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Institutional Evolution of Virtual Space under the Development of Artificial Intelligence and the Metaverse

Author

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  • Nataliya Dalevska

    (Donetsk National Technical University, Drohobych, Ukraine)

  • Valentyna Khobta

    (Donetsk National Technical University, Drohobych, Ukraine)

Abstract

The rapid development of digital technologies, artificial intelligence, and immersive virtual space has significantly transformed socio-economic interactions in the digital economy. Virtual space increasingly functions not only as technological infrastructure but also as an emerging institutional environment in which economic, social, and informational interactions are coordinated through digital platforms and algorithmic systems. Although previous studies have examined digital transformation, artificial intelligence, and virtual space, the institutional mechanisms underlying the evolution of virtual space remain insufficiently explored, particularly regarding how technological innovations contribute to the formation of digital institutions and governance mechanisms within virtual ecosystems. The aim of this study is to analyse the institutional evolution of virtual space in the context of the development of artificial intelligence and metaverse technologies. The research is based on a bibliometric analysis of scientific publications indexed in the Scopus database. Bibliometric mapping and co-occurrence analysis using VOSviewer were applied to identify key thematic clusters and research trends related to institutional aspects of virtual space, while institutional and systemic analysis was used to interpret relationships between technological innovation and institutional evolution. The results reveal the emergence of an interdisciplinary research field linking digital technologies, virtual space, and institutional economics. Bibliometric mapping highlights central research themes related to virtual reality, artificial intelligence, digital environments, and social institutions. Based on the analysis, a conceptual algorithm of institutional evolution in virtual space is proposed, illustrating the transition from technological drivers and digital platforms to algorithmic governance and the emergence of digital institutions. The findings indicate that artificial intelligence and metaverse technologies contribute to the formation of platform, algorithmic, and network institutions regulating interactions within digital ecosystems. The study is limited by the use of bibliometric data from a single database and by the conceptual nature of the proposed model, highlighting the need for further empirical research on digital institutions and virtual economic space.

Suggested Citation

  • Nataliya Dalevska & Valentyna Khobta, 2025. "Institutional Evolution of Virtual Space under the Development of Artificial Intelligence and the Metaverse," Virtual Economics, The London Academy of Science and Business, vol. 8(3), pages 109-131, November.
    • Handle: RePEc:aid:journl:v:8:y:2025:i:3:p:109-131
    DOI: 10.34021/ve.2025.08.03(5)
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    References listed on IDEAS

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    1. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    2. Vyacheslav Dementyev & Nataliya Dalevska & Aleksy Kwilinski, 2021. "Innovation and Information Aspects of the Structural Organization of the World Political and Economic Space," Virtual Economics, The London Academy of Science and Business, vol. 4(1), pages 54-76, January.
    3. Aleksy Kwilinski & Nataliya Dalevska & Vyacheslav V. Dementyev, 2022. "Metatheoretical Issues of the Evolution of the International Political Economy," JRFM, MDPI, vol. 15(3), pages 1-14, March.
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