MIT Sloan Management Review Article on Preparing for the Risky World of Extended Reality

XR, the reality-bending technology that will have many applications across industries, is still in its early stages. But leaders must strategize around implementation risks now.

T.S. Eliot wrote that “humankind cannot bear very much reality.” Will it be any easier to bear with extended reality, with its high risks and potential rewards?

The development and use of extended reality, or XR — an umbrella term that encompasses virtual reality, augmented reality, and other technologies that blur the line between the real world and simulated worlds — has reached a tipping point. No longer will these technologies primarily serve as tools for gaming and other forms of entertainment. Consumer spending on XR is estimated to rise from $5 billion spent in 2018 to $40 billion in 2023 while industry spending outstrips it, surging from $4 billion to $121 billion in that period. And that investment will go toward a wide range of innovations, such as the ability to conduct remote surgery and training, and applications that will increase productivity on the factory floor.