Microsoft is reportedly making an Xbox AI chatbot it plans to use to automate support tasks such as game refunds, deal with broken consoles and subscription issues, and answer questions about error codes.

The Verge reports this chatbot, which is described as an “embodied AI character” that animates, is currently in testing. According to the site, the “Xbox Support Virtual Agent” is part of a bigger plan to apply AI to Xbox.

“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,” confirmed Haiyan Zhang, general manager of gaming AI at Xbox, in a statement to The Verge.

Other areas of Xbox that Microsoft is looking to apply AI to include game development, game operations, and the Xbox platform itself. According to The Verge, Microsoft is experimenting with AI-generated art and assets for games, AI game testing, and generative AI NPCs. Meanwhile, Microsoft is said to be considering building AI-powered Copilots for safety and moderation tasks, including content moderation on Xbox, and AI-powered assistants for in-game help.

Last year, Microsoft announced a partnership with Inworld AI to create game development tools for Xbox that would let developers create AI-enhanced characters. Inworld AI's character engine should sound familiar to some, as veteran modder Bloc told IGN in August that he used the Inworld Character Engine tool to create the AI-powered GTA 5 story mod Sentient Streets before Take-Two shut it down.

Last month, video game support developer Keywords Studios said it had tried to create an experimental video game solely using artificial intelligence but failed because the technology was "unable to replace talent.”