Artificial Agency raises $16 million: using AI to make NPCs in games more realistic

You are playing a video game where NPCs (non-player characters) can not only talk to you, but also understand your needs and complete complex tasks without your explicit instructions. This is not science fiction, this is Canada.StartupsArtificial AgencyWhat is being done.

A group of former Google DeepMind researchers have created an AI behavior engine that aims to transform traditional video games into more dynamic experiences by improving NPCs’ behavior and interactions with players.

Artificial Agency raises $16 million: using AI to make NPCs in games more realistic

Source Note: The image is generated by AI, and the image is authorized by Midjourney

Artificial Agency just completed a $16 millionFinancing, and emerged from stealth mode. They believe their behavior engine will make them stand out from the crowd of companies using AI to generate more realistic NPCs.

Traditionally, NPCs are guided through decision trees and pre-written scripts, which often limit the number of outcomes that players can experience. For example, most NPCs in games only have a few repetitive dialogues in response to player actions, which often seem unreal and boring.

Artificial Agency's behavior engine abandons this framework and transforms the role of the game developer into more of a stage manager. The engine requires developers to give each NPC a set of motivations, rules, and goals that will determine how the NPC responds to the player. This technology can be integrated into existing video games or used as the basis for entirely new games.

The Edmonton, Alberta-based startup is entering an increasingly crowded field. Competitors include the likes of Inworld and Nvidia, which has been working in the AI-driven NPC space for some time.

Artificial Agency believes that integrating AI-generated NPCs into video game design is the way of the future. “The conversations we often have with these studios are not about if, but when,” co-founder and CEO Brian Tanner told TechCrunch. “The kind of dynamic interactions and dynamic responses that our system allows for will become standard in the gaming industry in the coming years.”

Artificial Agency recently raised $12 million in a seed round co-led by Radical Ventures and Toyota Ventures. Previously, it received an undisclosed $4 million in pre-seed funding from Radical Ventures, bringing its total funding to $16 million.

Tanner estimates that the AI inference cost of a demo that lasts about five minutes is $1, but he noted that it would have cost $100 a year ago. Artificial Agency expects costs to continue to fall, thanks to improvements in GPU efficiency and optimization of AI models. Currently, the startup uses open source models, including Meta's Llama3.

Mulet said his venture capital firm believes game studios would be willing to pay a licensing fee for Artificial Agency’s technology, but that once deployed, it would likely result in players paying monthly fees.

"The inference costs associated with running these systems mean it has to be some kind of premium feature," Mulet said. "As a gamer, will you pay $2.99 or $12.99 a month? It's too early to tell."

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