This chapter explores the evolving landscape of customer engagement and digital business, driven by the transformative capabilities of Generative AI and the Metaverse. It aims to investigate how these cutting-edge technologies are challenging and reshaping traditional business models, offering unprecedented levels of personalization and scalability in customer interactions. By examining the integration of Generative AI and the Metaverse, the chapter highlights their roles in fostering deeper emotional connections with customers, enhancing the overall customer experience, and redefining the way businesses operate in the digital realm. The chapter also outlines emerging business models and innovative strategies that leverage these technologies to create immersive, personalized experiences, which in turn promote customer loyalty and brand differentiation. Additionally, it identifies key challenges and provides insights into future research directions, underscoring the vast potential for businesses to harness these technologies for continuous innovation and long-term success.