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Generative AI is poised to transform the way we interact with video games, blurring the lines between player and character, as well as narrative and reality. The future of interactive storytelling is here!

 

The global video game industry, a billion-dollar business and has been for many years, is poised for a tectonic transformation ushered in by the adoption of Large Language Models. Per Statista, in 2022, the revenue from the worldwide gaming market was estimated at almost US$347 billion, out of which the mobile gaming market garnered aroundUS$248 billion.

Gaming experience is all set to change as Generative Artificial Intelligence (GenAI) brings big disruptions in the gaming industry. Game development had traditionally been costly, effort-intensive, and time-consuming. But soon AI will tackle all that. Of course, human involvement will still be crucial, but experts will focus more on overseeing the quality of machine output and no longer on hands-on development tasks. The transformation will affect the entire economics of the gaming industry as well as bring new dynamics in audio-visual fidelity, and introduce more dynamic scenarios and characters whose on-screen activities will not be pre-scripted and pre-defined, but responsive and interactive. The entire gaming experience is set to be transformed into something far more immersive, life-life and surreal all neatly packaged into a seamless involvement for the gamers.

For many gamers, open-world games offer a chance to escape into sprawling, simulated universes. But after a while, the repetitive interactions with NPCs (non-player characters) can shatter the illusion. Generative AI, however, is poised to revolutionise the way we interact with these virtual denizens, promising open-ended conversations, unique experiences, and entirely new game genres.

Breaking free from scripted conversations

Traditionally, video game characters rely on heavily scripted dialogue trees. Players navigate these branches, receiving predictable responses. Generative AI, powered by large language models (LLMs) like ChatGPT, breaks free from this rigidity. These AI-powered NPCs can hold unscripted conversations, responding to a player’s choices and questions in a dynamic way. Imagine a conversation with a bartender in a virtual saloon that isn’t limited to pre-programmed greetings or taunts. With generative AI, the bartender might offer a witty remark or share a story based on your character’s appearance or previous interactions.

Creating virtual beings with their own worlds

Generative AI goes beyond unscripted dialogue. Companies like Inworld AI are developing AI that allows NPCs to exist and evolve even when the player isn’t around. These virtual beings can have their own internal states, motivations, and backstories. Imagine a shopkeeper in a fantasy game who remembers your previous purchases and tailors their interactions accordingly. Or picture a world where NPCs form relationships with each other, creating a complex social ecosystem that unfolds even during your absence.

The rise of entirely new game genres

The potential of generative AI extends far beyond enhancing existing game mechanics. Some experts believe this technology could usher in entirely new genres. Imagine a game where the narrative unfolds organically based on your interactions with AI characters. Your choices and conversations could shape the world around you, creating a unique and unpredictable experience. Others envision games where players collaborate with AI partners to rewrite the game’s rules or objectives in real-time.

Beyond gaming: The potential of generative AI

The implications of generative AI extend beyond the realm of video games. Joon Sung Park, a researcher at Stanford University, sees this technology being used to simulate real-world scenarios. Imagine AI agents that act as proxies for real people, allowing policymakers to test the potential impact of new laws or economic policies.

The ethical considerations of a living game world

While generative AI offers exciting possibilities, ethical considerations remain. As NPCs become more sophisticated, the line between reality and simulation blurs. Could harming a lifelike NPC character cross an ethical boundary? Additionally, some experts worry about the potential for unhealthy parasocial relationships to develop between players and these AI companions.

GenAI will create new experiences for players

New in-game experiences to players with increased realism and enhanced interactivity will be the prime transformation that GenAI tools will achieve:

  • ‘Intelligent’ NPC: NPCs are characters in a game that the player interacts with, but which are handled by the computer. With the new tools, such flat interactions will evolve into more real-life, responsive, and immersive interactivity – with dialogues generated by LLMs. The industry has already witnessed PoCs or products like Inworld AI being launched.
  • Procedural worlds: GenAI can amplify the diversity and realism of in-game universes. There are already a variety of games that use procedurally generated worlds to create a novel experience at each run-through of the game, such as No Man’s Sky or Minecraft Dungeons.
  • User-generated content/moderation: Many games not only focus on the ‘playing’ but also the ‘creating’ of experiences that are then shared between players (potentially generating revenue). GenAI, as it does for professional game creators, can help gamer communities create more compelling in-game experiences. It can support moderation of user-created content as well. Roblox has already launched its Assistant chatbot, which helps users to design, and generate revenue from, experiences.
  • Graphics upscaling: GenAI can contribute to graphics rendering by enhancing resolution and/or framerate through ML-based extra- and interpolation. This has been implemented in graphics card drivers and some games as well. For example, Nvidia’s latest version of its real-time AI-based graphics interpolation/enhancement tool (DLSS) is now capable of generating/interpolating additional frames.
  • Character animation: GenAI models can also enhance animation/deformation of complex elements that define the characters in a game – such as realistic reproduction of body movements, hair features, and clothing. Unreal Engine has launched ML Deformer framework in response to such challenges.

Challenges and complexities

Things are definitely going to change in the game development world, but initially it will be a gradual evolution rather than a sudden revolution. The existing system is going to get a serious boost as developers will become more creative and involve more diverse human roles to define richer gaming experiences.

Apart from new AI-powered features the gaming industry will have to tackle newer and more complex copyright issues with regards to AI-generated content. With the increasing involvement of AI in the game development process, the dynamics between different studios will definitely experience tremors. Some may save a ton of money, while others might be able to crank out new games way faster. Plus, user safety is going to be a growing concern as AI starts churning out all kinds of game content that will need to be carefully monitored.

The future is unwritten: A new era of interactive storytelling

The future of gaming with generative AI is wide open. While some developers aim to create tightly focused, artisanal experiences, others embrace the potential for open-ended, ever-evolving worlds. One thing is certain: generative AI is poised to transform the way we interact with video games, blurring the lines between player and character, and narrative and reality. Buckle up, gamers – the future of interactive storytelling is here.

 

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