Commerce Metaverse: Shaping Marketing’s Future with Agentic AI and Digital Twins

Published August 15, 2024

1

Metaverse Redux

The metaverse, once a buzzword that dominated tech conversations and corporate strategies, seems to have faded from the spotlight as quickly as it emerged. Just a couple of years ago, every business conference featured sessions on metaverse strategies, and companies scrambled to establish their presence in this new digital frontier. The opening keynote at a Chicago eCommerce event I attended was entirely focused on the metaverse, reflecting its perceived importance in shaping the future of digital interactions. However, as with many hyped technologies, the initial excitement has waned, and discussions about the metaverse in business circles have become increasingly rare.

Yet, as is often the case in the ever-evolving world of technology, we find ourselves on the cusp of a metaverse renaissance – a metaverse redux in the form of the Commerce Metaverse. This new iteration, however, promises to be fundamentally different from its predecessor (the Consumer Metaverse). Instead of focusing on gaming experiences or creating a ‘second life’, this emerging metaverse is poised to revolutionise the relationship between marketers and their customers, and therefore (e)commerce itself. At its core will be the interaction between AI-powered digital twins, ushering in a new era of personalised, efficient, and effective marketing.

In this human-centric metaverse, the key players will be the Co-Marketer and Customer Twins. These AI-driven entities will form the backbone of future ecommerce strategies, creating a sophisticated ‘mirror world’ that reflects and anticipates customer behaviours, preferences, and needs. This Commerce Metaverse will serve as a transformative force, reshaping how businesses engage with their customers, dramatically reducing AdWaste, and propelling companies towards their “Profipoly Quest” – the pursuit of exponential forever profitable growth in an increasingly competitive digital landscape.

Imagine a world where marketers can engage in meaningful conversations with Segment Twins, AI representations of specific customer clusters. These interactions will provide unprecedented insights into customer likes, dislikes, and behaviours, allowing for the refinement of marketing communications to levels of personalisation previously unattainable. Gone will be the days of broad, untargeted messaging; instead, each communication will be tailored to resonate with its intended audience.

Furthermore, the collaboration between marketers and Singular Twins – AI replicas of individual customers – will revolutionise the concept of N=1 hyper-personalisation. This partnership will eliminate wasteful marketing efforts by ensuring that each customer receives only the most relevant and appealing offers. The result of this targeted messaging will be a marketing ecosystem that is not only more effective but also more respectful of the customer’s time and attention.

The Commerce Metaverse represents more than just a technological advancement; it signifies a fundamental shift in how we conceptualise and execute marketing strategies. By creating a virtual environment where AI-powered entities can interact, test scenarios, and generate insights, we’re entering an era of marketing that is simultaneously more data-driven and more human-centric.

In this series, we’ll explore the intricacies of this new Commerce Metaverse, building upon the foundation laid in previous discussions about AI-powered Digital Twins. We’ll examine how this mirror world of customer twins will function, the technologies that will drive it, and the implications it holds for the future of marketing, customer relationships, and business growth.

Drawing parallels between technology domains, we will explore the “Industrial Metaverse’” – where digital twins have revolutionized manufacturing and supply chain management. By examining how these virtual representations optimize machine performance and predict maintenance needs, we’ll uncover valuable insights applicable to the marketing realm. This cross-pollination of ideas will reveal how the precision and predictive power achieved in industrial applications can be harnessed to create more efficient, responsive, and personalised marketing strategies. Just as digital twins in industry have led to smarter factories and more resilient supply chains, their marketing counterparts promise to usher in an era of hyper-personalised customer experiences and data-driven decision making.

2

Metaverse – 1

Wikipedia provides an overview of the metaverse: “The metaverse is a loosely defined term referring to virtual worlds in which users represented by avatars interact, usually in 3D and focused on social and economic connection. The term metaverse originated in the 1992 science fiction novel Snow Crash as a portmanteau of “meta” and “universe”. In Snow Crash, the metaverse is envisioned as a hypothetical iteration of the Internet as a single, universal, and immersive virtual world that is facilitated by the use of virtual reality (VR) and augmented reality (AR) headsets.”

