Xbox developer tools are on the way for AI NPCs and more.
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The sad fact is that most of the generative AI advances don’t really help with this. They might make npc dialouge more flexible and less static, but nothing in the toolbelt Microsoft is offering would improve general NPC AI.
Maybe down the road we’ll see something, but I suspect MS is really just offering text and modeling automation.
I’m not sure about the Microsoft toolkit specifically, but I’m talking about something along these lines:
https://arxiv.org/abs/2304.03442
I’m actually experimenting with something similar at the moment, though it’s very early stages right now.