Qorpo

How AI Can Hack User Experiences in Web3 Games

During the crypto wave in February 2024. The market cap of Web3 game tokens grew by 54% and reached $18.5 billion by the month’s end. 

The number of daily active users (DAU) in that period also saw a 28.9% increase compared to the previous month. That’s 2.3 million active gamers engaging with Web3 games.

Despite the impressive numbers, user engagement and retention within crypto games have still not improved so much. 

While the overall user experience in these games may not match web2 games. An indie web3 gaming studio saw a 5% playtime increase in playtime on their game MageCosmos after introducing AI NPCs to the gameplay.

88% of gamers already believe advanced AI will improve the gaming experience. But what does this all mean for Web3 games?

Well, it means Web3 games are already special and can become more special.

With Web3 games, players have control and ownership over their game assets. 

This means players have a say in how the game should be shaped. And can easily sell their in-game assets on the secondary market. Or use them in other games across the gaming ecosystem.

The case study on MageCosmos truly showed the transformative potential of AI in Web3 games. However, the biggest opportunity of AI and Web3 games is the possibility for games to have dynamic, player-driven experiences with intelligent and adaptive game environments.

But that’s not all; the possibility of decentralized economies that offer true ownership and also interoperability of in-game assets in these kinds of games means one single thing. AI can hack user experience in Web3 games.

In this article, we will explore some case studies on how the integration of AI in Web3 gaming can enhance user and gaming experiences.

How AI is enhancing Web3 gaming experience 

The integration of AI in web3 games has opened up a new set of possibilities and made significant changes in the way web3 gaming is perceived. Players can now enjoy more personalized experiences 

Now there’s a possibility in games that AI can analyze players’ feedback, reviews, and other data to understand their preferences in various parts of the game.

On one hand, developers can use these insights to make data-informed updates and improvements to personalize the gaming experience. On the other hand, players enjoy a more intuitive game that’s custom to their needs.

36% of developers are already implementing AI in game development and reducing operational costs by 30-50% according to the market data report revealed by GITNUX.30–50%, 

Unity Gaming Report also disclosed that 62% of studios have leveraged AI for a smooth workflow and 71% reported that the integration of AI has improved their efficiency and delivery.

Player-experience modelling (PEM) is a popular trend in AI and it is already being introduced to games. It mathematically models and predicts a player’s experiences and their perception towards the game.

Here’s a scenario on how this could play out. If you as the player seem to be bored by the game, it can auto-adjust the gaming mechanism to provide a more engaging experience for you. The AI can also increase or decrease the game’s difficulty depending on the player’s skill level. 

These AI agents use machine learning to understand the player’s style and ensure that the game’s difficulty and experience are adjusted to suit the player’s preference naturally. Games like Fifa have already introduced this feature.

Many players have doubts about AI and how it can improve gaming. But this is what’s true: AI-driven Web3 Games can be the Next Level of Gaming Experience. Here’s how:

AI-powered NPCs

One of AI’s use cases at the centre stage of refining the Web3 gaming experience is NPCs. 

These AI-powered NPCs have made the stone-like prescribed dialogues obsolete. A study on the future of NPCs showed that 52% of gamers dislike NPCs with repetitive dialogues.

AI NPCs can understand players’ actions and with NLP, they can engage in a smooth and typical human conversation. They also respond to the players’ past actions and choices.

Emotional intelligence is another area in which NPCs shine. Picture playing a game where the NPCs can sense your emotions through the tone of your voice, actions or interactions and respond accordingly.

This could lead players to be emotionally invested in the game. A study on NPCs showed that 76% of gamers want NPCs to be more aware and adaptive to their current state.

AI NPCs can also streamline the onboarding tutorials instead of the static, boring and repeated script. Imagine an AI that mentors you through the whole onboarding process

And streamline the process to be faster or more detailed depending on your skill level. Inward’s research on over 1000 games showed that players enjoy relating with these AI NPCs.

AI-Generated Content and Assets

AI can significantly reduce development time and costs by generating game content and assets.

From creating realistic environments to designing intricate character models, AI tools can automate many aspects of game development. This not only speeds up the production process but also allows developers to focus on more creative and complex tasks.

For instance, AI tools like Scenario and Pingle Studio’s generative AI models can automate the creation of 3D models, textures, and sound effects.

