Microsoft has teamed up with startup Inworld AI to co-create a generative artificial intelligence toolkit that developers will be able to use to create games. Specifically, an “AI copilot” is to be developed, which will be able to create complex scenarios, dialogue trees, tasks and other game elements. Microsoft and Inworld AI are also going to work on a new AI engine that will allow players to generate completely new and original stories, quests and dialogues while playing.

Inworld’s website states that its technology can “create characters with distinct personalities and an awareness of the context of the game world“. The company is said to be able to provide developers with a “fully integrated NPC (non-player character) artificial intelligence engine that goes beyond large language models (LLM)”.

Developers are understandably worried about these upcoming tools. Concerns are growing among creators that companies will use their works to train generative artificial intelligence without their consent. A group of authors, including John Grisham and George RR Martin, even sued OpenAI, accusing it of infringing their copyright. And then, of course, there’s the ever-present fear that developers might decide to lay off writers and designers to cut costs. However, Xbox believes these tools can “make it easier for developers to realize their visions” and can help push the boundaries of current games.