The recording sessions for "Living in the Material World" began in October 1972 after Harrison had spent part of the summer staying with Wright in Portugal. Although Harrison had intended to co-produce the album with Phil Spector as before, he decided to work without him, partly as a result of Spector's erratic behaviour at the start of the sessions. In his 2014 autobiography, Wright says that Spector's dismissal was "the right move"; he describes "Material World" as his favourite Harrison album and "a beautiful masterpiece showing more of him – without Phil Spector's production". Aside from Harrison, and Wright on keyboards, the musicians on "That Is All" were Nicky Hopkins (on piano), Klaus Voormann (bass) and Jim Keltner (drums).