 These tools allow developers to train AI on vast datasets of existing assets. Enabling the generation of new content that matches the desired aesthetic and design principles. 

This automation not only speeds up the production process but also frees developers to focus on more creative and complex tasks, such as storytelling and gameplay mechanics.

This flexibility is invaluable in the fast-paced gaming industry, where time-to-market can be a critical factor.

Real-Time Fraud Detection and Prevention

In blockchain-based games, security is paramount. AI can enhance security by detecting and preventing fraudulent activities in real time. 

Machine learning algorithms can analyze transaction patterns and identify anomalies, ensuring that the gaming ecosystem remains fair and secure for all players.

For example, AI-driven fraud detection systems can monitor in-game transactions and flag suspicious activities, such as unusual spending patterns or rapid transfers of assets

These systems use advanced machine learning techniques to learn from historical data and continuously improve their accuracy in detecting fraud. 

A notable application of AI in fraud prevention is its ability to identify and mitigate bot activities. 

Bots can disrupt the gaming experience by automating tasks that give certain players an unfair advantage. AI can detect these bots by analyzing gameplay patterns and identifying certain behaviours that are different from normal human interactions.

These are some of the ways AI is being integrated into web3 games and it is bringing the next level of gaming experience for players who will enjoy the games more, have more fun content to interact with and worry less about Fraud

Here’s how Gameswift and Atlas are Incorporating AI into Web3 Games

Gameswift

On August 29th, Gameswift announced a partnership with Fetch.ai. Fetch.ai is a brand building an agentic framework for autonomous digital ecosystems. This partnership aims to support AI advancement and integrate AI-driven features in enhancing gameplay and user interaction.

The data from Gameswift Launcher showed that 67% of its users have used GPU capacity that can aid AI applications like natural voice generation, text-to-speech, music creation and document analysis.

Fetch.ai’s agent infrastructure will be integrated into Gameswift ‘s core app, the GameSwift Launcher and will enable its user to contribute their GPU and earn profits in return.

Gameswift Launcher users will also host large language models (LLMs) on their local devices to explore the various AI advancements through Fetch.ai’s core products, agentverse and DeltaV architectures.

These models will be available to both communities to explore the various AI capabilities and Gameswift will be an official member of the Fetch.AI foundation 

Maria Minaricova, head of business development at Fetchmai, said in a statement:

This collaboration will unlock new possibilities for AI development by harnessing the untapped GPU power of GameSwift’s vast user base.

Atlas and Generative AI:

Atlas is a 3D generative AI platform with the vision of enabling “game developers and XR builders to create experiences that were previously impossible, including virtual worlds with constantly updating maps and real-time aesthetic evolutions informed by users’ actions.


After two years of quietly building, Atlas revealed their $6M seed funding, which consisted of a $4.5 million and a $1.5 million round led by 6th Man Ventures and Collab+Currency, respectively.

Ben James (the founder of Atlas) explained in an interview with Behind the Brand:

Our focus is not to replace designers and creators; rather, we want to augment their creativity and enhance their ability to create virtual worlds, games and experiences in ways that aren’t possible without AI.

The use of Atlas’ AI in procedural content generation (PCG) also aids game character design and storytelling. One of the most highly anticipated Web3 games, Sharapnel, also  leveraged Atlas’ AI in building an immersive gaming experience on the Avalanche blockchain 

The developer and publisher of the extraction shooter game, Shrapnel, raised an additional $20 million in funding after they previously secured a $10.5 million seed funding round in late 2021

Web3 Games and AI: The Technology of The Future

The future of AI in gaming opens a world of endless possibilities. Imagine being ushered into a new and immersive world every time you launch a game. You never get tired of replaying.

You also get to have deep and meaningful conversations with NPCs, which transforms the game’s story and keeps you on your feet, looking out for what happens next.

In a survey, it was revealed that 81% of gamers would gladly pay more for a game with AI NPCs and most developers believe that AI NPCs will generate more than 40% ROI when adopted.

It’s just like Ben said while he spoke with Brandon Pham in an interview 

“AI will become a standard tool in our toolkit, just like 3D modelling software or game engines. It will help us create more complex and immersive games faster and with fewer resources.”