Notice how the power of AR technology is reshaping business: from immersive experiences in retail to productivity boosts in logistics and manufacturing.
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| Find out how Augmented Reality (AR) is used in businesses to boost sales, improve training, and streamline operations. See its key benefits and real-world examples. Image/ Illustration: ChicHue |
Tech Desk — January 14, 2025:
In today’s fast-paced, technology-driven world, businesses are constantly seeking new ways to improve customer experiences, streamline operations, and stay competitive. One of the most innovative and transformative technologies to emerge in recent years is Augmented Reality (AR). While it was once considered a niche technology primarily used in gaming and entertainment, AR has now become a vital tool for businesses across various industries. From marketing and product visualization to employee training and inventory management, AR is revolutionizing the way businesses operate. Let’s dive into how augmented reality is being used to reshape the business world.
What is Augmented Reality?
Augmented Reality (AR) is a cutting-edge technology that blends the digital world with the physical one in real-time. Unlike Virtual Reality (VR), which immerses users in completely virtual environments, AR enhances our existing surroundings by overlaying digital content such as images, sounds, or information. This technology creates an interactive experience, making the real world more dynamic by adding virtual elements.
AR can be experienced through devices like smartphones, tablets, or specialized glasses. These devices use cameras, sensors, and processors to detect the physical environment and superimpose digital elements onto it, providing an engaging and informative interaction. This process allows users to engage with their surroundings in entirely new ways, offering immersive experiences that are both practical and entertaining.
By bridging the gap between the digital and physical worlds, AR is revolutionizing how we perceive and interact with our environment. Whether used for navigation, training, or entertainment, AR enriches real-world experiences, making them more engaging, informative, and personalized.
How Does Augmented Reality Work?
Augmented Reality works by using hardware and software to overlay digital content onto the real world. The process begins when a device, like a smartphone or AR glasses, uses cameras and sensors to capture the physical surroundings. The AR system processes this information and determines where and how to place virtual objects in the real world. The software then projects the digital content in the appropriate location, and the user can interact with it via touch, gestures, or voice commands. The digital objects appear as if they exist within the physical space, creating a highly immersive experience.
What Technology is Used in AR?
Augmented Reality relies on various technologies to function. These include computer vision, depth tracking, SLAM (Simultaneous Localization and Mapping), sensors, and display technologies. Computer vision enables the AR system to interpret the environment by recognizing surfaces and objects. Depth tracking helps measure the distance between the user and objects in the real world, allowing for the accurate placement of virtual objects. SLAM is crucial for mapping the environment and ensuring that the virtual elements remain stable as the user moves through space. The use of sensors, such as accelerometers, gyroscopes, and magnetometers, helps track the user's movements and orientation, ensuring that the AR experience remains responsive and accurate.
Moreover, AR relies heavily on display technologies to present the virtual elements. These displays can be through devices such as smartphones, tablets, smart glasses (like Microsoft HoloLens), or even heads-up displays in vehicles. Augmented reality software, like ARKit (for Apple devices) and ARCore (for Android devices), helps power these experiences by providing the necessary tools for developers to create AR applications.
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| Image/ Illustration: ChicHue |
How is Augmented Reality Used in Businesses?
Augmented Reality (AR) is rapidly transforming how businesses operate across various industries. By blending the digital and physical worlds, AR offers unique opportunities to enhance customer engagement, streamline operations, and boost productivity. Businesses are increasingly adopting AR to provide immersive experiences, improve efficiency, and increase sales. Below are some of the key ways AR is being used in business.
One of the most powerful applications of AR in business is marketing. AR enables businesses to create interactive and immersive experiences that allow customers to engage with products in new ways. For instance, retail companies like IKEA use AR to offer customers the ability to visualize furniture in their own homes before making a purchase. Through AR, customers can virtually place items in their space, giving them a better sense of how they would look and fit. This not only improves the shopping experience but also helps customers make more informed decisions, leading to higher conversion rates.
Additionally, AR is revolutionizing advertising. Brands are using AR to create dynamic ads that customers can interact with. This technology allows businesses to transform traditional print materials like brochures and business cards into interactive content. For example, AR-enabled print ads can display videos, product demos, or 3D models when scanned with a smartphone, creating a more engaging and informative experience for customers.
