The Rise of the Virtual Human Economy and its Implications

The concept of virtual humans is transforming how we interact with technology and the roles we play in both personal and professional domains. At the forefront of this transformation is Natalie Monbiot, a futurist and founder of the Virtual Human Economy, whose insights into the integration of AI and virtual human technology are helping shape an emerging ecosystem with profound implications for productivity, creativity, and human connection.

This article is a summary of a recent episode of ODSC’s Ai X Podcast with Natalie. You can listen to the full episode on Spotify, Apple, and SoundCloud.

What Are Virtual Humans?

A virtual human can be a visual replica, a voice imitation, or even a digital representation of a person’s body of work and thought processes. These AI-powered entities are designed to perform tasks or represent individuals in various settings, provided they are created and deployed with proper permissions. Natalie describes them as extensions of ourselves, offering both autonomy and precision when integrated with generative AI technologies.

These virtual counterparts aren’t merely about creating digital versions of ourselves for entertainment or fantasy. While early examples like avatars in platforms such as Second Life focused on creativity and escapism, modern virtual humans are being crafted with professional and productivity-driven purposes.

The Potential and Evolution

Virtual humans are evolving rapidly, with advancements in lifelike visual representation, real-time interactivity, and agentic capabilities. These AI entities can mirror human expressiveness and emotionality, and some are being designed to act autonomously, assisting with everything from customer service to video production.

For example, Natalie’s work with companies like Hour One, an AI avatar startup, demonstrates how even a small snippet of video can be used to generate endless amounts of new content. The implications are staggering — such technology enables brands, educators, and individuals to create immersive and scalable content without requiring a physical presence.

Why We Build

As Natalie emphasizes, the question isn’t just about how we build virtual humans but why. These technologies must aim to solve problems, enhance productivity, and foster deeper connections. Whether at home or in the workplace, virtual humans offer opportunities to offload repetitive tasks, enabling people to focus on more meaningful and strategic endeavors.

In the workplace, they can act as research assistants, communication proxies, or content creators. At home, they might serve as personal chefs, household organizers, or even facilitators of family bonding through shared activities. The goal is not to replace human interaction but to augment it.

Principles of Responsible AI

Despite the potential, Natalie acknowledges the anxieties surrounding AI technologies. To ensure their development aligns with societal values, she advocates for a responsible AI framework built around three core principles:

1. Consent and Control: Individuals must have explicit control over whether their likeness or data is used to create virtual twins. This includes consent agreements and terms of service that clearly define how these virtual entities may operate.
2. Transparency: It’s essential to disclose when someone is interacting with a virtual human, ensuring trust and minimizing the potential for misuse.
3. Accountability: Developers must align with legal and ethical standards, including emerging regulations such as California’s laws around AI likenesses.

The Virtual Human Economy

The idea of a Virtual Human Economy encompasses more than just the creation of virtual humans. It includes the infrastructure and systems needed to manage, monetize, and safeguard these digital entities.

For instance, platforms like 11 Labs are paving the way with marketplaces where individuals can license their AI-generated voices. Such systems empower creators to monetize their talents, setting their own prices and terms. Similarly, companies are developing solutions to track the use of virtual assets, ensuring creators are compensated fairly and that their intellectual property is protected.

This economy represents a significant opportunity for businesses and individuals alike, offering a new avenue for innovation and passive income. Natalie predicts that, much like YouTube revolutionized content creation, virtual humans will catalyze a new wave of entrepreneurship and creative expression.

The Role of Humans

In a world where AI is increasingly capable of performing cognitively complex tasks, the question arises: What role will humans play? Natalie believes that while AI can mimic and even surpass human cognitive abilities in certain areas, only humans can create meaning, exercise judgment, and make ethical decisions.

This shift opens up a unique opportunity for humanity to focus on what truly matters — whether it’s forming deeper personal connections, engaging in high-level strategy, or dedicating time to creative pursuits. As Natalie points out, AI can “buy us time,” allowing us to reclaim our attention and presence for the things that make us uniquely human.

Where Do We Go From Here?

The virtual human economy is still in its infancy, but its trajectory suggests a future filled with both promise and responsibility. By thoughtfully integrating these technologies into our lives, we can unlock unprecedented opportunities for growth, innovation, and connection.

For those intrigued by this field, Natalie advises exploring emerging startups, marketplaces, and platforms that are shaping this new ecosystem. Whether as a creator, technologist, or entrepreneur, there’s a place for everyone in the virtual human economy.

As Natalie Monbiot continues to advise corporations, startups, and venture capital funds, her work serves as a beacon for how we might responsibly harness the power of virtual humans. To stay updated on her latest insights, you can follow her newsletter, The Augmented Human, or connect with her on LinkedIn.

The future of virtual humans is unfolding before us, and with it comes an exciting opportunity to redefine how we work, create, and connect.