Microsoft and AI company Inworld AI have announced a «multi-year co-development partnership», which will see the companies work to develop a range of AI tools for Xbox's studios.
These tools include an «AI design copilot» and an «AI character runtime engine».
The design copilot will be able to take prompts and turn them into «detailed scripts, dialogue trees, quests and more», the companies said. The character runtime will enable «entirely new narratives with dynamically-generated stories, quests, and dialogue».
In a statement accompanying the announcement, general manager of gaming AI at Xbox Haiyan Zhang said the partnership will combine «Inworld's expertise in working with generative AI models for character development» and Xbox's «strengths in revolutionising accessible and responsible creator tools for all developers».
In August, Inworld AI announced it had received funding from Microsoft's venture capital subsidiary M12, bringing the company's total valuation at the time to $500m.
Inworld AI was behind the technology used by modder Bloc to create Sentient Streets, an AI-powered mod for GTA 5 which allowed players to speak to NPCs and create dialogue on the fly. The mod was shortly taken down by publisher Take-Two.
AI has been a massive talking point for the industry this year. At GDC, Eurogamer's Chris Tapsell went on the ground to see how developers felt about the use of AI in development. AI has been heavily criticised by voice actors including David Hayter (Metal Gear Solid) and Jane Perry (Returnal).
Protections for voice and performance capture artists against AI is one of the issues which contributed to the expansion of the ongoing SAG-AFTRA strike to include the games industry.
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