We will see a lot more use of AI in the creation of games i.e. the environment, modeling, functions far before we see the actual NPCs in the game powered by AI.
In fact I predict we will see AI powered NPCs in the real world before we see them in the gaming world. If you're going to invest the time, energy, and money making full autonomous interactive NPCs there is a lot more business upside deploying them in real life than virtually. At that point incorporating them in gaming will be fairly trivial.
In terms of interacting/competing with AI in the gaming space I see it as being mostly focused on more binary or 2D type of gaming. Think Alpha Go, chess, checkers, basic card games. Things where the difficulty or competitive is driven by AI but not in a humanoid or character form.
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