Wired adds: “To help you get a sense of how vague the term “the metaverse” can be, here’s an exercise: Mentally replace the phrase “the metaverse” in a sentence with “cyberspace.” Ninety percent of the time, the meaning won’t substantially change. That’s because the term doesn’t really refer to any one specific type of technology, but rather a broad (and often speculative) shift in how we interact with technology. And it’s entirely possible that the term itself will eventually become just as antiquated, even as the specific technology it once described becomes commonplace. Broadly speaking, the technologies companies refer to when they talk about “the metaverse” can include virtual reality—characterized by persistent virtual worlds that continue to exist even when you’re not playing—as well as augmented reality that combines aspects of the digital and physical worlds. However, it doesn’t require that those spaces be exclusively accessed via VR or AR. Virtual worlds—such as aspects of Fortnite that can be accessed through PCs, game consoles, and even phones—have started referring to themselves as “the metaverse.””

TechTarget writes: “The metaverse reached the peak of hype and has been left for dead, but make no mistake, the technologies that will power this 3D internet are firing on all cylinders… Today, companies use the term metaverse to refer to many different types of enhanced online environments. These range from online video games like Fortnite to virtual workplaces like Microsoft Mesh or Meta’s Horizon Workrooms to virtual dressing rooms and virtual operating rooms. Rather than a single shared virtual space, the current version of the metaverse is indeed shaping up as a multitude of metaverses with limited interoperability as companies jockey for position. The combination of uncritical enthusiasm for the metaverse and uncertainty about how it will pan out has some industry watchers questioning if the metaverse will ultimately be much different from the digital experiences we have today — or, if it is, whether the masses will be willing to spend hours a day in a headset navigating digital space… What will the metaverse mean for the average user?…On the positive side, an immersive metaverse enables humans to go where they were never able to go before, including outer space. Online social connections can also become much richer. On the other hand, the bad behavior witnessed on social platforms has the potential to be magnified in a virtual world, and metaverse usage could be addictive to some people.”

3

Metaverse – 2

I asked Claude for a history and current state of the metaverse:

1. Origins and Early Concepts:

• The term “metaverse” was coined by Neal Stephenson in his 1992 science fiction novel “Snow Crash”
• Early virtual worlds like Second Life (launched 2003) provided a basic framework for shared online spaces

2. Gaming Industry Developments:

• Massively multiplayer online games (MMOs) like World of Warcraft (2004) popularized persistent online worlds
• Fortnite (2017) introduced live events and concerts within a game environment, expanding the concept of virtual shared experiences

3. Technological Advancements:

• Virtual Reality (VR) and Augmented Reality (AR) technologies improved significantly in the 2010s
• Oculus Rift (2016) and subsequent VR headsets made immersive experiences more accessible

4. Corporate Interest and Investment:

• Facebook rebranded as Meta in 2021, signaling a major push towards metaverse development
• Other tech giants like Microsoft, Google, and Apple increased investments in metaverse-related technologies

5. Current State:

• The metaverse remains largely conceptual, with no single, unified virtual world
• Multiple platforms offer metaverse-like experiences (e.g., Roblox, Decentraland, The Sandbox)
• Initial hype has cooled, but development continues across various sectors
• Focus has shifted from consumer applications to enterprise solutions and industrial use cases
• Challenges remain in areas of interoperability, user adoption, and creating compelling long-term engagement

6. Emerging Trends:

• Increased focus on practical applications in fields like education, healthcare, and remote work
• Growing interest in decentralized metaverse concepts, often incorporating blockchain and cryptocurrency elements
• Exploration of AI integration to create more dynamic and responsive virtual environments

7. Future Outlook:

• The metaverse concept is evolving towards more practical and focused applications
• Full realization of a comprehensive, interconnected metaverse is likely still years away
• Continued technological advancements in AR, VR, and AI will shape its development

I then asked Claude for an analysis of why the metaverse failed as a commercial platform and what could potentially revive it:

3 Reasons the Metaverse Failed as a Commercial Platform

1. Lack of Compelling Use Cases:
   • The metaverse struggled to provide clear, practical value for everyday users beyond novelty experiences.
   • Many applications felt forced or unnecessary, failing to solve real-world problems or enhance daily life significantly.
2. Technical Limitations and User Experience Issues:
   • High-quality VR hardware remained expensive and cumbersome for many users.
   • Issues like motion sickness, eye strain, and the isolating nature of VR headsets hindered widespread adoption.
   • The graphical quality and interactivity often fell short of user expectations set by traditional gaming and online experiences.
3. Fragmentation and Lack of Interoperability:
   • Multiple competing platforms created a fragmented ecosystem, with no single, unified metaverse emerging.
   • Lack of standardization made it difficult for users to move assets or identities between different metaverse platforms.
   • This fragmentation also made it challenging for businesses to invest in and develop for the metaverse confidently.

