Xbox has teamed up with a startup called Inworld AI to create a generative AI toolset that developers can use to create games. It's a multi-year collaboration, which the Microsoft-owned brand says can "assist and empower creators in dialogue, story and quest design." Specifically, the partners are looking to develop an "AI design copilot" that can turn prompts into detailed scripts, dialogue trees, quests and other game elements in the same way people can type ideas into generative AI chatbots and get detailed scripts in return. They're also going to work on an "AI character runtime engine" that developers can plug into their actual games, allowing players to generate new stories, quests and dialogues as they go. On Inworld's website, it says its technology can "craft characters with distinct personalities and contextual awareness that stay in-world."