The convergence of Virtual Reality (VR), Artificial Intelligence (AI), and the Internet of Things (IoT) offers transformative potential across numerous sectors. However, existing studies often examine these technologies independently or in limited pairings, which overlooks the synergistic possibilities of their combined usage. This systematic review adheres to the PRISMA guidelines in order to critically analyze peer-reviewed literature from highly recognized academic databases related to the intersection of VR, AI, and IoT, and identify application domains, methodologies, tools, and key challenges. By focusing on real-life implementations and working prototypes, this review highlights state-of-the-art advancements and uncovers gaps that hinder practical adoption, such as data collection issues, interoperability barriers, and user experience challenges. The findings reveal that digital twins (DTs), AIoT systems, and immersive XR environments are promising as emerging technologies (ET), but require further development to achieve scalability and real-world impact, while in certain fields a limited amount of research is conducted until now. This review bridges theory and practice, providing a targeted foundation for future interdisciplinary research aimed at advancing practical, scalable solutions across domains such as healthcare, smart cities, industry, education, cultural heritage, and beyond. The study found that the integration of VR, AI, and IoT holds significant potential across various domains, with DTs, IoT systems, and immersive XR environments showing promising applications, but challenges such as data interoperability, user experience limitations, and scalability barriers hinder widespread adoption.

Over the past few years, augmented reality (AR) is increasingly diffused among location-based applications. A situation often encountered in AR applications is the partial or full occlusion of – physical or virtual – objects by physical obstacles. Ex