3 Things That Could Revive the Metaverse

1. Focus on Practical, Value-Driven Applications:
   • Shift towards solving real-world problems in areas like remote work, education, and professional training.
   • Develop applications that provide tangible benefits in productivity, collaboration, or skill development.
   • Create experiences that seamlessly blend with and enhance daily life rather than trying to replace it entirely.
2. Technological Advancements and Improved Accessibility:
   • Develop more comfortable, affordable, and user-friendly VR/AR devices.
   • Improve graphics, haptic feedback, and overall immersion to create more compelling experiences.
   • Leverage AI to create more dynamic, responsive, and personalized metaverse environments.
3. Standardization and Interoperability:
   • Establish industry-wide standards for metaverse development, allowing for easier integration between platforms.
   • Create systems for portable digital identities and assets that can move seamlessly across different metaverse spaces.
   • Foster collaboration between major tech companies and platforms to create a more unified metaverse ecosystem.

Could AI-powered Digital Twins be the future of the new Commerce Metaverse? Imagine a metaverse populated not just by avatars, but by sophisticated digital replicas of individuals and businesses (co-marketers), each powered by Agentic AI. These Digital Twins could interact, learn, and evolve in real-time, creating a dynamic and responsive virtual environment that mirrors and enhances our physical world. From personalised shopping experiences to virtual business negotiations, AI-powered Digital Twins could transform the metaverse from a mere digital playground into a powerful tool for commerce, education, and social interaction. This convergence of AI and the metaverse might just be the key to unlocking its true potential and widespread adoption.

The world of machines as manifested in the Industrial Metaverse is where we can learn from.

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Industrial Metaverse – 1

A variant of the Consumer Metaverse is the “Industrial Metaverse.” Here is a summary of what’s been written about it.

Siemens: “The industrial metaverse is the concept of a digital world to mirror and simulate real machines and factories, buildings and cities, grids and transportation systems. By seamlessly integrating technologies like cloud and edge computing, industrial AI and digital twins, the industrial metaverse can optimize processes and drive sustainable practices, ultimately shaping the future beyond simulation… It will be a world which is always on (persistent), allows for the interaction of an infinite number of people and assets (concurrent), and offers the full immersion into a physics-based, photo-realistic and real-time simulation. In this digital environment people can break the barriers of distance and work together across countries and continents, enabling a whole new level of collaboration.”

Deloitte: “The industrial metaverse is the convergence of individual technologies that, when used in combination, can create an immersive three-dimensional virtual or virtual/physical industrial environment. As technology evolves, the industrial metaverse will likely allow access to these immersive 3D environments from any internet-connected device, including virtual reality (VR) and augmented reality (AR) devices, as well as smartphones, tablets, laptops, and equipment, from anywhere in the world. The manufacturing industry appears well-positioned for the adoption of the industrial metaverse. Given their continued focus on digital transformation and their journey toward the smart factory, the majority of companies surveyed have made significant investments and are already using the foundational technologies that power the industrial metaverse. Companies are generally either implementing technologies like data analytics, cloud computing, artificial intelligence (AI), 5G, and the Internet of Things technologies across multiple projects and processes, or they are currently experimenting with one-off projects. The same is true for digital twins, 3D modeling, and 3D scanning, which can all serve as building blocks for the immersive 3D environments of the industrial metaverse.”

Here are some of the use cases.

World Economic Forum published a briefing paper on the Industrial Metaverse. I asked ChatGPT to summarise its key points: “The industrial metaverse represents the next evolution of digital twin technology, extending beyond mere replicas of machinery or manufacturing plants to create a persistent 3D platform integrated across an organization’s entire value chain and product lifecycle. Enabled by technologies like extended reality (XR), robotics, IoT, AI, blockchain, and advanced computing and connectivity, this metaverse allows a bi-directional flow between real and virtual worlds. Key use cases in the industrial metaverse include virtual design, testing, production planning, operations monitoring, and maintenance. Companies are currently exploring initial proofs-of-concept, such as VR safety training and MR showrooms, with the vision of integrating these into comprehensive platforms.”

