For centuries, theatre performances, opera, and sports were the primary means of entertainment for both nobles and commoners.
The 20th century shifted the perspective, as new art forms like cinema took hold among the population, while affordable TV sets made their way into households. Fast-forward another century, and entertainment has moved from a public spectacle to a mostly private affair.
As cinema attendance keeps on dwindling worldwide, and the death of movie theatres seems impending, global streaming services enjoy unparalleled growth and momentum. Whether in gaming or music, physical media are increasingly replaced by digital platforms.
This revolution in consumer habits is often underpinned by advanced technologies, with artificial intelligence being chief among them. So, let’s explore some of the real-life applications of AI in entertainment.
A new Metaverse era
On the face of it, the metaverse seems as good as dead in 2025. No matter how much money tech luminaries like Mark Zuckerberg poured into their virtual reality platforms, ambitious projects such as Meta’s Horizon Worlds never devolved into more than an empty land.
That said, the metaverse hasn’t completely lost its pulse, moved forward by the convergence between its futuristic concept and artificial intelligence.
The next major leap toward the metaverse could be the mass market adoption of AI-powered smart glasses promising a far more immersive experience in the digital space.
Controlled through a wristband, Meta’s Hypernova glasses aim to emerge as the next big thing for personal computers. Meanwhile, gaming platforms like Roblox and Fortnite keep pushing the boundaries of the metaverse.
AI musical acts
Back in 2020, virtual concerts staged in the Fortnite metaverse pulled in millions of viewers. From Travis Scott to Ariana Grande, several A-listers made their digital debut. Five years later, these digital renditions of real-life artists have been shoved aside by their AI-generated peers.
Many creators initially denied any AI use, such as the minds behind the Velvet Sundown rock band which amassed more than a million streams on Spotify. Likewise, new country act Breaking Rust recently smashed the Billboard charts.
AI-generated music falls into somewhat of a gray area, but more and more listeners are becoming aware of the true origins of the songs they hear. Another Billboard-charting phenomenon, AI-driven R&B artist Xania Monet has gained nearly 800,000 followers across social media.
Securing a multimillion-dollar record deal for her digital persona, Monet’s creator is one of the latest songwriters to embrace generative AI platforms such as Udio and Suno to produce studio-quality tracks, redefining the lines of human creativity in music.
AI-powered non-playable characters
The video game industry is embracing AI agents to enrich its imaginary worlds. Unlike traditional rule-based AI, which relies on fixed patterns, agentic AI describes autonomous systems capable of learning, reasoning, and acting independently within ever-changing environments.
For developers, this means creating non-playable characters that genuinely respond to each player’s action, whether through adaptive dialogue options or context-aware decisions that carve a new narrative path.
Powered by agentic AI, NPCs may soon recall a player’s past choices and adjust their personalities accordingly, carrying grudges throughout a session or warming up to a player over time, adding deeper layers of in-game relationships.
Industry giants like Microsoft have long partnered with AI startups like Inworld to generate dynamic stories and scripts. At the crossroads of blockchain technology and gaming, AI-driven NPCs have also started to be created and sold as NFTs in the Web3 ecosystem.
Personalized gaming driven by AI
When it comes to getting their entertainment fix, consumers increasingly seek recognition of their individual needs and priorities. Brands are meeting these expectations by offering personalized interactions with their users, while targeted promotions are gaining traction within the gaming industry.
AI-powered incentive marketing has revolutionized iGaming, as the technology can monitor player behavior and preferences, enabling platforms to fine-tune their recommendations in real-time and deliver tailored promotions.
With AI, online gambling has never been more accessible for players worldwide. Newcomers can benefit from customized casino deals like welcome packages, which often comprise no-deposit bonuses, allowing them to dig into a website’s library risk-free.
From free slots to real-money progressive slots, thousands of gaming options are readily available. Many platforms also leverage artificial intelligence to roll out chatbots and customer services reachable 24/7.
Although its ethical implications are far-reaching, artificial intelligence can foster innovation and creativity, helping emerging artists enter the music industry or gifted developers craft ever-so-immersive digital universes. Spanning the entire industry, AI stands as the next frontier for entertainment.
