How Ubisoft, Xbox, and Blizzard Are Using AI to Make Next-Generation Games

UPDATED: Final Fantasy maker Square Enix says it used AI tools for its big new game, plus Ubisoft is tapping Nvidia's gaming tech for NPCs.

Some of the most prolific video game studios are using generative AI to automate the tedious elements of game design, like NPC dialogue and creating new levels of detail for in-game renderings—all in an effort to speed development and focus human talent on more important elements.

Generative AI is artificial intelligence that can create new content—such as text, images, or music—using prompts. It learns from a large amount of data and uses that data to generate new, complementary content ranging from simple sentences to videos and complex works of art.
Although a technology that’s only recently captured the imagination (and concern) of the mainstream, here is how some game developers are already using AI.

Blizzard Entertainment

Blizzard Entertainment, the studio behind Diablo, Overwatch, and World of Warcraft, reportedly revealed in an internal memo in May 2023 that the company had begun experimenting with AI to create in-game character renderings.
According to the New York Times, Blizzard deployed its own internal AI tool, warning employees not to use third-party AI platforms to prevent the leak of confidential company data and IP. Although Blizzard executives were excited about the potential use of AI in the next generation of games, some employees said the company’s AI did a bad job of catching in-game bugs and issues in the games it was tested on.
Artificial Intelligence

Half of Game Devs Use AI, But Creatives Are Wary: Survey

A new report by video games news outlet Game Developer and the Game Developer Conference (GDC) highlighted the difficult year the video game industry faced in 2023, including studio closures, layoffs, and the impact of generative AI. “To say it’s been a tough year for game developers would be an understatement,” Game Developer publisher Alissa McAloon said in the report. “Developers have faced adversity and uncertainty at every turn, as technology shakeups and workplace instability continue to.

Square Enix

In April 2023, Square Enix's AI division published a demo of its AI-generated update to the 1983 text adventure game, The Portopia Serial Murder Case, highlighting how large language models could be applied to text-based games.
The company behind Final Fantasy and Kingdom Hearts has been looking at AI for a while now. In May 2022, Square Enix announced that it would sell several of its subsidiaries and the Tomb Raider franchise (among others) to Sweden-based Embracer Group AB, and use the funds to invest in artificial intelligence as well as Web3 games. Square Enix has since backed the AI startup Atlas, which uses generative AI to turn text and images into 3D worlds.
Artificial Intelligence

'Final Fantasy' Maker Square Enix's Next Big Game Features AI Art

After announcing earlier this month that the company plans an “aggressive” move into utilizing artificial intelligence tools, video game giant Square Enix confirmed Tuesday the use of AI-generated art in the upcoming game Foamstars. According to a report by video game news outlet VGC, Square Enix used AI to create in-game album covers for the music featured in the Foamstars soundtrack. “As developers, we’re always looking at new technologies to see how they can assist with game development,”.

In January 2024, Square Enix confirmed that it used AI image generator Midjourney for the creation of its next big game, the colorful PlayStation 5 and PS4 shooter Foamstars. Midjourney was used to generate in-game album artwork for the original soundtrack, but insisted that everything else was human-created.

“We loved what was created and used them as the final album covers players will see in the game,” a Square Enix representative said. “Everything else was created entirely by our development team.”

Roblox

The online gaming platform Roblox announced the launch of two new generative AI tools in February 2023 to streamline game creation: Code Assist and Material Generator.
Currently in beta, the tools automate basic coding tasks by generating helpful code snippets and creating object textures from prompts. Roblox said that using generative AI makes the creative process easier and faster, adding that there are plans to enable third-party AI services as well in the hopes of enticing AI developers and creators to the Roblox platform.
Roblox co-founder and CEO David Baszucki said in August that he believes the AI tools will help players make games that are "more rich and dynamic."
Artificial Intelligence

Roblox Is Tapping AI to Generate 'More Rich and Dynamic' Games: CEO

Roblox is one of the most popular video game platforms in the world, drawing in tens of millions of daily users to play and create while serving as an entryway into the metaverse for creators and brands alike. And the company’s CEO thinks generative AI will only improve the experience for all involved. During the company’s Q2 2023 earnings call on Wednesday, Roblox co-founder and CEO David Baszucki outlined his vision for the game’s embrace of generative AI tools following initial steps earlier...

