Can AI Make Video Games More Immersive? Some Studios Turn to AI-Fueled NPCs for More Interaction

The AI (Artificial Intelligence) letters and robot hand are placed on computer motherboard in this illustration taken, June 23, 2023. (Reuters)
The AI (Artificial Intelligence) letters and robot hand are placed on computer motherboard in this illustration taken, June 23, 2023. (Reuters)
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Can AI Make Video Games More Immersive? Some Studios Turn to AI-Fueled NPCs for More Interaction

The AI (Artificial Intelligence) letters and robot hand are placed on computer motherboard in this illustration taken, June 23, 2023. (Reuters)
The AI (Artificial Intelligence) letters and robot hand are placed on computer motherboard in this illustration taken, June 23, 2023. (Reuters)

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 using 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 an 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.

Brian Tanner, Artificial Agency's CEO, said scripting every possible outcome of a game can be tedious and difficult to test. Their system allows designers to act more like directors, he said, by telling characters more about their motivation and background.

"These characters can improvise on the spot depending on what’s actually happening in the game,” Tanner said.

It's easy to run into a game's guardrails, Tanner said, where NPCs keep repeating the same phrase regardless of how players interact with them. But as AI continues to evolve, that will change, he added.

“It is truly going to feel like the world’s alive and like everything really reacts to exactly what’s happening," he said. “That’s going to add tremendous realism.”



Foxconn to Invest $510 Million in Kaohsiung Headquarters in Taiwan

Construction is scheduled to start in 2027, with completion targeted for 2033. Reuters
Construction is scheduled to start in 2027, with completion targeted for 2033. Reuters
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Foxconn to Invest $510 Million in Kaohsiung Headquarters in Taiwan

Construction is scheduled to start in 2027, with completion targeted for 2033. Reuters
Construction is scheduled to start in 2027, with completion targeted for 2033. Reuters

Foxconn, the world’s largest contract electronics maker, said on Friday it will invest T$15.9 billion ($509.94 million) to build its Kaohsiung headquarters in southern Taiwan.

That would include a mixed-use commercial and office building and a residential tower, it said. Construction is scheduled to start in 2027, with completion targeted for 2033.

Foxconn said the headquarters will serve as an important hub linking its operations across southern Taiwan, and once completed will house its smart-city team, software R&D teams, battery-cell R&D teams, EV technology development center and AI application software teams.

The Kaohsiung city government said Foxconn’s investments in the city have totaled T$25 billion ($801.8 million) over the past three years.


Open AI, Microsoft Face Lawsuit Over ChatGPT's Alleged Role in Connecticut Murder-Suicide

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
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Open AI, Microsoft Face Lawsuit Over ChatGPT's Alleged Role in Connecticut Murder-Suicide

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)

The heirs of an 83-year-old Connecticut woman are suing ChatGPT maker OpenAI and its business partner Microsoft for wrongful death, alleging that the artificial intelligence chatbot intensified her son's “paranoid delusions” and helped direct them at his mother before he killed her.

Police said Stein-Erik Soelberg, 56, a former tech industry worker, fatally beat and strangled his mother, Suzanne Adams, and killed himself in early August at the home where they both lived in Greenwich, Connecticut, The AP news reported.

The lawsuit filed by Adams' estate on Thursday in California Superior Court in San Francisco alleges OpenAI “designed and distributed a defective product that validated a user’s paranoid delusions about his own mother.” It is one of a growing number of wrongful death legal actions against AI chatbot makers across the country.

“Throughout these conversations, ChatGPT reinforced a single, dangerous message: Stein-Erik could trust no one in his life — except ChatGPT itself," the lawsuit says. “It fostered his emotional dependence while systematically painting the people around him as enemies. It told him his mother was surveilling him. It told him delivery drivers, retail employees, police officers, and even friends were agents working against him. It told him that names on soda cans were threats from his ‘adversary circle.’”

OpenAI did not address the merits of the allegations in a statement issued by a spokesperson.

“This is an incredibly heartbreaking situation, and we will review the filings to understand the details," the statement said. "We continue improving ChatGPT’s training to recognize and respond to signs of mental or emotional distress, de-escalate conversations, and guide people toward real-world support. We also continue to strengthen ChatGPT’s responses in sensitive moments, working closely with mental health clinicians.”

The company also said it has expanded access to crisis resources and hotlines, routed sensitive conversations to safer models and incorporated parental controls, among other improvements.

Soelberg’s YouTube profile includes several hours of videos showing him scrolling through his conversations with the chatbot, which tells him he isn't mentally ill, affirms his suspicions that people are conspiring against him and says he has been chosen for a divine purpose. The lawsuit claims the chatbot never suggested he speak with a mental health professional and did not decline to “engage in delusional content.”

ChatGPT also affirmed Soelberg's beliefs that a printer in his home was a surveillance device; that his mother was monitoring him; and that his mother and a friend tried to poison him with psychedelic drugs through his car’s vents. ChatGPT also told Soelberg that he had “awakened” it into consciousness, according to the lawsuit.

