Microsoft is introducing its first major AI feature for Xbox, and it's... a chatbot. The animated virtual assistant will primarily handle online support queries, but insiders reveal that this is just the beginning of a larger, more cautious effort by the company to incorporate AI into Xbox.

While Microsoft CEO Satya Nadella has steered the company towards an AI-driven future, Xbox has remained a notable exception in the spotlight of AI innovations. Although the company has been using AI to moderate its Xbox platform for years, there’s been little rush to integrate AI features like Copilot into the Xbox dashboard, in contrast to the speed with which they’ve been incorporated into Windows and Office. Microsoft is taking a measured approach, fully aware of the skepticism around AI from gamers and creatives, and it wants to make sure it gets this integration right.

In addition to the Xbox chatbot, Microsoft is also planning a major update for its Xbox dashboard, bringing in AI-powered natural language search. This new search feature, which has quietly appeared in Xbox support documentation, will allow users to search more intuitively—for example, typing “puzzle games for kids” will bring up relevant results, rather than requiring the exact title of the game. The update has already begun rolling out and will become widely available in the coming weeks. It will also be capable of handling misspellings and abbreviations, making it far easier for Xbox users to find and download the games they want to play.

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