Microsoft is partnering with Inworld AI to develop new tools that will allow game developers to create AI-powered characters, stories, and quests for Xbox games.

This partnership is a multi-year commitment and will include the creation of an “AI design copilot” system that developers can use to create detailed scripts, dialogue trees, and quest lines.

“At Xbox, we believe that with better tools, creators can make even more extraordinary games,” explains Haiyan Zhang, general manager of gaming AI at Xbox. “This partnership will bring together: Inworld’s expertise in working with generative AI models for character development, Microsoft’s cutting-edge cloud-based AI solutions including Azure OpenAI Service, Microsoft Research’s technical insights into the future of play, and Team Xbox’s strengths in revolutionizing accessible and responsible creator tools for all developers.”

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This new technology has the potential to revolutionize the way that Xbox games are developed and played. AI characters can be more dynamic and engaging than traditional characters, and they can be used to create more immersive and personalized gaming experiences.

“AI has long been an integral part of game development, with applications ranging from enemy AI to procedural generation,” says Ilya Gelfenbeyn, CEO of Inworld AI. “The emergence of large language models and generative AI has unlocked new opportunities for storytelling and character engagement within games.”

Microsoft says the new tools will be available to developers next year, so stay tuned for more details. In the meantime, let’s dream about all the amazing AI-powered Xbox games that could be on the horizon.

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