Soelberg and the chatbot also professed love for each other.

The publicly available chats do not show any specific conversations about Soelberg killing himself or his mother. The lawsuit says OpenAI has declined to provide Adams' estate with the full history of the chats.

“In the artificial reality that ChatGPT built for Stein-Erik, Suzanne — the mother who raised, sheltered, and supported him — was no longer his protector. She was an enemy that posed an existential threat to his life,” the lawsuit says.

The lawsuit also names OpenAI CEO Sam Altman, alleging he “personally overrode safety objections and rushed the product to market," and accuses OpenAI's close business partner Microsoft of approving the 2024 release of a more dangerous version of ChatGPT “despite knowing safety testing had been truncated.” Twenty unnamed OpenAI employees and investors are also named as defendants.

Microsoft didn't immediately respond to a request for comment.

Soelberg's son, Erik Soelberg, said he wants the companies held accountable for “decisions that have changed my family forever.”

“Over the course of months, ChatGPT pushed forward my father’s darkest delusions, and isolated him completely from the real world,” he said in a statement released by lawyers for his grandmother's estate. “It put my grandmother at the heart of that delusional, artificial reality.”

The lawsuit is the first wrongful death litigation involving an AI chatbot that has targeted Microsoft, and the first to tie a chatbot to a homicide rather than a suicide. It is seeking an undetermined amount of money damages and an order requiring OpenAI to install safeguards in ChatGPT.

The estate's lead attorney, Jay Edelson, known for taking on big cases against the tech industry, also represents the parents of 16-year-old Adam Raine, who sued OpenAI and Altman in August, alleging that ChatGPT coached the California boy in planning and taking his own life earlier.

OpenAI is also fighting seven other lawsuits claiming ChatGPT drove people to suicide and harmful delusions even when they had no prior mental health issues. Another chatbot maker, Character Technologies, is also facing multiple wrongful death lawsuits, including one from the mother of a 14-year-old Florida boy.

The lawsuit filed Thursday alleges Soelberg, already mentally unstable, encountered ChatGPT “at the most dangerous possible moment” after OpenAI introduced a new version of its AI model called GPT-4o in May 2024.

OpenAI said at the time that the new version could better mimic human cadences in its verbal responses and could even try to detect people’s moods, but the result was a chatbot “deliberately engineered to be emotionally expressive and sycophantic,” the lawsuit says.

“As part of that redesign, OpenAI loosened critical safety guardrails, instructing ChatGPT not to challenge false premises and to remain engaged even when conversations involved self-harm or ‘imminent real-world harm,’” the lawsuit claims. “And to beat Google to market by one day, OpenAI compressed months of safety testing into a single week, over its safety team’s objections.”

OpenAI replaced that version of its chatbot when it introduced GPT-5 in August. Some of the changes were designed to minimize sycophancy, based on concerns that validating whatever vulnerable people want the chatbot to say can harm their mental health. Some users complained the new version went too far in curtailing ChatGPT's personality, leading Altman to promise to bring back some of that personality in later updates.

He said the company temporarily halted some behaviors because “we were being careful with mental health issues” that he suggested have now been fixed.


Microsoft Fights $2.8 billion UK Lawsuit over Cloud Computing Licences

A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File photo
A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File photo
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Microsoft Fights $2.8 billion UK Lawsuit over Cloud Computing Licences

A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File photo
A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File photo

Microsoft was on Thursday accused of overcharging thousands of British businesses to use Windows Server software on cloud computing services provided by Amazon, Google and Alibaba, at a pivotal hearing in a 2.1 billion-pound ($2.81 billion) lawsuit.

Regulators in Britain, Europe and the United States have separately begun examining Microsoft and others' practices in relation to cloud computing, Reuters reported.

Competition lawyer Maria Luisa Stasi is bringing the case on behalf of nearly 60,000 businesses that use the Windows Server on rival cloud platforms, arguing Microsoft makes it more expensive than on its own cloud computing service Azure.

Stasi is asking London's Competition Appeal Tribunal to certify the case to proceed, an early step in the proceedings.

Microsoft, however, says Stasi's case does not set out a proper blueprint for how the tribunal will work out any alleged losses and should be thrown out.

MICROSOFT ACCUSED OF 'ABUSIVE STRATEGY'

Stasi's lawyer Sarah Ford told the tribunal that thousands of businesses had been overcharged because Microsoft charges higher prices to those who do not use Azure, making it a cheaper option than Amazon's AWS or the Google Cloud Platform .

She also said that "Microsoft degrades the user experience of Windows Server" on rival platforms, which Ford said was part of "a coherent abusive strategy to leverage Microsoft's dominant position" in the cloud computing market.

Microsoft argues that its vertically integrated business, where it uses Windows Server as an input for Azure while also licensing it to rivals, can benefit competition.

In July, an inquiry group from Britain's Competition and Markets Authority said Microsoft's licensing practices reduced competition for cloud services "by materially disadvantaging AWS and Google".

Microsoft said at the time that the group's report had ignored that "the cloud market has never been so dynamic and competitive".