Recent Advances and Future Directions in Extended Reality (XR): Exploring AI-Powered Spatial Intelligence

Abstract: Extended Reality (XR), encompassing Augmented Reality (AR), Virtual Reality (VR) and Mixed Reality (MR), is a transformative technology bridging the physical and virtual world and it has diverse potential which will be ubiquitous in the future. This review examines XR's evolution through foundational framework - hardware ranging from monitors to sensors and software ranging from visual tasks to user interface; highlights state of the art (SOTA) XR products with the comparison and analysis of performance based on their foundational framework; discusses how commercial XR devices can support the demand of high-quality performance focusing on spatial intelligence. For future directions, attention should be given to the integration of multi-modal AI and IoT-driven digital twins to enable adaptive XR systems. With the concept of spatial intelligence, future XR should establish a new digital space with realistic experience that benefits humanity. This review underscores the pivotal role of AI in unlocking XR as the next frontier in human-computer interaction.