Here are two charts from the report about the future:

5

Industrial Metaverse – 2

Technology Review: “While definitions abound and it remains to be seen how the industrial metaverse will fully unfold, digital twins are increasingly viewed as one of its key applications. Used for everything from creating ecosystems when planning a new city to working out iterations of manufacturing processes, digital twins were first proposed in 2002 and later became a vital technology when the fourth industrial revolution accelerated automation and digitization across industries. Simply put, a digital twin is a virtual replica of a product or process used to predict how the physical entity will perform throughout its lifecycle…Thierry Klein, president of Bell Labs Solutions Research at Nokia [says]: “The industrial metaverse combines physical-digital fusion and human augmentation for industrial applications and contains digital representations of physical industrial environments, systems, assets and spaces that people can control, communicate, and interact with.”…Creating digital twins is just one of the many advantages of the industrial metaverse. Klein says the industrial metaverse can reach “a much larger scale with increasing complexity by creating digital twins of entire systems such as factories, airports, cargo terminals, or cities—not just digital twins of individual machines or devices that we have seen so far.””

Nokia: “Digital twins are one of the most promising applications of the early industrial metaverse. These virtual replicas of physical objects (for example, a jet engine, car or wind turbine) are already helping private and public organizations plan faster, improve processes, optimize operations and much more. As the industrial metaverse starts to take hold, its scale and complexity will increase exponentially. Enterprises and public sector agencies will be able to: create digital twins of entire environments, such as power grids, rail yards or even whole cities, use rich, real-time data to gain unparalleled operational insights, and not just experience the physical world in a virtual space, but actually control it.”

Capgemini: “Digital twins are virtual representations of real-life objects, processes, systems, and their interconnections. Employees are already using twins in enterprises to perform practical tasks, such as system simulation, monitoring, and maintenance – and all without having to interact with real-world objects. The industrial metaverse will take digital twins to a new level. This shift will become manifest via a progression from the Internet of Things, where data is exchanged between sensors in physical objects over networks, to the “Internet of Twins,” where an interconnection between digital objects and information flows creates an added dimension. In this Internet of Twins, workplace users will carry out co-design and co-simulate processes at scale. For example, we envisage a factory in which equipment, products, and people are all connected. And the way these elements operate – and their associated behaviors – could be simulated in a dynamic, virtual experience. Employees will encounter richer representations of the situations they encounter. Unlike in static consumer metaverses, these dynamic industrial metaverses will involve collaboration between different digital twins and their associated simulations. By working together, employees will use this dynamic space of systems and data to create solutions to the problems they find. This dynamic metaverse of interconnected machines and humans will form the basis for a new era, which we refer to as the “Internet of Experiences.””

Siemens’ Pham Thai Lai: “Digital twins and the industrial metaverse are closely intertwined. Digital twins serve as the foundation of the industrial metaverse, enhancing decision-making, enabling real-time replication and simulation, promoting interconnectivity and efficiency, and facilitating immersive experiences. This convergence between digital twins and the metaverse brings significant value to businesses by eliminating the limitations and risks inherent in the physical world, thereby unlocking new opportunities…[An] example is Siemens’ Digital Native Factory in Nanjing of China. The entire factory was simulated with a digital twin, which optimised the building, and detected and mitigated potential problems at an early stage. Planning errors, both small and big, which in the past would cost a lot of money and a lot of time, were completely avoided. And we continue to use the power of simulation during operations. The true benefit of this digital plant: manufacturing capacity increased by 200 per cent and productivity by 20 per cent.”

6

Industrial Metaverse – 3

This is from a conversation with Claude. I began by asking how digital twins help with the industrial metaverse.

Digital twins play a pivotal role in the development and functionality of the industrial metaverse. A digital twin is a virtual replica of a physical object, process, or system that allows for real-time monitoring and simulation. In the context of the industrial metaverse, digital twins extend beyond individual assets to encompass entire processes, production lines, and even factories, integrating seamlessly into the larger metaverse environment.

