Ages ago, for some raytracing stuff, a buddy used l-systems to generate forests, gardens, etc. Each plant was generated from a seed. A very compact reproducible, representation.
https://en.wikipedia.org/wiki/L-system
https://en.wikipedia.org/wiki/The_Algorithmic_Beauty_of_Plan...
What we know about our brains (whether it's a simulated brain or not) tells us that effectively our perception is a simulation of our own. Because for example as you look around, your eyes only get high resolution data in the center, and that can only represent a fraction of the relevant immediate environment. And none of the senses or motor activations are quite real time, there is always some type of lag. The brain takes the data samples and uses them to fine tune a generative prediction system that constructs the dynamic and holistic 3d scene and your position in it using the computational power of your own network of neurons.
To me, dreams provide a certain level of proof that we can do this type of simulation, and something similar is happening while we are awake, but with environmental data sampling and other cognitive processes feeding in.
Which will basically create realistic 3d streams of dynamic environments and people (so they can be viewed stereoscopically and from different perspectives).
The enhanced AI-based compression should make it more practical to stream in the moving 3d data with fewer delays and latency and more realism than something like a traditional game engine.
Unless no one wants to go to real places anymore because imaginary ones are nicer.
But think about virtual reality with realistic faces and eye contact.
Or a movie where you can view a scene from any perspective you want at any time. Even one of the protagonists. When you are trying to realistically transmit and recreate many entire dynamic 3d scenes, that is where AI can help a lot with scanning and compression/decompression.