firm. “The metaverse might still be there, but it’s a lonely place.”
The changing landscape of technology trends has caused most companies to move on from the metaverse. The word “metaverse” was mentioned only twice on S&P 500 earnings calls in the last quarter, compared to 63 times in the first quarter of 2022. This shift is reflected in the decision of companies like Apple to refer to its new mixed-reality headset as a “spatial computing” device, avoiding any mention of the metaverse.
Microsoft has recently overtaken Apple as the world’s most valuable public company due to investor enthusiasm for its aggressive investment in AI. Even Mark Zuckerberg has shifted focus from the metaverse to generative AI after investing billions in metaverse initiatives that yielded little results.
Some former metaverse leaders have transitioned to new roles, such as Joanna Popper who served as a “board observer” at an entertainment-focused AI startup after leaving CAA, and Pratik Thakar, who is now the global head of generative AI for Coca-Cola. However, the skills required for AI leadership are quite different, making it difficult to transition someone from a metaverse role.
In some cases, former metaverse executives have been let go, such as Disney’s Michael White who was removed after a broader corporate overhaul. Others, like P&G’s Ioana Matei, have moved on to new roles at other companies. Some metaverse chiefs have remained, but their expertise spans several emerging technologies beyond the metaverse.
Overall, there is still interest in engaging with consumers in the metaverse, although companies are opting for consultants rather than making C-suite hires for metaverse-related positions.
While some companies have reduced their investment in the metaverse, others like EY have doubled down on their investment in AI, appointing two senior executives to lead their global AI program, showing that the promise of the metaverse still lives on.
