The first minds to be controlled by generative AI will live inside video games

Microsoft has plans to use generative AI in gaming, with its recent Xbox partnership with Inworld AI serving as an example. Inworld AI focuses on non-playable characters (NPCs) in video games, aiming to move beyond limited scripts and create NPCs that can adapt to player behavior and contribute to immersive game worlds. This advancement in generative AI presents a paradigm shift for player engagement and offers opportunities for gaming companies to enhance immersion, replayability, retention, and revenue. The gaming industry sees AI as a key tool for improving game development, with NPCs being a test case. AI is expected to play a significant role in game development and enable immersive worlds, sophisticated narratives, and user-generated content creation. However, challenges remain in balancing predictability and unpredictability in AI-generated game elements.