Future of AI: The shift from artificial intelligence (AI) to extended intelligence (XI)

Feb 19, 2025
ai

Who doesn’t remember the movie Iron Man? For Tony Stark, JARVIS wasn’t just an AI assistant — it was a trusted partner, a voice of reason, and sometimes, even a friend. More than executing commands, JARVIS could anticipate Tony’s needs, adapt to his sarcasm, and respond with wit and intelligence. It wasn’t about replacing human decision-making, but enhancing it — augmenting Stark’s genius with precision, speed, and even a touch of empathy.

While back then JARVIS existed in the world of fiction, the idea of AI as a collaborator rather than a competitor is becoming a reality. We’ve long imagined AI as a cold, calculating force, designed to automate tasks and replace human effort. But the future of AI isn’t about replacement, it’s about extension.

Machines are evolving to understand emotions, respond intuitively, and enhance human intelligence, much like JARVIS did for Stark. As we look ahead, a more promising and transformative vision is emerging where we see AI as “extended intelligence (XI)” where machines do not replace human cognition but rather enhance and augment it. The core of this will be empathetic machines that can understand, relate to, and collaborate with humans on a deeply intuitive level.

The rise of empathetic machines

For now, we know that empathy is the ultimate differentiator between humans and machines. But what if AI could perceive emotions, respond with sensitivity, and tailor its interactions accordingly? Advances in affective computing, natural language processing, and multimodal AI are paving the way for machines that understand tone, sentiment, and even non-verbal cues such as facial expressions and body language.

“Instead of thinking about machine intelligence in terms of human’s vs machines, we should consider the system that integrates humans and machines – not artificial intelligence but extended intelligence. Instead of trying to control or design or even understand systems, it is more important to design systems that participate as responsible, aware and robust elements of even more complex systems”

Source: MIT media lab - Wired – Forget about artificial intelligence, extended intelligence is the future

Key developments in empathetic AI

  • Emotion recognition – AI now deciphers facial expressions, voice tones, and even biometric data to gauge emotions.
  • Context-aware responses – AI systems are improving at adapting responses based on a person’s mood and preferences.
  • Conversational AI – Chatbots and virtual assistants are becoming more human-like, grasping sentiment and responding with nuance.
  • Personalization – AI is moving beyond just recommendations; it’s shaping experiences that align with users' emotional states and desires.


Examples of extended intelligence in action

Empathetic AI is already reshaping multiple industries. Here are some cross-industry examples:

  • Healthcare & mental wellness
    • Virtual therapists like Woebot and Wysa provide mental health support with AI-driven, emotionally aware conversations.
    • Smart wearables like Apple Watch and Fitbit Sense track stress levels and offer AI-driven insights to help users manage mental health.
  • Customer experience & support
    • AI-powered service agents like Soul Machines and IBM Watson detect frustration in customer interactions and adjust accordingly.
    • Retail brands like Sephora and H&M use AI chatbots to create personalized shopping experiences based on customer emotions.
  • Education & learning
    • AI tutors like Carnegie Learning and Squirrel AI customize teaching styles based on student engagement and mood.
    • Virtual classrooms are integrating AI to create interactive, emotionally attuned learning environments.
  • Workplace & collaboration
    • AI coaching tools like Receptiviti analyze workplace communication, helping leaders build emotional intelligence.
    • AI-powered platforms like Microsoft Viva assess employee sentiment to shape better workplace cultures.

While empathetic AI brings exciting possibilities, it also raises ethical consideration questions:

  • Privacy & data security – Emotion AI requires personal data. How do we protect it?
  • Bias & fairness – AI must be trained on diverse datasets to avoid reinforcing emotional biases.
  • Authenticity & trust – Can AI truly "feel" empathy, or is it just simulating it? Trust will define how people engage with empathetic AI.


Looking ahead: emotional AI APIs

Despite these challenges, the potential of emotional AI remains vast. As technology matures, it could lead to advancements in personalizing customer experiences, enhancing mental health treatments, and creating more empathetic human-computer interactions. However, the path forward must be navigated with an emphasis on ethical practices, transparency, and respect for user privacy.

There is still a lot that we need to do collectively as a society, with the road ahead requiring thoughtful stewardship. To guide both industry leaders and individuals as we define the next era of AI, we must ask ourselves:

  • How can we ensure AI remains a force for good?
  • How do we balance convenience with ethical responsibility?

The journey of emotional AI is as much about technological advancement as it is about ethical responsibility. As industry responds to these challenges, the future of emotional AI continues to be a compelling narrative of innovation fused with human curiosity. Will we create machines that merely mimic empathy, or will we leverage AI to deepen human connections? The answer lies not just in the algorithms we develop, but in the way we, as a society, choose to engage with them. The future of emotional AI is not just about innovation, it is about the choices we make today that will shape tomorrow.

References
The Business Standard: Time to embrace ‘extended intelligence’.
Reiners D, Davahli MR, Karwowski W and Cruz-Neira C (2021) The Combination of Artificial Intelligence and Extended Reality: A Systematic Review. Front. Virtual Real. 2:721933. doi: 10.3389/frvir.2021.721933


AUTHORED BY
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Smita Challu Tulsani

Global MarTech Portfolio & AI Strategy Head World Vision Canada




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