AI Can Build New Worlds In the Metaverse. It’s Creating Serious Ethical Questions

May 14, 2026

The growth in AI has opened the door to increased possibilities for the metaverse and the most popular forms of digital augmentation, including augmented reality (AR) and virtual reality (VR). However, this integration brings legal and ethical challenges that must be addressed before these technologies become a staple in everyday life.

Expanding Digital Environment Capabilities

We now live in a world where multi-modal large language models can generate video with a single text prompt. The idea that this capability could be applied to immersive, 3D environments doesn’t seem far off.

“Generative AI might soon be able to turn AR from a display device into something that feels more like an intelligent assistant layered onto the world,” said IEEE Senior Member Vaibhav Tupe.

But those immersive and expansive capabilities also raise difficult questions. AI-powered virtual assistants or influencers could steer users toward decisions they might not otherwise make, especially if those systems are designed to persuade rather than simply inform. Immersive environments may also collect unusually sensitive personal data, including information about where users look, how they move, what they respond to, and even how their emotional states might be inferred. And if the AI systems shaping these spaces are biased, those biases could influence how people are represented, perceived, or treated in AR and VR environments.

“The time to build legal and ethical frameworks is before widespread adoption,” said IEEE Senior Member Shaila Rana.

Mitigating Bias

AI bias has long been an issue for AI developers and researchers. Training AI on inherently biased data leads to outputs that are skewed and inaccurate.

“One of the most underappreciated risks in AI-powered immersive environments is the amplification of bias,” Rana said. “When you read biased content, there is cognitive distance between you and the information. But in a VR or AR environment, bias doesn’t just inform your perception; it shapes what you see, hear and feel in an environment designed to mimic reality,” she said.

Managing Privacy and Data Security

When humans interact with AI and VR technologies, they are sharing large amounts of personal data with each system.

“Generative AI can further analyze and exploit this data to manipulate user behavior or create highly personalized, potentially manipulative experiences, creating new privacy risks beyond traditional data protection laws,” said IEEE Member Zhang Man.

Furthermore, the legal landscape is fragmented. IEEE Senior Member Keeley Crockett points out that because the headset hardware and the software running on it are often run by different legal entities, each with their own privacy notices, roles and obligations. Data governance is jumbled.

Environmental Influences based on Biometrics

One of the most invisible concerns involves biometric adaptation. AI in immersive systems can adapt environments based on gaze, posture, heart rate or emotional state.

“When AI generates the space around you, it can subtly shape emotional state, attention and decision-making in ways that are largely invisible to the user. That is qualitatively different from a website adjusting its layout,” said IEEE Senior Member Eleanor Watson.

This can lead to cognitive manipulation and nudging in environments, such as retail stores.

“AI can adapt environments in real time based on micro-reactions thus enabling neuro-targeted persuasion such as adjusting ads or avatars when your attention spikes,” adds IEEE Senior Member Ayesha Iqbal.

“Existing privacy laws focus on identifiable personal data; not real-time psychophysiological inference used for behavioral steering,” she continued.

Designing a Responsible Future

AI and the metaverse offer a future of vast digital possibilities, yet it also demands a proactive approach to governance. Establishing robust ethical frameworks today, ensures that the digital landscape is built on transparency and effective regulation.

Learn more: To dig deeper into the world of ethics and legal concerns related to the metaverse, check out this article from the IEEE Computer Society.