ABSTRACT. The convergence of Artificial Intelligence (AI) and Extended Reality (XR) transforms how we learn, connect, and experience ourselves and others. Immersive environments intensify presence and connection while introducing layered cognitive and affective demands that call for new perspectives on design, ethics, and human flourishing. This paper explores these demands through a synthesis of ethnographic studies in Social VR, controlled experiments using neurophysiological measures, and design explorations in neuroadaptive XR. We detail apparatus, methods, and findings across phantom touch, muting, mirror dwelling, VR drinking, trust systems, nonverbal affective interaction, embodiment, neuroadaptive meditation, dyadic biofeedback, and intentional time control. By interweaving theory and participant voices, we argue for immersive tailoring as a strategy to return agency to users while mitigating the risks of AI-driven XR systems, framing pathways toward responsible, human-centered XR futures.

ABSTRACT. Explainable Artificial Intelligence methods and their presentation tend to dive deep into the technical details of complex models inappropriate for end users. We developed a storytelling explainer to support a human operator’s understanding of a conceptual AI-based intelligent assistant’s decision-making process in managing an emergency in a future Urban Air Mobility (UAM) traffic management scenario. The design exploration focused on how storytelling can be applied to effectively convey the decision-making processes of the intelligent assistant supporting the human UAM Coordinator. A mixed methods study was conducted with eight air traffic controllers to assess their perception and understanding of the storytelling explainer. The storytelling approach was found to support users' understanding of how the intelligent assistant made decisions. The use of construal level theory to generate explanations presented some challenges and calls for further research.