The IRL Economy: Demand for live experiences rises despite digital growth

Despite predictions that the pandemic and the rise of artificial intelligence would lead to a digital-dominant world, demand for in-person experiences is increasing. This phenomenon, described as the ‘IRL Economy,’ suggests that the shift toward digital-first environments may actually strengthen the human drive for physical connection and community.

Investors at Providence Equity Partners note that while sectors like business travel and live entertainment faced significant uncertainty during the COVID-19 pandemic, people have emerged with a renewed appreciation for real-life interactions. Rather than a zero-sum tradeoff between goods and experiences, the growth of the IRL Economy is driven by a durable human need for connection that persists even as digital tools become more prevalent.