How AI Will Turn Your Words Into Worlds

Key Takeaways

• Decentralized technologies create new opportunities for users to take control of their digital assets.
• Virtual worlds like Roblox are leading the way in introducing AI tools that empower users to create and share immersive experiences.
• As AI-generated virtual worlds expand, questions about ownership and control arise.

Virtual Worlds are the next-generation social hangouts, and more people are spending time exploring them. User-generated content will be put on steroids, as more games and virtual environments introduce AI tools to assist with world-building.

So, how are the gaming giants thinking about the role of AI in gaming innovation?

AI in Gaming

Roblox’s vision statement describes itself as the world’s biggest virtual economy. With over 79.5 million daily active users  in Roblox last quarter and 16.5 million monthly paying players, the Roblox GDP is more than in some small countries.

Just last year, Roblox founder and CEO David Baszucki made headlines by predicting that virtual worlds could be created via text and voice prompts. This year, they are making it happen, and the speed of acceleration is impressive, to say the least. 

In a post on social platform X, Baszucki highlights  that “generative AI can create a 3D race car. Roblox is now working on 4D generative AI, where that race car has an engine, moveable parts, and a physics rig that enables it to drive down a track — all generated with just a text or voice prompt.”

Baszucki points to the “three clouds” of AI innovation that bring these immersive environments to life. The first cloud enhances platform efficiency by automating tasks like moderation and content translation, making the platform more scalable. The second cloud democratizes creation, allowing anyone, from novices to pros, to generate complex avatars, intricate environments, and even entire games with simple commands.

But the third cloud pushes the boundaries of imagination, where AI begins crafting virtual digital personas that look, act, and think like us, potentially redefining what it means to be present in a digital world.

As virtual and real boundaries continue to blur, gaming giants like Roblox and others are experimenting with creating fun digital experiences using artificial intelligence. Not long ago, this would have been seen as something straight out of a science fiction movie, but bold predictions are coming true, and gamers are getting the first glimpse of the future of entertainment.

Upland’s Creative Director Jason Festa shared how empowering users is key to introducing AI tools. “As AI technology advances, UGC’s potential is set to amplify dramatically. Tools like Blender and Unreal Editor for Fortnite (UEFN) require technical skills, acting as barriers for the average creator,” says Festa.

“However, integrating AI-driven solutions will reduce this friction, enabling more people to participate in the creative process. With AI-assisted tools, making 2D and 3D content creation more accessible, millions of creators will be empowered to craft their own worlds, assets, and stories, pushing UGC to mainstream adoption,” he adds. 

Understanding the Business of Virtual Entertainment

Earlier this month, Roblox announced that it is building a generative AI model  to give creators the tools to build 3D scenes. This is a clear tactic to drive adoption in the ever-expanding gaming market but also when aiming to onboard older audiences.

However, as these AI-driven virtual spaces expand, the question of ownership becomes increasingly important. Players will increasingly collaborate with online platforms to create entertainment value. 

Digital assets continue to take center stage as our forms of online entertainment evolve. This week, the value of these virtual currencies and how in-game assets are presented are sparking debate. Gaming giants like Epic Games, Electronic Arts, and Roblox are now facing an EU consumer complaint  accusing them of misleading gamers into spending money. 

At the heart of the complaint, filed by the European Consumer Organisation (BEUC) and 22 of its member bodies, is a growing concern about how these companies intentionally design games to push users into making in-game purchases, often with little clarity about the real costs.

Transparency and greater insights into the gaming sector’s development costs should help consumers and studios navigate the next phase of adoption.

While it is essential to protect consumer rights, it is also important to understand the costs involved when producing and maintaining these complex online environments. To give you some idea, in an earnings call in 2022, Roblox’s CFO confirmed  that it had spent over 400 million in infrastructure costs. 

Ownership in the Age of AI-generated Worlds

Decentralized technology is now on the cusp of a new offering here. Removing the high costs associated with server maintenance is one way to alleviate some of the pain felt by gaming publishers.

CTO of Tashi Protocol Ken Anderson spoke with me to share how he has been steadily building a consensus protocol to provide serverless gaming for multi-player games:

“At the core of what we are trying to do is bridge the Web2 and Web3 gaming worlds. This new consensus engine ensures there’s no central authority to manipulate outcomes. To really succeed, new AI-driven virtual worlds must offer clear ownership frameworks. Consumers want more control,  more transparency, and  seamless experiences that maintain the fun of gaming.”

Moreover, as more players become familiar with the decentralized applications and in-game economies, game publishers can evolve to experiment with new methods of generating revenue.  

Future of Virtual Co-creation Spaces

Let’s examine why owning and verifying our digital assets will be key, as more AI infiltrates our creator economies. In the physical world, ownership of assets like land, art, and intellectual property is well-established and legally protected. However, as we move into digital spaces where AI can generate everything from clothing to entire cities, the lines of ownership become more complex and, arguably, more important.

The value of digital assets will rise as they become more intertwined with our real daily lives. Virtual real estate, digital fashion, and unique in-game items will be collectibles and part of our digital identity.

A great example of this is the ability to build properties in virtual spaces that reflect your physical identity. In Upland, which has been described as a grown-up virtual environment, players trade properties, buy assets, build communities, and engage socially. To stay true to the ethos of Web3, Upland metaverse gives users true ownership of their digital assets through non-fungible tokens (NFTs), which are stored on the blockchain.

This ensures that users have full control over their properties and can sell or trade them as they see fit.

“In Upland, creators have evolved into key designers of the platform, actively shaping the in-game universe. They design structures, ornaments, map assets, wearables, transportation, and even immersive experiences that shape the virtual landscape. This transition mirrors broader market trends, where creators are becoming the new developers, not by building apps or games, but by generating highly engaging content that drives user interaction and creativity,” says Festa.

Upland’s approach offers a glimpse into the future of virtual co-creation spaces. As more platforms adopt blockchain technology to secure digital assets, we will likely see a shift toward a more mature, ownership-driven model of virtual interaction.

In the future, players and especially creators will want to assert ownership over their creations, whether they were crafted by hand or generated by AI. They will expect these assets to hold value across different platforms and ecosystems. Industry leaders need to tackle interoperability, ensuring that the benefits are shared, and manage the risks when it comes to collaboration between these virtual platforms and the users who are helping them scale. 

Virtual items and currencies are becoming critical components of our virtual entertainment ecosystems. With complaints targeting major players like Microsoft’s Activision Blizzard and Ubisoft, the pressure on gaming companies to maintain ethical standards while thriving in this new digital economy is rising. To do this, they must think outside of existing business models and carefully navigate the co-creation landscape to provide more transparency for all users.

Roblox may have the dominant brand, user base, and tools to explore the synergies between players and UGC, but Web3 holds the key to ownership, longevity, and putting the players at the heart of the technology.