The “utility” of an NFT refers to the value you get out of buying, and holding a particular project.
In many cases NFTs are just digital collectables, and artists offer zero utility aside from !vibes. While other NFTs could give you a wide variety of perks:
The “NFT community.”
Access to private chats, tools, or information you’re seeking.
Act as tickets to, or for, events.
Gain you access to whitelists or free NFTs.
Allow you to vote in DAO governance.