AR lets the user experience the real world, which has been digitally augmented or enhanced in some way. VR, on the other hand, removes the user from that real-world experience, replacing it with a completely simulated one.
Because VR requires complete immersion, VR devices shut out the physical world completely. The lens on the smart glasses that deliver AR capabilities, on the other hand, are transparent. Understanding these differences is critical in determining the best use cases for each.