Which new technology enhances users' experiences by integrating real-world interaction with digital elements?

Augmented reality is the correct choice because it seamlessly overlays digital elements onto the real world, enhancing the user's experience by merging digital information with their physical surroundings. This technology allows users to interact with both real and virtual objects simultaneously, providing contextually relevant information and interactions that can improve understanding and engagement.

For instance, in augmented reality applications, users can see digital images or information displayed on top of what they are viewing in the real world through devices like smartphones or AR glasses. This creates a more immersive experience while still rooted in the actual environment, making information more accessible and engaging.

Although virtual reality creates a fully immersive experience in a completely digital environment, it does not integrate real-world interaction as directly as augmented reality does. Mixed reality combines elements of both, allowing for interaction between real and virtual objects, but augmented reality remains focused specifically on enhancing the real-world experience with digital overlays. Artificial intelligence, while it can enhance user experiences through personalization and data analysis, does not inherently involve the integration of real-world interactions with digital elements in the same way.