1. Enhanced Monitoring and Maintenance: Digital twins enable continuous monitoring of physical assets, providing real-time data on performance, usage, and potential issues. This data helps in predictive maintenance, reducing downtime, and optimizing the operational efficiency of machinery and equipment. For example, sensors on a physical machine feed data to its digital twin, which then analyzes this data to predict when maintenance is required, preventing unexpected breakdowns.
2. Simulation and Testing: Digital twins allow for the simulation of different scenarios without disrupting actual operations. This is crucial for testing new processes, equipment, or modifications in a risk-free virtual environment. Manufacturers can simulate the impact of changes on production lines, helping to identify potential problems and optimize configurations before implementation.
3. Training and Skill Development: Digital twins provide a realistic and interactive environment for training employees. Workers can interact with virtual replicas of machinery and systems, gaining hands-on experience without the risks associated with live training on physical equipment. This is particularly useful for complex or hazardous operations, where safety is a major concern.
4. Design and Development: In the design phase, digital twins enable virtual prototyping, allowing engineers to create and test digital models before physical prototypes are built. This accelerates the design process, reduces costs, and improves the quality of the final product. Virtual models can be adjusted and optimized iteratively, ensuring that the final design meets all specifications and requirements.
5. Optimizing Production Processes: Digital twins integrate with IoT devices to collect and analyze data across the production lifecycle. This helps in optimizing workflows, improving resource allocation, and enhancing overall productivity. For instance, a digital twin of a production line can identify bottlenecks and suggest process improvements, leading to more efficient operations.
6. Collaboration and Innovation: The industrial metaverse, powered by digital twins, fosters collaboration across different teams and locations. Engineers, designers, and operators can work together in a shared virtual environment, making real-time adjustments and innovations. This collaborative approach accelerates problem-solving and drives innovation by bringing together diverse perspectives and expertise.

I then asked about the future of the industrial metaverse, and the breakthrough technologies that can make it even bigger.

Future Vision of the Industrial Metaverse

1. Seamless Integration: The industrial metaverse will evolve into a unified platform where digital twins, IoT, AI, and extended reality (XR) seamlessly integrate. This platform will enable real-time data sharing and collaboration across different stages of the production lifecycle, from design and testing to production and maintenance.
2. Advanced Automation: With AI and machine learning at its core, the industrial metaverse will see increased automation in production processes. AI will enhance decision-making, optimize operations, and enable predictive maintenance, reducing downtime and improving efficiency.
3. Enhanced Collaboration: Virtual environments will facilitate global collaboration, allowing teams from different locations to work together in real-time. This will drive innovation, streamline workflows, and reduce the time-to-market for new products.
4. Sustainable Practices: The industrial metaverse will support sustainability by optimizing resource use, reducing waste, and enabling more efficient energy management. Virtual simulations will allow for testing of eco-friendly practices before implementation.

Breakthrough Technologies

1. Extended Reality (XR): XR technologies, including virtual reality (VR), augmented reality (AR), and mixed reality (MR), will provide immersive and interactive experiences. These technologies will be crucial for training, remote maintenance, and virtual prototyping, making interactions with the digital twin more intuitive and realistic.
2. Artificial Intelligence (AI) and Machine Learning (ML): AI and ML will enhance predictive analytics, autonomous decision-making, and process optimization. These technologies will enable more sophisticated simulations, real-time monitoring, and adaptive control systems within the industrial metaverse.
3. Internet of Things (IoT): IoT devices will continue to proliferate, collecting vast amounts of data from physical assets. This data will feed into digital twins, providing real-time insights and enabling more accurate simulations and predictive maintenance.
4. 5G and Advanced Connectivity: High-speed, low-latency 5G networks will be essential for the real-time data transmission required in the industrial metaverse. Improved connectivity will support remote operations, real-time collaboration, and seamless integration of various digital tools.
5. Blockchain and Distributed Ledger Technologies: Blockchain will enhance security, transparency, and traceability in the industrial metaverse. It will enable secure data sharing, protect intellectual property, and ensure the integrity of transactions and communications.
6. Edge and Cloud Computing: These technologies will provide the computational power needed for processing large datasets and running complex simulations. Edge computing will bring processing closer to the data source, reducing latency and enhancing real-time capabilities.
7. Advanced Robotics and Automation: Robotics will become more integrated with AI and IoT, enabling smarter and more autonomous machines. These robots will collaborate with humans, perform complex tasks, and adapt to changing environments within the industrial metaverse.

I then asked about the use of Agentic AI in the industrial metaverse.

Agentic AI, characterized by autonomous and intelligent agents that can perform tasks, make decisions, and learn from their environment, has significant potential to transform the industrial metaverse. These AI agents can enhance various aspects of industrial operations, leading to increased efficiency, innovation, and adaptability. Here are some ways Agentic AI can be integrated into the industrial metaverse:

