Generative AI is perhaps the most important technological revolution that we are witnessing today. Some of us believe it is going to supplement and revolutionize human creativity and digital experiences. At the same time, there are speculations around the threat of misrepresentation, misinformation, and evolution of a digital world that is far away from reality and creates delusion for the end-user. In this chapter, we provide an overview of the immersive experiences in the space of virtual reality, augmented reality, and mixed reality and their meaning for end users. We explore various fundamental techniques such as generative adversarial networks (GANs), variational autoencoders (VAEs), and reinforcement learning (RL). The most important advancement over the earlier generation of digital technologies, that is, adaptability of content as per the demand, also called dynamic personalization in the adaptive immersive environments, has been discussed. Lastly, we cover the challenges and ethical considerations, for example, the threat to data privacy, algorithmic bias, and content moderation, as well as new responsibilities of the players in the field and collaborative opportunities in different fields, for example, collaboration between content creators, researchers, and immersive AI environment developers that may transform digital human experiences to new heights.