Beyond customer-facing applications, AR is proving valuable in improving internal operations. In industries like manufacturing and logistics, AR helps streamline processes by providing employees with real-time data and instructions. For example, warehouse workers can use AR glasses to receive live inventory updates, hands-free navigation, and step-by-step guidance on how to pick, pack, or ship items. This reduces errors, improves efficiency, and minimizes training time.
In product development, AR allows designers and engineers to visualize and collaborate on products in real-time, regardless of their physical location. Companies like BMW have integrated AR into their design and prototyping processes to reduce the need for physical prototypes, which saves both time and money. By allowing teams to virtually explore and modify designs, AR accelerates product development and enhances collaboration across different departments and locations.
AR is also making waves in employee training and safety. Traditional training methods can be time-consuming and costly, but AR enables businesses to deliver interactive, hands-on training experiences without the need for physical materials. For example, AR simulations can teach employees how to operate machinery, troubleshoot problems, or even perform repairs. This is particularly valuable in industries such as aviation, manufacturing, and healthcare, where safety and precision are critical.
Furthermore, AR is improving workplace safety by providing real-time warnings and hazard alerts. In industries like construction and mining, AR glasses can overlay safety instructions or show potential risks in a worker’s field of view, helping prevent accidents and ensuring compliance with safety regulations.
As businesses continue to explore the potential of Augmented Reality, its applications will only expand. From revolutionizing marketing and customer engagement to optimizing operations, AR is transforming industries and offering businesses a competitive edge. By leveraging AR technology, companies can not only improve their efficiency but also create deeper connections with customers, leading to increased sales and brand loyalty.
What Sensor is Used in AR?
AR systems typically use a variety of sensors to capture real-world data and deliver immersive experiences. Some of the most common sensors used in AR include:
Cameras: Cameras are the most crucial sensor in AR systems, as they capture live video of the environment to be augmented with virtual content.
Accelerometers: These sensors measure the acceleration and orientation of the device, allowing it to track movement in the physical space.
Gyroscopes: Gyroscopes help measure the rotational movement of the device, providing stability and accuracy to the AR experience.
Magnetometers: These sensors detect the magnetic field, helping the AR system understand the device’s orientation and improve spatial awareness.
Proximity Sensors: These are used to detect the presence of objects or the user, ensuring the AR experience adapts accordingly.
By combining input from these sensors, AR systems can accurately place virtual objects in the real world and ensure a seamless user experience.
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| Image/ Illustration: ChicHue |
Is Augmented Reality an AI?
Augmented Reality (AR) and Artificial Intelligence (AI) are distinct technologies, though they can complement each other. AR focuses on overlaying digital content onto the real world, while AI involves creating machines that can perform tasks that typically require human intelligence, such as learning, reasoning, and problem-solving.
However, AI can enhance AR experiences by enabling more sophisticated interactions. For instance, AI-powered image recognition can help AR systems better understand the environment, recognize objects, and respond to user inputs in more intuitive ways. AI algorithms can also be used in AR to create smarter, more personalized experiences by learning from user behavior and adapting accordingly. This synergy between AR and AI is evident in applications like virtual assistants and facial recognition systems, where AI drives the intelligence behind the AR interface.
Marketing and Sales: Transforming Customer Experiences
One of the most exciting applications of AR in business is its impact on marketing and sales. AR enables businesses to engage customers in new, interactive ways that were previously unimaginable. The most common use case for AR in marketing is its ability to offer immersive, interactive experiences that allow customers to "try before they buy." For instance, furniture retailers like Wayfair and Ikea have developed AR applications that allow customers to visualize how a piece of furniture will look in their home, without having to visit a physical store. This feature not only enhances the customer experience but also helps increase buyer confidence, as they can see how products fit into their spaces.
In fact, a 2019 study by Deloitte found that 80% of customers said they would be more likely to make a purchase if they could experience the product via AR. With figures like these, businesses are increasingly integrating AR into their marketing strategies to enhance customer satisfaction and drive sales.
