Recent developments in computer graphics, hardware, artificial intelligence (AI), and human-computer interaction likely lead to extended reality (XR) devices and setups being more pervasive. While these devices and setups provide users with interactive, engaging, and immersive experiences with different sensing modalities, such as eye and hand trackers, many non-player characters are utilized in a pre-scripted way or by conventional AI techniques. In this paper, we argue for using large language models (LLMs) in XR by embedding them in virtual avatars or as narratives to facilitate more inclusive experiences through prompt engineering according to user profiles and fine-tuning the LLMs for particular purposes. We argue that such inclusion will facilitate diversity for XR use. In addition, we believe that with the versatile conversational capabilities of LLMs, users will engage more with XR environments, which might help XR be more used in everyday life. Lastly, we speculate that combining the information provided to LLM-powered environments by the users and the biometric data obtained through the sensors might lead to novel privacy invasions. While studying such possible privacy invasions, user privacy concerns and preferences should also be investigated. In summary, despite some challenges, embedding LLMs into XR is a promising and novel research area with several opportunities.

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