Microsoft has announced a new partnership with a generative AI startup Inworld AI to develop a new ‘AI design copilot’ system for Xbox game developers. According to Microsoft, the multi-year partnership will help console developers leverage the power of generative AI to create dialogue trees, generate random quests and even write detailed scripts for NPCs. The tech giant says the new tools will help “accelerate game developer creativity, reduce complexity, and enhance player experiences.” As part of the deal, Inworld AI will help Microsoft develop an AI design copilot that will help developers with scripts, dialogues and in-game quests, while the AI character engine can be easily integrated into Xbox games to dynamically generate stories, quests and dialogues. Inworld AI says its technology can also be used to give AI-generated characters voices and animations and also offers some safety controls to prevent them from going off-track.