AI Startup Raises $16M to Improve Video Game Characters

A team of ex-Google DeepMind researchers has unveiled an innovative AI behavior engine designed to enhance the interactivity of non-playable characters (NPCs) in video games. Operating under the name Artificial Agency, the Canada-based startup has emerged from stealth mode with $16 million in funding. Unlike traditional NPCs that often rely on repetitive dialogues, this new engine allows developers to assign specific motivations, rules, and goals to each NPC, resulting in more dynamic and engaging interactions with players. Artificial Agency recently secured an additional $12 million in a seed funding round co-led by Radical Ventures and Toyota Ventures. The founders expressed confidence that their approach to integrating AI-generated NPCs into game design will set them apart in a competitive market. However, concerns linger regarding the potential for major gaming studios to develop similar technologies in-house or their reluctance to incorporate generative AI due to risks associated with untested systems. The startup claims to be collaborating with several prominent AAA studios to refine its behavior engine, with plans for broader availability by 2025. While many game developers are open to utilizing generative AI, some remain cautious. In a demonstration, co-founder Alex Kearney showcased an NPC in Minecraft that adapted its responses based on player input, highlighting the engine's potential for personalized interactions. Despite the promise of enhanced gameplay, questions arise about the financial implications of implementing AI NPCs. While Artificial Agency suggests that these innovations may not increase costs for players, investor Daniel Mulet cautions that the associated inference costs could position AI features as premium offerings in the gaming market.