Some game studios turn to AI-fueled NPCs for more interaction

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LOS ANGELES — For decades, video games have relied on scripted, stilted interactions with non-player characters to help shepherd gamers in their journeys. But as artificial intelligence technology improves, game studios are experimenting with generative AI to help build environments, assist game writers in crafting NPC dialogue and lend video games the improvisational spontaneity once reserved for table-top role-playing games.

In the multiplayer game “Retail Mage,” players help run a magical furniture store and assist customers in hopes of earning a five-star review. As a salesperson — and wizard — they can pick up and examine items or tell the system what they’d like to do with a product, such as deconstruct chairs for parts or tear a page from a book to write a note to a shopper.

A player’s interactions with the shop and NPCs around them — from gameplay mechanics to content and dialogue creation — are fueled by AI rather than a predetermined script to create more options for chatting and using objects in the shop.

“We believe generative AI can unlock a new kind of gameplay where the world is more responsive and more able to meet players at their creativity and the things that they come up with and the stories they want to tell inside a fantasy setting that we create for them,” said Michael Yichao, cofounder of Jam & Tea Studios, which created “Retail Mage.”

The typical NPC experience often leaves something to be desired. Pre-scripted interactions with someone meant to pass along a quest typically come with a handful of chatting options that lead to the same conclusion: players get the information they need and continue on. Game developers and AI companies say that by using generative AI tech, they aim to create a richer experience that allows for more nuanced relationships with the people and worlds that designers build.

Generative AI could also provide more opportunities for players to go off-script and create their own stories if designers can craft environments that feel more alive and can react to players’ choices in real-time.

Tech companies continue to develop AI for games, even as developers debate how, and whether, they’ll use AI in their products. Nvidia created its ACE technologies to bring so-called “digital humans” to life with generative AI. Inworld AI provides developers with a platform for generative NPC behavior and dialogue. Gaming company Ubisoft said last year that it uses Ghostwriter, an in-house AI tool, to help write some NPC dialogue without replacing the video game writer.

A report released by the Game Developers Conference in January found that nearly half of developers surveyed said generative AI tools are currently being used in their workplace, with 31% saying they personally use those tools. Developers at indie studios were most likely to use generative AI, with 37% reporting use the tech.

Still, roughly four out of five developers said they worry about the ethical use of AI. Carl Kwoh, Jam & Tea’s CEO, said AI should be used responsibly alongside creators to elevate stories — not to replace them.

“That’s always been the goal: How can we use this tool to create an experience that makes players more connected to each other?” said Kwoh, who is also one of the company’s founders. “They can tell stories that they couldn’t tell before.”

Using AI to provide NPCs with endless things to say is “definitely a perk,” Yichao said, but “content without meaning is just endless noise.” That’s why Jam & Tea uses AI — through Google’s Gemma 2 and their own servers in Amazon — to give NPCs the ability to do more than respond, he said. They can look for objects as they’re shopping or respond to other NPCs to add “more life and reactivity than a typically scripted encounter.”

“I’ve watched players turn our shopping experience into a bit of a dating sim as they flirt with customers and then NPCs come up with very realistic responses,” he said. “It’s been really fun to see the game react dynamically to what players bring to the table.”

Demonstrating a conversation with a NPC in the game “Mecha BREAK,” in which players battle war machines, Ike Nnole said that Nvidia has made its AI “humans” respond faster than they previously could by using small language models. Using Nvidia’s AI, players can interact with the mechanic, Martel, by asking her to do things like customize the color of a mech machine.

“Typically, a gamer would go through menus to do all this,” Nnole, a senior product marketing manager at Nvidia said. “Now it could be a much more interactive, much quicker experience.”

Artificial Agency, a Canadian AI company, built an engine that allows developers to bring AI into any part of their game — not only NPCs, but also companions and “overseer agents” that can steer a player towards content they’re missing. The AI can also create tutorials to teach players a skill that they are missing so they can have more fun in-game, the company said.

“One way we like to put it is putting a game designer on the shoulder of everyone as they’re playing the game,” said Alex Kearney, cofounder of Artificial Agency. The company’s AI engine can be integrated at any stage of the game development cycle, she said.


In the quest for creating more immersive and interactive gaming experiences, video game studios around the world are increasingly turning to artificial intelligence (AI) and machine learning technologies. A key focus in this regard is enhancing the interaction level with non-player characters (NPCs), which are programmed by developers to populate the gaming world and interact with the player in various ways. By powering these NPCs with AI, game studios are pushing conventional boundaries, revolutionizing the gaming world as we know it.

NPCs are crucial components of video games, offering storylines, quests, and providing vital player engagement. Traditionally, they follow pre-programmed paths, speech patterns, and responses. However, that has often limited the scope of interaction, preventing genuine, multi-layered conversations. AI adoption is set to change this limited aspect, revolutionizing interaction and immersion within video games.

AI allows NPCs to possess almost human-like intelligence and decision-making capabilities, making them seem more realistic and spontaneous. No longer limited to fixed dialogue trees, these NPCs can understand and respond to the player’s actions and commands dynamically, adapting to the gameplay and environment changes in real-time. This shift can make in-game interactions more varied, organic, and realistic, thereby driving a deeper emotional engagement with players.

One of the most significant advantages of utilizing AI is the ability to learn from players’ actions and choices. For instance, machine learning can enable NPCs to remember and respond differently to players based on their past actions, a feature previously difficult to achieve due to the complex coding involved. With deep learning algorithms, NPCs can recall past interactions and evolve over time, making the gaming experience more personal and immersive.

This application is already becoming apparent in recent games. For example, in Shadow of War, the NPCs bear grudges against players depending on their earlier interactions, and F.E.A.R employs advanced AI algorithms to make opponents plot and strategize against the player. These clever adaptations not only enhance the gameplay’s challenge but also add depth to the narrative element of these games.

Game studios are also exploring generative AI models for NPCs. These AI models, capable of generating dialogue and interaction sequences based on specific inputs, can potentially create endless interactive possibilities. Such NPCs can respond to players in novel and unexpected ways, turning every playthrough into a unique experience and keeping players engaged for longer periods.

Despite the incredible potential, integrating AI into video game development does pose certain challenges. Too much unpredictability can lead to chaotic gameplay, and balancing this aspect is key. Moreover, developing AI-powered NPCs necessitates a deep understanding of AI and machine learning concepts, necessitating investment in skill and talent development in these areas.

Regardless of these hurdles, the use of AI for more dynamic NPC interaction is undeniably a pinnacle achievement in the world of video game development. By creating more lifelike, reactive, and engaging gaming realities, AI is transforming the video game industry, offering players experiences that are far more immersive and personal than ever before.

In conclusion, as video game studios continue integrating AI technologies into their NPCs, we can expect a new era of gaming that is more engaging, intuitive, and immersive. AI-powered NPCs promise an exciting future in gaming where each interaction, decision, and consequence are crafted uniquely for each player, shattering the one-size-fits-all model in gaming narratives.


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Some game studios turn to AI-fueled NPCs for more interaction

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