A startup developing the first artificial intelligence-powered “behavior engine” for video game characters has raised $16 million.
Canada-based AI startup Artificial Agency has Stealth Mode and Raised $16 million in funding The startup, which has raised funding from investors including Radical Ventures and Toyota Ventures, said it will use the funds to further develop its flagship product, which helps game developers make video game characters more realistic and interactive with players. AAA Studiois known for its high-budget, high-profile games.
AI-powered behavior engines allow game developers to integrate generative AI into various aspects of their games, such as “quick improvisation” of scripted interactions for non-player characters (NPCs) and systems to control the pace and spawning of characters. NPCs are not controlled by the player and typically have pre-written scripts, which can limit the player's game experience.
In a statement shared with Quartz, Artificial Agency co-founder and CEO Brian Tanner said the funding will help the startup continue building its team and developing its behavioral engine so it can take it to market in 2025.
“We believe there is huge potential yet to be unlocked for AI in the games industry,” said Tanner. “Our behavior engine enables game developers to seamlessly incorporate runtime decision-making into every aspect of their game. Because the engine gives access to powerful technology, it has broad application across studios both large and small. It helps game teams iterate more quickly, drive new levels of creativity, and deliver truly lifelike and immersive gaming experiences for players.”
Tanner said Artificial Agency is “extremely excited” about the potential for its behavioral engine to create “an entirely new genre of games that are driven by social and runtime intelligence.”
The startup said it has partnerships with “several” AAA studios and aims to make its AI-powered behavior engine widely available to video game studios by 2025.
While the AI boom is driving demand for chips, the gaming industry has been a major customer for graphics processing units (GPUs) used in PCs and game consoles for decades. Started manufacturing video game chipsIs that Gaming revenue increased 18% year over year. The company said this in May during its fiscal first-quarter 2025 earnings report.