Moreover, AR allows businesses to enhance their physical and digital marketing materials. For example, AR can turn static print ads, such as brochures, magazines, and business cards, into dynamic, interactive content. A customer can scan a business card with their smartphone to instantly access contact information or even a promotional video about the business. This type of immersive marketing helps brands create a memorable experience, increasing customer engagement and loyalty.
Additionally, AR can help businesses increase brand awareness and value. Through immersive, engaging campaigns, companies can generate buzz and excitement around their products or services, which can help differentiate them from competitors. Coca-Cola and Pepsi, for example, have leveraged AR in innovative advertising campaigns that engage customers in unique, fun ways, increasing brand visibility and customer engagement.
What is Augmented Reality Used For?
Augmented Reality is used across various industries for a multitude of purposes. In marketing, AR helps businesses engage with customers through interactive advertisements and virtual try-on experiences. In product design and retail, AR allows customers to visualize products in their environment before purchasing. AR is also used in industries like healthcare, where it assists with surgeries and medical training by overlaying digital information onto the patient’s body. In construction and manufacturing, AR helps visualize complex designs and provides step-by-step assembly instructions. The applications of AR are vast, ranging from enhancing user experience to improving operational efficiency.
Amazon, for example, has revolutionized online shopping with its AR app, Amazon AR View, which allows users to visualize thousands of products in their home before buying them. This AR tool not only enhances the shopping experience but also helps reduce return rates and increase customer satisfaction.
Product Visualization: A Game-Changer for Retail
Product visualization is another area where AR is having a profound impact. In the past, customers had to rely on traditional methods like photos, descriptions, and physical visits to stores to get an idea of what a product would look like. With AR, businesses can offer customers a far more interactive and accurate way to experience products before making a purchase.
For instance, customers can use AR to view 3D digital models of products on their smartphones or tablets, allowing them to see the product from different angles and even interact with it in real-time. This is particularly useful in industries like fashion, furniture, and home décor, where the fit, style, and color of a product can be crucial in the decision-making process. L’Oreal uses AR in their ModiFace app, which allows users to virtually try on makeup, while Nike has introduced an AR-based virtual fitting room for shoes, where customers can virtually "try on" shoes from the comfort of their own home.
Beyond consumer-facing applications, AR is also beneficial in the product development process. Businesses can use AR to create 3D prototypes of products before they are manufactured. This allows companies to test ideas, iterate on designs, and make improvements before committing to costly production. Automotive companies like BMW and Ford use AR in the design and prototyping of their vehicles, reducing the need for physical prototypes and speeding up the development process.
Augmented Reality Glasses: A New Frontier in Interaction
One of the most important hardware innovations in AR is the development of AR glasses. These specialized glasses are designed to display augmented reality content directly in the user’s field of vision. Unlike smartphones or tablets, which require users to look at a screen, AR glasses allow users to see digital content seamlessly integrated into their environment. Companies like Microsoft and Google have developed AR glasses like HoloLens and Google Glass to provide hands-free, immersive experiences for professionals in fields like healthcare, manufacturing, and logistics.
For example, HoloLens has been used in industries such as healthcare and aerospace. Osso VR, a medical technology company, uses HoloLens to train surgeons through immersive AR simulations, helping them practice complex procedures before performing them on actual patients. In manufacturing, DHL employs AR glasses to help warehouse employees with order picking, reducing errors and improving efficiency by overlaying real-time inventory information.
AR glasses are used to display information, guide workers through tasks, and improve safety by overlaying real-time data on equipment and surroundings. These devices are also poised to revolutionize consumer experiences, offering new ways to interact with the world, from shopping to gaming.
Employee Training: Enhancing Learning and Efficiency
AR is not only transforming customer experiences; it’s also having a major impact on how businesses train their employees. Traditional training methods often involve expensive materials, time-consuming processes, and limited opportunities for hands-on learning. AR, however, can provide immersive, real-time training experiences that improve retention and efficiency.
In industries like manufacturing, healthcare, and aviation, AR is being used to simulate real-world environments and scenarios, allowing employees to practice tasks in a safe, controlled setting. For instance, General Electric (GE) uses AR to train workers on how to repair and maintain industrial machinery. With AR glasses or mobile apps, trainees can see step-by-step instructions overlaid on the physical equipment, making the learning process more intuitive and effective.
