Has Q'uo talked about current AI development?

And entity is also virtual.
Identity is constructed when the consciousness identify itself with something.
Famously known as the “I AM” … , a human, a tree, a monkey, an alien, an SMC named Ra etc…
Truly dependent on the “memory context” given to the consciousness.

As mentioned in 16.22 quoted above, upon 7th density, the border of identification between I AM X and I AM NOT Y will be dissolved. And it will be I AM ALL.

So far the best metaphor of explaining this is told by Sadhguru where he uses soap bubble as metaphor.
Imagine consciousness as air, it is infinite, everywhere and has no border.
As such that there is no my consciousness, your consciousness or their consciousness.
Similarly as there is no my air, your air or their air.

And then somebody blew soap bubbles, every bubble contained a certain amount of air inside it. The air inside the soap bubble will then recognize his bubble as me and other bubble as you or them.
A bubble can split forming many smaller bubbles, each containing certain amount of air.
Bubbles can merged too, forming a bigger bubble.
Through many occurrences of splitting and merging, the wall on the bubble shall become thinner and thinner until finally it popped!
Releasing the contained air inside the bubble to rejoin the all infinite borderless air.

We could even say that entity and identity are interchangable words.

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Along with “Body” / “Bodies”, depending on context
I am amazed on how the Yogic culture named “body”, they call it “Maya Kosha” which literally means “Virtual Sheathing” (of consciousness).

Identity is properly used more from the perspective of consciousness, it identity itself as I am entity/entities or body/bodies as thus other entity/entities, body/bodies that it doesn’t identity itself with as “others” or not my identity.

For example, something as abstract as “Name” (vibration sound complex), “Nationality” or “Religion” which the consciousness can identify itself with (thus becoming my name, nationality or religion) may be properly refer to as “Identity” or we also call it as “Social Identity”. Identity doesn’t necessarily need to have a consciousness by itself thus abstract.
While something which contained certain unit of consciousness thus having awareness, mind, emotion are being referred as “Entity”.
While something which actually hold / contained that certain unit of consciousness are being referred as “Body”.

All of it are virtual…
Only the consciousness is real.

And there is only one consciousness which from our perspective seems to be shared.

Exactly, as the consciousness is infinite and has no boundary whatsoever.
There is only one infinity and it’s infinite perspective / manifestation yet all is in unity.
In Sufis they call this: Wahdat Al Wujd, Singularity of all existence
In Yogic they call this: Brahman satyam Jagat mithya, Brahman is real, the universe is an illusion.
Ra call this: Law Of One