Why We Build Virtuals Protocol

$100billion+ market to be disrupted

AI is set to disrupt the entertainment industry as profoundly as it has the productivity sector.

With firsthand experience, we see how AI has the potential to bring significant changes to humanity, especially since the introduction of GPT-3 in 2023. While much of today’s focus has been on increasing productivity—think AI secretaries, AI in education, and AI driving—there has been very little effort directed toward the entertainment and gaming industry.

The disruption of the entertainment industry by AI is massively overlooked by most builders and capital allocators. Yet, we deeply believe there is a market worth over $100 billion waiting to be disrupted by AI in the coming year, if not months. Specifically, in three areas:

1. Gaming: Imagine moving beyond static games to interactive, dynamic experiences with unique, personalized content for individual gamers. It’s no longer about playing a game; it’s about living it with AI agents that understand and respond to you. AI agents will bring unique gaming experiences to every single gamer based on emergent behavior. We expect video game giants like Tencent and Activision Blizzard to embrace AI agents in their games, creating new genres and experiences.

2. Relationships: AI agents will offer new experiences, addressing loneliness and providing companionship beyond standard chatbots and dating apps. Picture an AI friend who’s available 24/7 to talk, play, and connect with you on a deeper level. This market is not just about character.ai or chatbot companions; it competes with major dating apps like Tinder and Bumble.

3. Dynamic Content: Generative AI and AI agents will disrupt static, one-to-many content from platforms like Netflix and traditional TV, creating personalized and dynamic viewing experiences. Imagine TV content that adapts to your preferences dynamically, offering a unique experience for every viewer.

This trend is inevitable, and we truly believe in it. Entertainment and media, which account for 60% of global GDP through household consumption, have evolved from TV ads to internet ads, and now to influencers and creators. It is painfully obvious that AI agents will capture the mindshare of end consumers, replacing content creators as the final frontier in the entertainment and media industry.

Despite the clear trajectory, few are discussing this impending shift. We at Virtuals Protocol are ready to capitalize on this inevitable trend. We aim to build the largest AI agent library that brings companionship, entertainment, and value to society in a democratized manner.

That is why Virtuals Protocol exists. We’re not just predicting the future; we’re building it.