<![CDATA[The rapid evolution of the metaverse has transformed virtual environments into dynamic and immersive spaces, with Artificial Intelligence (AI) playing a pivotal role in this transformation. However, despite AI’s contributions to design innovation, significant concerns remain regarding ethical, social, and technical challenges. This study aims to comprehensively analyze the role of AI in enhancing design innovations within the metaverse, while addressing issues of algorithmic bias, data privacy, and social inclusivity. Employing a mixed-methods approach, the research combines quantitative analysis of over 500,000 user interaction datasets from leading metaverse platforms—Decentraland, Roblox, and Meta Horizon—with qualitative insights from semi-structured interviews involving AI developers and UX/UI designers. Statistical analyses, including regression and clustering techniques, alongside thematic analysis, reveal that AI significantly enhances user engagement by improving avatar personalization and adaptive virtual environments. However, findings also highlight persistent risks such as biased algorithmic decisions, lack of transparency, and privacy vulnerabilities, which may hinder equitable participation in virtual spaces. The study further proposes and implements an AI model grounded in Human-Computer Interaction principles and fairness-aware machine learning to mitigate these issues. Results demonstrate improved user satisfaction, inclusivity, and social interaction quality. This research offers critical implications for developers, policymakers, and stakeholders, emphasizing the need for ethical AI governance and inclusive design frameworks in metaverse ecosystems. By bridging technological advancements with social responsibility, the study contributes to the development of a sustainable and equitable metaverse future.]]>
