Microsoft is integrating a virtual AI chatbot into Xbox customer support to answer questions and potentially process refunds.

The AI integration is part of a larger initiative, which includes AI features in Bing, Office, and new keyboard designs with an AI Copilot button.

The company is exploring further AI uses such as voice-enabled form filling and summarization of information.

Microsoft's AI chatbot for Xbox is currently in a testing phase and the company is planning future console and service upgrades.

The AI enhancements are seen as a strategy to distinguish Xbox in a competitive market with upcoming products like Sony's PlayStation 5 Pro and AI improvements in Apple's iPhone.

Details about the chatbot's authority in tasks like processing refunds, in comparison to human support, remain unclear.