BlackRock, the world’s largest asset manager, said augmented reality technology being pursued by companies such as Meta, formerly Facebook, is something “every company will have to deal with”.

In a note to clients published by the Financial Times, BlackRock Fundamental Equities chief investment officer Nigel Bolton backed so-called “Web 3” platforms, in which companies from sectors ranging from cryptocurrency and e-commerce to consumer goods are investing to develop their own meta-universe solutions.

“Brands that have made other major technological changes have done so by understanding consumers and providing them with relevant emotional experiences. People flock to brands that understand their world, whether it’s the conventional analog world or the emerging digital worlds,” Bolton explained.

Leading technology companies such as Meta, Google, Microsoft and Apple have invested in developing technologies related to the meta universe.

The financial services industry has so far intervened cautiously in Web 3 offerings by launching meta-universe-themed ETFs.

Microsoft’s $69 billion acquisition of game developer Activision, the largest for the company, is expected to bolster its plans to take a significant stake in the meta-universe.

Goldman Sachs analyst Eric Sheridan recently predicted that the meta-universe could be an $8 trillion business opportunity, according to the Financial Times.

Bolton compared the meta-universe to the Internet of the early 1990s and the smartphone revolution that occurred in the early 2000s.

“Virtual reality headsets and augmented reality glasses and powerful 5G mobile networks will take the world to the next level. Technology and Internet companies, as well as consumer brands and marketing companies, are focused on a key goal: consumer engagement,” the BlackRock executive added.

According to Bolton, companies that are already investing in the meta-universe will be the winners in the long run.