AI Replaces Chief Metaverse Officers

Metaverse leaders find themselves abandoned by companies that have retreated from the previously popular digital domain, while artificial intelligence remains a prominent focus.

Advertising giant Publicis Groupe SA hired an unusual leader in mid-2022 — a lion-headed digital Avatar named Leon, who would act as a “metaverse manager” guiding clients through a virtual world that had gained real attention.

His moment in the spotlight didn’t last long.

Five months later, ChatGPT debuted, and the buzz surrounding the metaverse ever since Mark Zuckerberg changed Facebook’s name to Meta Platforms Inc. moved into artificial intelligence. Leon and the other officers focused on the metaverse—an immersive digital reality where humans can interact with each other—and it quickly became an endangered species.

We are on WhatsApp channels. Click to join.

Executives from Walt Disney Co., Procter & Gamble Co. and Creative Artists Agency, who led the metaverse efforts, left. Leon’s LinkedIn profile (yes, he had one) no longer exists, and there is no mention of him on the company’s website, except for his introductory press release. Publicis Groupe declined to comment on the record.

Instead, companies are looking to appoint AI leaders, with recent hires by Accenture and GE HealthCare. A few metaverse leaders have even reinvented themselves as AI experts, skillfully switching from one hot technology to another. According to a study by executive search and management consulting firm Heidrick & Struggles, compensation packages average well over $1 million. Last week, Publicis said it would invest 300 million euros ($327 million) over the next three years in artificial intelligence technology and talent.

“It’s been a long time since I’ve had a conversation with a client about the metaverse,” said Fawad Bajwa, global head of artificial intelligence at executive search and advisory firm Russell Reynolds Associates. “The metaverse may still exist, but it’s a lonely place.”

The C-suite overhaul illustrates the fickle nature of technology trends and the difficulty companies have in separating hype from reality.

Most companies have largely moved on from the metaverse. The word was uttered just twice in earnings calls for S&P 500 companies last quarter, compared to 63 times in the first quarter of 2022, according to Bloomberg transcript data. That year, eight out of 10 CEOs said they were either hiring dedicated talent with industry expertise or expanding the responsibilities of their executive teams, according to Russell Reynolds. All were chasing a piece of a global business opportunity that McKinsey & Co. consultants optimistically estimated at the time could be worth $5 trillion by 2030.

Apple’s decision to refer to its new Vision Pro mixed-reality headset as a “spatial computing device” without any metadata is another sign that “the focus has definitely shifted,” according to CEO Nada Usina. – Founder of NU Advisory Partners, a board search and advisory firm focused on boards and the c-suite program. Microsoft Corp. this month overtook Apple as the world’s most valuable public company, thanks in large part to investor enthusiasm for its aggressive investment in artificial intelligence. Even Meta’s Zuckerberg—who once proclaimed the metaverse to be “the next frontier”—has recently shifted his focus to creative AI after spending billions on metaverse initiatives that have borne little fruit.

All of this has left some metahumans looking for pastures new or changing roles. Joanna Popper, CAA’s head of metaverse, left the talent agency after just over a year and then served as a “board watcher” at entertainment-focused AI startup Metaphysic.ai, which has a partnership with CAA. (Popper did not respond to a request for comment.) Pratik Thakar, who spearheaded Coca-Cola’s metaversal efforts with its interactive Real Magic marketing campaign in 2021, is now the beverage giant’s global head of generative AI.

But not every metaverse guru can keep up. The skill sets of AI leaders “are quite different,” Bajwa said. “You don’t want to just reassign someone. You don’t get the depth of expertise you want.”

At least one metaverse leader fell victim to a corporate coup. Disney’s Michael White left when Bob Iger returned to lead the House of Mouse, abandoning White during a larger overhaul of the metaverse department. He is now the chief product officer of the Amazon.com Inc.-owned Zoox car business. Usually there’s less palace intrigue: P&G’s Ioana Matei quietly left the Pampers maker last summer and now leads innovation at the global agribusiness. White did not respond to Bloomberg’s requests for an interview, and Matei declined to comment.

Some metaverse executives remain, including Yaiza Rubio at Telecom of Spain and Nelly Mensah at LVMH Moët Hennessy Louis Vuitton SE. But their expertise spans several emerging technologies, such as the digital ledger blockchain. And even companies looking to explore the metaverse can choose a consultant now, said Aliceson Robinson of Heidrick & Struggles. “There is still interest in Metaversum to engage with consumers, but not as a C-suite rental,” said Robinson, the executive search firm’s global head of consumer, technology, entertainment and media.

Jeff Wong, global head of innovation at professional services giant Ernst & Young LLP, said his department has probably halved its metaverse investment over the past year. “Some people make a joke out of it, like it’s done and dusted,” he said, though he’s not one of them. “The metaverse can hold a lot of promise,” Wong said.

In contrast, EY now has two senior executives leading its global AI program and ensuring AI is woven into the business, he said. “This is a big deal for us,” Wong said.

Also read these top stories today:

Video surveillance! US police must now obtain warrants to obtain video footage from Amazon Ring devices. But what about the millions of other cameras watching us? Know all about it here.

Rising India! Indian smart electronics companies like Lava and Qubo get high marks. Check it out now here.

Loss of an iPhone manufacturer! An Apple veteran who helped launch efforts to develop an electric vehicle is leaving for Rivian Auto, marking another big departure for the iPhone maker. Read all about it here.