Microsoft Research has created Muse, a first-of-its-kind generative AI model that can generate a game environment based on visuals or players’ controller actions. It understands a 3D game world and game physics and can react to how players interact with a game.

Microsoft Corp. unveiled artificial intelligence tools that can create video-game scenes that would normally have to be programmed and animated by a human, a model it built using data collected from Xbox gamers and their controllers.