Few gaming genres have benefited more from AI advancements than open-world games. These expansive universes, defined by player freedom and exploration, are becoming smarter, more immersive, and more dynamic.
“Generative AI can bring agency to immersive experiences, from more intelligent non-player characters (NPCs) to dynamic storytelling that adapts to player decisions,” says Apurva Shah, Co-Founder & CEO of Duality AI. He envisions a future where games offer “choose-your-own-adventure on steroids,” with players actively shaping storylines in real-time. Duality AI's Falcon platform, which leverages digital twin simulations, enables virtual worlds to evolve based on player interactions. Imagine an NPC that remembers past conversations and reacts differently depending on your choices, adding layers of depth and realism to gameplay.
NVIDIA’s groundbreaking Digital Human Technologies is already making this vision a reality. The company showcased lifelike NPCs with emotional intelligence, powered by advanced AI earlier in 2024. These characters respond to player actions with nuanced behaviours, creating richer, more engaging narratives.
For instance, the NPCs in Red Dead Redemption 2 are brought to life through advanced AI systems and exhibit lifelike behaviours and interactions, reacting dynamically to the player's actions and the game environment. They follow daily routines, respond to environmental changes, and remember past interactions with the player, adding continuity and realism to the game world. A character in the game might remember if you helped or harmed them, influencing their future behaviour towards you and making the game world feel alive and immersive.
Artificial Intelligence today is powering various aspects of games and the industry at large; finding applications in not only the creative process but also the post-launch success of titles, specifically in free-to-play multiplayer live service games.
“AI enables hyper-personalised experiences that drive player retention and monetisation,” says Sameer Pitalwalla, Head of Gaming at Google Cloud, APAC. For subscription-based games, AI can tailor difficulty levels, suggest new content, and predict churn, helping companies proactively retain subscribers.
In free-to-play games, AI fine-tunes in-game economies, balancing microtransactions and rewards to optimise player spending. “Dynamic matchmaking and personalised offers ensure players feel rewarded without being pressured,” adds Pitalwalla.
He is moderating a panel where Desai and Shah (along with American game developer Frank Harmon) will discuss everything from NPC development to AI’s influence on storytelling. Called 'Pixels and Play,' the Avid Learning event will bring together industry leaders to explore AI’s role in gaming on December 17 at IFBE in Mumbai's Ballard Estate.
The Ultimate Gaming Analyst
For the Indian gaming market, where free-to-play mobile games dominate, retaining players is a critical challenge. AI is stepping in as the ultimate analyst.
“AI-based analytics tools allow developers to understand player preferences in real-time,” says Sameer Desai, a video games industry consultant and founder of gaming festival IGX. “They can pinpoint what features players love, where they drop off, and how to keep them engaged longer.” This data-driven approach ensures games remain compelling while also improving monetisation strategies. Balanced microtransactions and personalised ad placements can be optimised using machine learning, making the experience seamless for players and profitable for developers.
From Google Cloud’s perspective, tools like Vertex AI are enabling developers to scale these strategies. By using natural language processing and predictive modelling, companies can analyse feedback, identify potential player disengagement signals, and adjust game mechanics in real time. The result? Higher engagement rates, longer play sessions, and improved player satisfaction scores.
Revolutionising Game Development
Developers can now automate labour-intensive tasks like asset creation, freeing up time for innovation. “AI can automate modeling and texturing of 3D assets, allowing developers to create more expansive worlds faster,” says Shah. At Duality AI, digital twin simulations are central to this effort. These virtual counterparts of physical assets allow developers to test environments, mechanics, and AI behaviours in controlled settings before deploying them in the game.
This approach mirrors real-world applications, like training autonomous vehicles in simulated environments, but in gaming, it enables rapid iteration. Developers can create richer, more complex worlds without being bogged down by time-consuming manual processes.
Emerging Trends
One of the most exciting prospects is its potential to craft dynamic, evolving narratives. Traditional storytelling in games follows a linear path, but AI introduces the possibility of emergent storytelling (where plotlines adapt to player choices in real time).
“Imagine a world where every player experiences a unique story tailored to their actions,” says Shah. “AI doesn’t just create static worlds; it allows them to grow and respond dynamically.” This capability turns games into living ecosystems, where players feel a true sense of agency and ownership.
This year, AI chips like Zaman’s GameShift have pushed the boundaries further by enabling faster real-time calculations for adaptive narratives. The chips ensure smoother transitions and seamless updates to game worlds, even in high-pressure scenarios.
Real World Applications
The innovations powering gaming AI aren’t limited to virtual worlds. They have tangible implications in the real world. Shah’s work with Duality AI demonstrates this crossover. “Digital twins act as a bridge between virtual and physical worlds,” he explains. These simulations allow industries to test systems safely and efficiently, from autonomous vehicles to smart cities.
In gaming, this technology ensures virtual environments mimic real-world physics, enhancing realism and immersion. Players can now interact with game worlds that feel alive, where every decision has a consequence.
AI is creating smarter games, richer narratives, and more engaging experiences. The metrics speak for themselves: AI-driven personalisation can reduce player churn by 15-25 per cent (according to a study by study by Frost & Sullivan), increase average session durations, and enhance overall satisfaction. These improvements make AI not just a tool but a cornerstone of modern gaming strategies.