1. Autonomous Operations and Decision-Making: Agentic AI can automate routine and complex decision-making processes, allowing for real-time adjustments and optimization of industrial operations. For instance, AI agents can autonomously manage production schedules, adjust machinery settings, and predict maintenance needs, reducing downtime and improving productivity.
2. Predictive Maintenance and Fault Detection: AI agents can continuously monitor equipment and systems using data from IoT sensors. They can predict potential failures before they occur and schedule maintenance activities proactively. This predictive maintenance minimizes unplanned downtime, extends equipment life, and reduces maintenance costs.
3. Real-Time Process Optimization: Agentic AI can analyze vast amounts of data from various stages of production in real-time, identifying inefficiencies and suggesting optimizations. For example, AI agents can adjust production parameters to optimize energy consumption, reduce waste, and enhance product quality.
4. Enhanced Human-Machine Collaboration: In the industrial metaverse, AI agents can work alongside human operators, providing real-time assistance, guidance, and decision support. For instance, during complex assembly processes, AI agents can offer step-by-step instructions, detect errors, and suggest corrections, enhancing human performance and reducing errors.
5. Supply Chain Management: AI agents can optimize supply chain operations by predicting demand, managing inventory levels, and coordinating logistics. They can autonomously negotiate with suppliers, manage procurement processes, and ensure timely delivery of materials, enhancing supply chain efficiency and resilience.
6. Virtual Training and Skill Development: Agentic AI can create dynamic and interactive training environments within the industrial metaverse. AI-driven virtual trainers can adapt training programs based on individual learner performance, providing personalized feedback and simulating real-world scenarios for hands-on experience.
7. Innovation and Product Development: AI agents can accelerate innovation by simulating product designs, testing prototypes, and analyzing performance data. They can explore a vast design space, identify optimal configurations, and predict the impact of design changes, significantly speeding up the product development cycle.
8. Data Analysis and Insights: Agentic AI can process and analyze large datasets generated within the industrial metaverse, extracting valuable insights and trends. These insights can inform strategic decisions, improve operational efficiency, and drive continuous improvement across the organization.
9. Security and Risk Management: AI agents can enhance cybersecurity within the industrial metaverse by monitoring network traffic, detecting anomalies, and responding to threats in real-time. They can also assess operational risks, predict potential disruptions, and implement mitigation strategies to ensure business continuity.

So, what can the Industrial Metaverse teach the Commerce Metaverse?

7

Wow!

Here is quick recap from my essay on Digital Twins in marketing, as written by Claude.

1. Digital Twins in Marketing: The essay introduces the concept of AI-powered Digital Twins as a transformative force in marketing. These twins are dynamic, AI-driven virtual representations of individual customers or customer segments that continuously evolve based on real-time data and interactions.
2. Types of Digital Twins: Two main types are discussed – Segment Twins (representing groups of customers with similar behaviors) and Singular Twins (representing individual customers). These twins enable marketers to achieve hyper-personalization (N=1) in their strategies.
3. Integration of Martech and Adtech: The essay emphasizes the importance of integrating martech and adtech to create a seamless ecosystem for digital twins. This integration enhances the accuracy and relevance of customer profiles.
4. AI-First Marketing Stack: A comprehensive stack is outlined, including foundational Large Language Models, a Foundational Marketing Model, a Fine-Tuned Enterprise Model, a Co-Marketer, and Digital Twins. This stack enables the creation of highly personalized marketing experiences.
5. Co-Marketer Concept: The essay introduces the idea of a Co-Marketer, an AI-powered marketing assistant that interacts with digital twins to optimize strategies and ensure every customer touchpoint is personalized and effective.
6. Benefits of Digital Twins: Key advantages include hyper-personalization, optimized customer journeys, implementation of generative journeys, enhanced customer lifetime value (LTV), and reduced customer acquisition costs (CAC).
7. Real-World Applications: The essay provides examples of how digital twins can be used in various aspects of marketing, including customer support, dynamic pricing, product development, cross-selling, customer retention, and enhanced analytics.

Think of the Commerce Metaverse as a Mirror World where the Co-Marketer can interact with Digital Twins of personas (Segment Twins) and persons (Singular Twins). Let’s consider some use cases and scenarios.

