In a livestreamed demonstration, he created a basic virtual world - including an island, trees and a beach - using the AI feature Builder Bot.
Mr Zuckerberg also announced a plan to build a universal speech translator.
"The ability to communicate with anyone in any language is a superpower that was dreamt of forever," he said.
Builder Bot was part of Meta's CAIRaoke project to improve AI assistants and allow "AI to see the world from our experience" as people entered virtual reality via headsets or glasses, Mr Zuckerberg said.
And he promised the AI systems driving Meta's virtual worlds would preserve privacy and be transparent and responsible.
Facebook has been investing in AI for the past 10 years and has one of the world's leading experts, Yann LeCun as its head of AI.
In January it announced that it had built a new AI supercomputer that it aims to be the fastest in the world when completed in mid 2022.