By: Jaime McMahon, Chief Digital Officer — LineZero

According to McKinsey & Co., in 2022, over $120 billion was invested in the metaverse, and within the next five years, more than 15% of corporate growth is expected to be generated from this rapidly evolving space. The metaverse is undeniably a transformation that businesses can’t afford to overlook.

However, adopting corporate metaverse technology presents distinct challenges. As this is a developing field, businesses must carefully navigate compliance and regulatory requirements before fully embracing this shift.

The Benefits of the Corporate Metaverse

One aspect of the corporate metaverse that has led to hesitation in its adoption is that use cases are still being developed. However, thanks to substantial investments by several large companies in early use cases — like virtual training and education — several have already been established. By using metaverse technology and starting with training and education, businesses will see the most immediate, positive effects after integrating it into their operations.

Using interactive training exercises in the metaverse has several benefits over traditional methods, such as lecturing or videos. This approach fosters greater employee engagement, not only during the training process but also in their day-to-day work. Research shows that engaged employees are 87% less likely to leave their positions, meaning businesses can see improved retention rates by incorporating this technology.

Companies can also experience indirect benefits, such as enhanced customer satisfaction. When employees have better experiences, they are more likely to provide higher-quality service to customers. In fact, one study suggests that this improvement can enable businesses to charge up to a 16% premium. Metaverse-based training activities, such as immersing employees in the customer’s perspective, can further boost empathy and improve customer interactions.

Ethics in the Corporate Metaverse

The greatest consideration for business leaders when integrating corporate metaverse technology into their operations is how they approach this transformation. It’s crucial to initiate this change with people first in mind. If your approach isn’t focused on helping people — whether they’re employees or customers — you may need to reconsider your strategy. Every metaverse use case should aim to enhance the experience beyond what current 2D methods offer.

Many businesses are concerned about the ethical integration of metaverse technology into their operations, particularly when asking employees to engage in what is essentially a new digital environment. Does this virtual space require us to reconsider individual rights in a unique way? For example, in the real world, there are certain expectations when it comes to physical space. If someone “invades” another’s personal space, it can create conflict. In the metaverse, does invading another person’s sightline constitute an invasion of personal space?

Thus, it’s essential for companies that wish to use corporate metaverse technology to create boundaries that allow their employees to feel comfortable with this new virtual environment. The easiest way to do so is to create a clear set of policies that outline acceptable and unacceptable uses of this technology and acceptable and unacceptable behaviors while using it.

Regulations in the Corporate Metaverse

Still, businesses must ensure compliance with not just internal policies but also certain regulations and legal guidelines that govern metaverse technology. Regulation is emerging for the metaverse in several categories, including intellectual property (IP) law, conduct, privacy, and safety, so businesses using this technology must ensure compliance with these strict standards.

One important regulation that companies in the EU must consider is the General Data Protection Regulation (GDPR). Applying to metaverses controlled or processed by providers in the European Union, the GDPR places restrictions on what data can be collected and used to create advertising about a user’s actions in the metaverse. 

The creation of digital avatars in the metaverse has sparked ongoing debate, particularly regarding whether these avatars should be considered personal data. This controversy is not new, but it continues to raise questions around privacy and identity in virtual spaces.

Consider Facebook’s ability to generate digital avatars from photos and the legal concerns this raises. Some believe that if an avatar closely mirrors a user’s appearance — capturing details like skin tone, body shape, or facial features — it should be treated as protected personal data. Others argue it’s difficult to determine whether an avatar is derived from real information or is entirely artificial, complicating the issue of privacy and data protection. Therefore, it’s essential for businesses to tread carefully.

Building a Culture of Acceptance for the Corporate Metaverse

It’s important to remember that anytime you embrace a new technology, there will be some level of risk involved. There’s always a chance that the technology will malfunction, and there’s also the chance that your employees won’t find these new tools useful or helpful and will reject them altogether. 

Nevertheless, it’s important to manage these risks. Identify any shortcomings the technology may have and find ways to address them or even turn them into an opportunity for further growth.

One step employers must take when first implementing corporate metaverse technology is to remain open to feedback. After all, the people who will know the most about whether the technology works are those who actually use it. Furthermore, those who have the opportunity to use this innovative new technology may discover exciting new use cases that leaders may not have thought of themselves. 

Remember, the metaverse is all about fostering an environment of collaboration. If business leaders hope to ethically explore the potential of metaverse tech, they must listen to their employees’ needs and feedback.

The corporate metaverse is filled with potential, and embracing this technology could have several benefits for businesses — from improved employee retention to an improved customer experience. However, to embrace this technology ethically and responsibly, businesses must understand its implications and adhere to any governmental regulations that may come into play regarding this emerging landscape.

— Jaime McMahon is the Chief Digital Officer at LineZero. Driven by a passion for empowering organizations to harness their digital potential, Jaime brings extensive experience in the technology industry. He has worked with businesses of all sizes to foster growth through digital transformation. As a sought-after speaker, Jaime regularly presents on various technology solutions at industry-leading events across North America. He is dedicated to democratizing technology, shifting its role from a cost center to a strategic driver of positive business outcomes. At LineZero, Jaime applies his expertise to help businesses achieve their goals and streamline operations for lasting success.

Published by: Martin De Juan