Mixed reality thrives on the interplay between the physical and the virtual, not as opposing forces but as complementary mediums. Reality provides context, texture, and constraint—anchoring experiences in the tangible world. Virtuality introduces malleability, abstraction, and scale—expanding what’s possible beyond physical limits. When AI bridges these domains, it enables environments that respond to both spatial physics and digital logic, creating seamless, adaptive experiences. Embracing both mediums is essential for crafting XR that feels intuitive, immersive, and emotionally resonant. It's not about choosing one over the other, but designing with both in mind from the start.