A team of ex-Google DeepMind researchers has launched an AI behavior engine designed to enhance the traditional video gaming experience by revolutionizing the behavior and interactions of non-playable characters (NPCs).

While many companies are leveraging AI to create more lifelike NPCs, Canada-based Artificial Agency, emerging from stealth mode with $16 million in funding, believes its behavior engine offers a unique edge.

Typically, NPCs operate based on decision trees and pre-written scripts, which often constrain the variety of outcomes players can encounter. For instance, most NPCs in games react to player actions with a limited set of repetitive dialogues, making interactions feel unrealistic and monotonous.

Artificial Agency’s behavior engine abandons this conventional structure, positioning game developers more as directors. The engine requires developers to define a set of motivations, rules, and goals for each NPC, which then determine how the NPCs respond to players. This technology can be integrated into existing games or used to develop entirely new ones.

Based in Edmonton, Alberta, Artificial Agency is entering a competitive market. Rivals include Inworld, which also offers AI-driven NPC behaviors, and Nvidia, which has been developing AI-powered NPCs for some time.

Artificial Agency is confident that incorporating AI-generated NPCs into game design is the future of the industry.

“The discussions we have with these studios aren’t about if, but when,” co-founder and CEO Brian Tanner shared with TechCrunch. “The kind of dynamic interaction and response our system enables will soon be a standard in the gaming industry.”

The startup recently secured $12 million in a seed round co-led by Radical Ventures and Toyota Ventures, according to the founders. Previously, it had raised $4 million in an undisclosed pre-seed round from Radical Ventures, totaling $16 million in funding. Other contributors in the latest seed round included Flying Fish, Kaya, BDC Deep Tech, and TIRTA Ventures.

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