Jam & Tea Studios, a new gaming startup, is using generative AI technology to redefine how players interact with non-playable characters (NPCs) in video games.
This innovative approach is intended to transform player engagement by moving beyond traditional scripted NPC behavior, which often feels monotonous and unrealistic. By integrating AI, Jam & Tea allows for more dynamic and personalized interactions, enabling players to have natural conversations with NPCs and explore a wider range of experiences.
Founded by veterans from Riot Games, Wizards of the Coast, and Magic: The Gathering, Jam & Tea recently announced its debut game, Retail Mage, which will utilize generative AI to enhance various aspects of gameplay. The game will employ AI tools to handle gameplay mechanics, generate content, create dialogue, and even produce items, thereby expanding the possibilities within the game world.
Retail Mage is a role-playing game (RPG) that places players in the role of a wizard working as a salesperson at a magical furniture store. The primary objective is to earn five-star customer reviews, although players can choose to either diligently assist customers or cause chaos. With AI-powered NPCs acting as customers, the game opens up a wide array of potential outcomes based on player choices and interactions.
In Retail Mage, customers approach players with unique requests, and instead of relying on pre-set dialogue options, players can type their responses into a text generator. This allows players to input commands like “say something charming,” prompting the AI to generate multiple dialogue options in real time. The inclusion of AI-driven NPCs promises to make the game experience more spontaneous and engaging.
Jam & Tea is not alone in exploring AI-enhanced NPC interactions. Other companies like Artificial Agency, Inworld, and Nvidia are also developing similar technologies. Additionally, major gaming companies such as Ubisoft have introduced AI-driven tools like “Ghostwriter” to generate dialogue for NPCs in their games.
While generative AI offers significant advantages, it also presents challenges. One concern is the unpredictability of AI, where NPC behavior can become erratic, leading to a frustrating player experience. There’s also the risk of AI “hallucinations,” where the NPCs may provide inaccurate or nonsensical responses. To address these issues, Jam & Tea plans to continually improve its AI engine and implement guardrails to prevent inappropriate conversations. Players can also rate NPC responses, providing valuable feedback to refine character behavior.
The game encourages creativity, allowing for inventive interactions that can lead to unexpected scenarios. For example, during playtesting, a player expressed boredom, prompting an NPC to suggest a game of hide and seek. This spontaneous activity was not pre-programmed but emerged naturally from the AI’s ability to adapt to player input, showcasing the potential of generative AI to create engaging, real-time experiences.
Jam & Tea has experimented with various large language models (LLMs), including OpenAI, Google’s Gemma, Mistral AI, and Meta’s Llama, and is in the process of fine-tuning its chosen model to enhance character responses.
Beyond dialogue, the AI engine in Retail Mage extends to object interaction, allowing players to manipulate or create items based on their intentions. In a demo, players could retrieve or fabricate items, like summoning an antelope-shaped plush pillow for an NPC customer. Although the physical item may not visually appear, the action is acknowledged within the game’s inventory system, offering a canvas for player imagination and creativity.
Jam & Tea ensures that AI technology will not replace the work of artists, as all 2D and 3D assets in the game will be created by real human designers. This commitment highlights the studio’s balanced approach to integrating AI while maintaining the integrity of creative contributions.
With only eight team members, Jam & Tea faces the challenge of competing with larger gaming companies. However, by pioneering AI technologies early, the studio positions itself to adapt and grow alongside advancements in AI models. The company has already secured $3.15 million in seed funding and plans to raise additional capital to support its growth.
Retail Mage will be available for $15, with additional game packs offered for purchase. Initially launching on PCs, the company plans to expand to cross-platform compatibility in the coming years. The game is expected to be released to the public later this fall.
Written by Vytautas Valinskas