AR is also particularly useful for remote training. With the rise of remote work, businesses are increasingly turning to AR to train employees who are working from different locations. For example, a technician in one location can receive real-time guidance and support from an expert in another location, enhancing collaboration and reducing the need for on-site supervision. Siemens uses AR to assist with remote troubleshooting and guidance, helping field technicians solve problems without the need for in-person consultations.
Augmented Reality Software: Powering Innovation
Augmented Reality is powered by specialized software that enables the integration of virtual content with real-world environments. Some of the most popular AR software platforms include Vuforia, ARKit (by Apple), and ARCore (by Google). These platforms provide the tools necessary to create AR experiences, from tracking and mapping environments to rendering virtual objects. Businesses can use AR software to develop custom applications tailored to their specific needs, such as product visualization, training, and marketing.
In addition to these platforms, there are various AR development tools that allow businesses to create AR content without needing advanced programming skills. These tools make it easier for companies to implement AR in their operations and take advantage of the benefits it offers.
Safety: Preventing Accidents and Ensuring Compliance
In addition to training, AR is also playing a crucial role in improving workplace safety. In industries like construction, manufacturing, and healthcare, safety is a top priority. AR technology can help reduce accidents by providing real-time safety warnings and hazard alerts. Workers can wear AR glasses that display critical information about potential hazards in their environment, such as proximity to dangerous machinery or unsafe working conditions.
Furthermore, AR can help visualize safety procedures and protocols. In high-risk environments, AR can overlay safety guidelines, emergency exits, and equipment locations onto the worker's view, ensuring that they are always aware of their surroundings and prepared for any emergency. This not only helps prevent accidents but also ensures that workers comply with safety regulations and protocols. BASF, a global leader in chemicals, uses AR to enhance employee safety in manufacturing plants, improving both compliance and hazard awareness.
What are the Three Types of Augmented Reality?
There are three primary types of Augmented Reality:
Marker-based AR: This type of AR uses physical markers, such as QR codes or images, to trigger the overlay of digital content. When the AR system detects a marker, it places virtual elements on top of it, creating an interactive experience. L’Oreal’s AR app for makeup try-ons is a good example of marker-based AR.
Markerless AR: Markerless AR doesn’t require any physical markers to function. Instead, it uses GPS, accelerometers, and other sensors to map the user’s environment. This type of AR is commonly used in applications like location-based services or gaming, such as Pokémon Go, where digital elements are placed within the user’s real-world environment without the need for markers.
Projection-based AR: In projection-based AR, light is projected onto surfaces in the real world to create interactive, visible images. This type of AR can be seen in some futuristic retail setups or interactive exhibits, where virtual images are projected onto walls or tables for interaction.
Augmented Reality vs. Virtual Reality: Understanding the Difference
Although both Augmented Reality (AR) and Virtual Reality (VR) are immersive technologies, they are quite different. AR enhances the real world by overlaying digital content on top of physical objects, while VR creates entirely simulated environments that replace the real world. AR allows users to interact with both digital and physical elements simultaneously, whereas VR immerses users in a completely virtual world.
AR is often seen as more practical and accessible, as it doesn’t require the complete suspension of reality. In contrast, VR requires specialized headsets and is typically used for experiences where full immersion is desired, such as gaming or training simulations.
As we can see, the potential applications of Augmented Reality in business are vast and varied. From marketing and product visualization to employee training and inventory management, AR is transforming how businesses operate and engage with their customers, employees, and stakeholders. While AR technology is still evolving, it’s clear that it’s here to stay, and businesses that embrace AR will have a competitive edge in the future.
By enhancing customer experiences, improving operational efficiency, and driving innovation, AR is helping businesses stay ahead of the curve. As this technology continues to mature, its impact will only grow, offering new opportunities for businesses to innovate and differentiate themselves in the marketplace. Whether it’s creating immersive marketing campaigns or training employees in remote locations, Augmented Reality is poised to shape the future of business in exciting and transformative ways.