1. Personalised Product Recommendations: In this Commerce Metaverse, the Co-Marketer interacts with a Singular Twin of a customer named Arun. By analysing Arun’s past purchases, browsing history, and current life events (e.g., recent move to a new city), the Co-Marketer and Singular Twin collaborate to curate a personalised list of book recommendations. This could include a mix of his favourite genres, guides about his new city, and new releases that align with his evolving interests. This list is built via collaboratively through a conversation with the digital twins (Co-Marketer and Arun).
2. Targeted Marketing Campaigns: The Co-Marketer engages with a Segment Twin representing “Young Urban Professionals”. Through this interaction, it gains insights into the segment’s current trends, pain points, and aspirations. Based on this, the Co-Marketer designs a marketing campaign for a new line of productivity and self-improvement books, tailoring the messaging, visuals, and channel strategy to resonate specifically with this segment.
3. Dynamic Pricing Strategy: In the Commerce Metaverse, the Co-Marketer simulates interactions with multiple Singular Twins to test various pricing strategies for a highly anticipated new release. By observing how different customer profiles react to various price points and bundle offers, the Co-Marketer can recommend an optimal pricing strategy that maximises both sales and customer satisfaction.
4. Predictive Customer Service: The Co-Marketer regularly interacts with Singular Twins to identify potential customer service issues before they arise. For instance, it might notice that a customer’s Singular Twin shows a pattern of abandoning e-book downloads midway. The Co-Marketer can then proactively reach out to the real customer with troubleshooting tips or offer assistance, preventing frustration and potential churn.
5. Community Building and Event Planning: In the Commerce Metaverse, the Co-Marketer interacts with multiple Segment Twins representing different reader communities (e.g., “Mystery Lovers”, “Sci-Fi Enthusiasts”, “Cooking Aficionados”). Through these interactions, it identifies common interests, preferred event formats, and optimal timing. Based on these insights, the Co-Marketer plans a series of virtual author meet-and-greets and book club events, tailored to each community’s preferences, significantly boosting engagement and fostering a sense of belonging among customers.

This is no longer in the realm of science-fiction. The Age of Agentic AI is dawning, bringing these new interactions to life. As the Internet of Things connects physical devices, the Interaction of Twins will create a dynamic ecosystem of virtual entities, revolutionising how businesses understand and engage with their customers. This new paradigm promises unprecedented levels of personalisation and predictive capability in marketing and customer relationships, creating for “Wow” moments and experiences.

8

Parallels

I asked ChatGPT and Claude to imagine the future of the Commerce Metaverse, with learnings from the Industrial Metaverse.

ChatGPT

Digital Twins

• Industrial Metaverse:

• • Role: Digital twins represent machines, production lines, and entire factories, enabling real-time monitoring, simulation, and optimization.
  • Benefits: Enhance operational efficiency, predictive maintenance, and process optimization.

• Commerce Metaverse:

• • Role: Digital twins represent customer segments (Segment Twins) and individual customers (Singular Twins), providing detailed insights into behaviors and preferences.
  • Benefits: Enable hyper-personalization, targeted marketing, and improved customer experience.

2. Agentic AI

• Industrial Metaverse:

• • Role: Autonomous AI agents manage production schedules, optimize processes, and predict maintenance needs.
  • Benefits: Reduce downtime, enhance productivity, and automate decision-making.

• Commerce Metaverse:

• • Role: Co-Marketers, powered by AI, interact with digital twins to personalize recommendations, manage dynamic pricing, and enhance customer service.
  • Benefits: Optimize marketing strategies, reduce ad waste, and provide predictive customer service.

3. Extended Reality (XR)

• Industrial Metaverse:

• • Role: XR technologies (VR, AR, MR) provide immersive training environments, virtual prototyping, and remote maintenance support.
  • Benefits: Improve training effectiveness, reduce prototyping costs, and enable remote operations.

• Commerce Metaverse:

• • Role: XR technologies create virtual shopping environments, interactive product demonstrations, and engaging marketing campaigns.
  • Benefits: Enhance customer engagement, provide immersive experiences, and facilitate virtual events.

4. Internet of Things (IoT)

• Industrial Metaverse:

• • Role: IoT devices collect data from physical assets, feeding into digital twins for real-time monitoring and analysis.
  • Benefits: Enable predictive maintenance, optimize resource use, and enhance operational visibility.

• Commerce Metaverse:

• • Role: IoT devices collect data from various touchpoints, providing insights into customer interactions and behaviors.
  • Benefits: Enable real-time personalization, improve customer insights, and optimize marketing efforts.

5. Data Integration and Analytics

• Industrial Metaverse:

• • Role: Integrates data across production processes, enabling comprehensive analysis and real-time decision-making.
  • Benefits: Improve process optimization, enhance decision-making, and drive continuous improvement.

• Commerce Metaverse:

• • Role: Integrates customer data across touchpoints, enabling detailed customer profiling and predictive analytics.
  • Benefits: Enhance personalization, improve marketing effectiveness, and provide actionable insights.

