Microsoft’s Game-Changing AI Tools: Collaboration with Inworld AI

Microsoft’s groundbreaking collaboration with Inworld AI brings game-changing AI tools to the forefront, redefining the future of innovation.

The Confluence of AI in Gaming: A Microsoft-Inworld AI Partnership

Haiyan Zhang, GM of Xbox Gaming AI, expressed in a blog post that Xbox firmly believes in empowering creators with enhanced tools to create exceptionally remarkable games. This collaboration will amalgamate Inworld’s proficiency in utilizing generative AI models for character development, Microsoft’s advanced cloud-based AI solutions such as Azure OpenAI Service, Microsoft Research’s valuable technical insights into the future of gaming, and Team Xbox’s expertise in transforming accessible and responsible creator tools for developers of all backgrounds.

The AI design copilot mentioned earlier is a set of tools that assists game designers in transforming prompts into scripts and dialogue trees. On the other hand, the character runtime allows for the creation of dynamically generated plot beats and quests. The integration of AI in games has been evident through procedural generation, with a recent example being the inclusion of over 1000 planets in Starfield. Additionally, it is worth noting that enemy AI has been present in games for a considerable amount of time.

The future of gaming shows great potential as the partnership is in its initial phases. Inworld AI aims to prioritize the creation of an AI design copilot and an AI character runtime engine under this long-term agreement. These resources will empower developers to construct AI-driven characters, construct captivating narratives, and expand the limits of gameplay.

Developers will have the choice to employ these AI development tools, as their integration continues to be a divisive choice in the gaming sector. Nevertheless, renowned game developers like Ubisoft and Embark Studios have already adopted AI to different extents and game developers will need to adapt to these new tools.

Utilization of Microsoft’s AI tool

Game developers have the option to utilize Microsoft’s generative AI tool, and it will be their decision on the extent to which they incorporate it into their upcoming titles. Embark Studios, the creators of Finals, faced criticism for their use of AI-generated voices but defended their decision by stating that their ultimate goal is not to eliminate the need for human actors in games.

The use of generative AI in creative fields such as game design and voice acting has sparked controversy, leading to the SAG-AFTRA actors union approving strike authorization for video game performers. According to Ray Rodriguez, SAG-AFTRA’s chief contracts officer, video game workers are facing similar issues as those in film and television due to exploitative uses of AI and low wages. In contrast, Microsoft is positioning its tools as a supportive aid for developers to realize their visions and push the boundaries of gaming.

Zhang, a representative from Microsoft, states that they aim to collaborate and innovate with game creators to develop tools that meet their needs and inspire new possibilities for future games, much like their Copilot system for Microsoft 365 and Windows.


Microsoft and Inworld AI have joined forces to forge AI tools for game developers, ushering in a future of game development that holds immense promise. With the infusion of AI into game design and the streamlining of development processes, the realm of gaming is poised to become even more captivating than ever before.

To ensure you stay informed about developments in the gaming industry, be sure to check out our other insightful articles on AI Showdown:

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