Ubisoft

Ubisoft, the creator of the Assassin’s Creed franchise, announced the launch of Ghostwriter in March 2023. This AI tool lets game developers generate first draft non-player character (NPC) dialogue, colloquially known as “barks,” allowing writers to focus on story development.
Ubisoft says the ultimate goal is to give designers the ability to create AI systems tailored to their specific needs by using a back-end tool called Ernestine for creating large language models of their own—like Ghostwriter. And in January 2024, Nvidia said that Ubisoft is one of a handful of game developers that have committed to using its AI tools to create chattier, more convincing non-playable characters (NPCs).

Ubisoft Will Tap NVIDIA's AI Tools to Build Chatty Game Characters

Tech giant NVIDIA’s stock price has risen to all-time highs Monday as the computer chip-maker and AI tech developer announced advancements in its Avatar Cloud Engine (ACE)—and that game publishers like Ubisoft have vowed to use it. According to the announcement made during CES today, game developers and publishers can now apply for early access to two of NVIDIA’s ACE Production Microservices offerings and deploy its tech in their games. The first, Audio2Face, uses AI to make game character’s face.

Microsoft

Already betting heavily on generative AI with a $10 billion investment in OpenAI, Microsoft in November said it is adding an AI design copilot that adds generative AI features for Xbox game developers.
“Our goal is to deliver state-of-the-art AI tools for game developers of any size,” wrote Xbox General Manager of Gaming AI Haiyan Zhang.

'Disrespectful and Dangerous': Video Game Writers, Actors Blast Microsoft for Xbox AI Tools

As tech companies continue to push for AI development, the humans expected to use such tools are increasingly sounding the alarm about potential job losses and the poor-quality content that could result from AI tools. Microsoft and its M12 Ventures portfolio company, Inworld AI, announced that the tech firms are developing generative AI tools for video games. Billed as a two-part toolkit, the AI offering for game developers consists of an AI “design copilot” and an AI character runtime engine to.

Microsoft said the new AI tools—thanks to Inworld AI, one of the portfolio companies in the tech behemoth's venture arm—are meant to empower game developers and allow devs to turn prompts into game elements, including scripts, dialogue trees, and quests. However, the move received substantial pushback from game developers and performers alike, who said the move threatens their jobs.

NCSoft

In March 2023, NCSoft—creator of Aion, Guild Wars, and the Lineage series of games—unveiled its digital human technology in a trailer for the upcoming game Project M using Unreal Engine 5. The company created the digital human's dialogue using NCSoft's AI text-to-speech synthesis technology, which can translate text into human speech as well as reproduce an actor's way of speaking, accent, and emotions.
Not content to stop at AI-generated voices, NCSoft also used “voice-to-face” technology to add facial expressions and lip-sync the dialogue.
Artificial Intelligence

Nvidia Is Making Games More Lifelike With AI

Technology giant Nvidia released a demo of its NVIDIA Avatar Cloud Engine (ACE) for Games during a packed Keynote at the annual COMPUTEX 2023 trade show on Sunday, showcasing on a very big screen the potential of harnessing artificial intelligence in gaming. “This is the future of video games,” Nvidia CEO Jensen Huang told the audience. “Not only will AI contribute to the rendering and the synthesis of the environment, AI will also animate.

Nvidia

Technology giant Nvidia released a demo of its NVIDIA Avatar Cloud Engine (ACE) for Games in May 2023. The demo depicted an AI-generated rendering of a ramen shop and an NPC behind the bar speaking with the player.
By using AI, the NPC can understand meaning with better interactions, explained Nvidia CEO Jensen Huang. Created in partnership with Melbourne-based Convai, ACE incorporates several Nvidia services, including NeMo, Riva, and Omniverse Audio2Face.
Nvidia announced in January 2024 that Ubisoft, Riot Games parent Tencent, Genshin Impact maker MiHoYo, and Chinese studios NetEase and Ourpalm are among those using its AI tools for more believable NPCs.