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The Microsoft gaming division has been aggressive in the field of AI. Last year, they announced a partnership with Inworld to build AI game dialogue and narrative tools. The company’s latest foray into AI is the creation of an AI-powered Xbox chatbot that will assist with support queries and game refunds.

Microsoft Working On AI-Powered Xbox Chatbot Feature

According to a report by Tom Warren of The Verge, the company’s employees have been testing the virtual chatbot. Citing sources familiar with the matter, Warren said the chatbot “embodied AI character” and animates when responding to support queries. It is believed to be part of a bigger drive to apply AI to Xbox platforms and services.

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“This agent can help you with your Xbox support questions,” read a description of the Xbox chatbot internally at Microsoft. It is believed that Microsoft has expanded the test pool of the chatbot in recent days suggesting that the prototype called “Xbox Support Virtual Agent” may one day be rolled out to all Xbox customers. The Verge reached out to Microsoft for comments and the company confirmed the existence of the Chatbot.

Microsoft Working On AI-Powered Xbox Chatbot Feature


“We are testing an Xbox Support Virtual Agent, an internal prototype of an animated character that can query Xbox Support topics with voice or text,” wrote the general manager of gaming AI at Xbox, Haiyan Zhang in a statement sent to The Verge. “The prototype makes it easier and quicker for players to get help with support topics using natural language, taking information from existing Xbox Support pages.”

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Warren said the Xbox chatbot is similar to the solution that Microsoft encourages its customers to build to automate support tasks. Microsoft has Azure AI Bot Service used by businesses like PwC and Vodafone to build conversational AI bots.

AI-powered Xbox chatbot is one of the many AI features coming to Xbox

The Xbox chatbot breaks the ice by asking players “How can I help you today?” and can respond to various support requests swiftly including resolving issues with paid subscriptions and helping with a broken Xbox. According to Warren, the Xbox chatbot is also undergoing testing internally against queries relating to the Minecraft Realms subscription-based server hosting service.

Microsoft Working On AI-Powered Xbox Chatbot Feature

There is a broader plan to bring more AI-powered tools and features to the Microsoft Gaming division—and the Xbox chatbot is only part of the bigger picture. It is believed the tech giant is working on bringing AI features to game content creation—which was already expressed with the partnership with Inworld.

Some of the roles that the company wants to automate with AI tools include the creation of game assets and arts, AI game testing, and generative AI NPCs. Different companies including Ubisoft are all working on AI tools that will help to create NPCs that will feel more alive rather than the currently restrictive NPCs.

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Warren also reported that Microsoft is building AI-powered Copilots that will be deployed to moderation and safety tasks including the moderation of content on the Xbox platform and help with appeals. The tech giant is also exploring ways to use AI-powered assistants in games and assist players get help while playing.

Microsoft’s biggest rival in the game industry, Sony, is believed to be working towards launching the PS5 Pro console later this year. It will have the company’s native PlayStation Spectral Super Resolution (PSSR), an image upscaling technology that will work like Nvidia’s DLSS and AMD’s FSR upscalers.

Xbox employees have yet to publicly talk about the broader AI efforts in Microsoft’s Gaming division partly because of the controversial nature of the topic. Many believe that AI is partly responsible for the mass layoffs in the industry.

Anthony Emecheta

Anthony Emecheta has over a decade experience as a freelance writer. Gaming has always been a childhood hobby and he is excited to be collaborating with a gaming company as a content creator. It is like having all the things he loves in one place.


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