6. Blockchain and Security

• Industrial Metaverse:

• • Role: Blockchain ensures data security, transparency, and traceability in industrial operations.
  • Benefits: Protects data integrity, secures transactions, and enhances trust.

• Commerce Metaverse:

• • Role: Blockchain secures customer data, protects digital identities, and ensures the integrity of transactions.
  • Benefits: Enhances data privacy, builds customer trust, and secures marketing operations.

7. Edge and Cloud Computing

• Industrial Metaverse:

• • Role: Provides the computational power for processing large datasets and running complex simulations.
  • Benefits: Reduces latency, enhances real-time capabilities, and supports advanced analytics.

• Commerce Metaverse:

• • Role: Supports real-time data processing, enabling timely insights and responsive marketing actions.
  • Benefits: Enhances real-time personalization, supports complex analytics, and improves customer interaction.

8. Advanced Robotics and Automation

• Industrial Metaverse:

• • Role: Integrates robotics with AI and IoT, enabling autonomous operations and human-robot collaboration.
  • Benefits: Increases operational efficiency, enhances safety, and supports complex tasks.

• Commerce Metaverse:

• • Role: Uses AI to automate customer interactions, manage campaigns, and optimize marketing processes.
  • Benefits: Reduces manual effort, enhances campaign effectiveness, and improves customer satisfaction.

By drawing parallels between the Industrial Metaverse and the Commerce Metaverse, it becomes evident that advanced technologies like digital twins, Agentic AI, XR, IoT, and blockchain play a crucial role in transforming both sectors. These technologies enable real-time insights, enhanced personalization, and optimized operations, leading to more efficient, responsive, and customer-centric marketing strategies. The integration of these technologies will create a dynamic ecosystem where businesses can better understand and engage with their customers, ultimately driving growth and innovation in the digital age.

Claude

1. Digital Twins:
   • Industrial: Digital replicas of physical assets, machines, and processes
   • Commerce: Digital replicas of individual consumers (Singular Twins) and market segments (Segment Twins)
2. Real-time Monitoring:
   • Industrial: Continuous monitoring of equipment performance and production processes
   • Commerce: Real-time tracking of consumer behavior, preferences, and interactions across touchpoints
3. Predictive Maintenance:
   • Industrial: Anticipating equipment failures and scheduling proactive maintenance
   • Commerce: Predicting customer churn and proactively addressing issues to maintain customer relationships
4. Simulation and Testing:
   • Industrial: Virtual testing of new manufacturing processes or equipment configurations
   • Commerce: Simulating consumer responses to new products, services, or marketing campaigns
5. Optimization:
   • Industrial: Optimizing production processes for efficiency and output
   • Commerce: Optimizing marketing strategies, customer journeys, and personalization for maximum engagement and conversion
6. Training and Skill Development:
   • Industrial: Virtual training environments for workers
   • Commerce: AI-powered learning systems for marketers to improve skills and test strategies
7. Collaboration:
   • Industrial: Cross-functional teams working together in virtual environments
   • Commerce: Marketers collaborating with AI Co-Marketers and interacting with Digital Twins
8. Data Integration:
   • Industrial: Combining data from various sensors and systems
   • Commerce: Integrating data from multiple channels, CRM systems, and external sources
9. Sustainability:
   • Industrial: Optimizing resource use and reducing waste
   • Commerce: Personalizing experiences to reduce marketing waste and improve efficiency
10. AI and Machine Learning:
    • Industrial: AI-driven automation and decision-making in manufacturing
    • Commerce: AI-powered personalization, predictive analytics, and automated campaign optimization

By leveraging these parallels, the Commerce Metaverse can adopt and adapt the successful strategies and technologies from the Industrial Metaverse to create a more efficient, personalized, and effective marketing ecosystem.

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[Rajesh] The Commerce Metaverse, powered by Agentic AI and Digital Twins, stands poised to revolutionise marketing and customer engagement. By drawing inspiration from the Industrial Metaverse, it promises to create a dynamic, responsive ecosystem where businesses can understand and interact with their customers at unprecedented levels of personalisation and efficiency. As we stand on the brink of this new era, the convergence of AI, digital twins, and metaverse technologies offers exciting possibilities for creating meaningful connections, driving innovation, and delivering value. The future of marketing lies not just in selling products, but in crafting unique, personalised experiences that resonate with each customer, ushering in a new age of commerce where every interaction has the potential to be a “Wow” moment. The Commerce Metaverse is the key to unlock the Profipoly future.