The first 'cyber person', that appears to exhibit emotion and responds to voices, has been unveiled at a conference in Oxford.
Milo, a side-project from Microsoft's research into its XBox 360 series, is expected to revolutionise storytelling and computer gaming through the introduction of artificial intelligence, according to creator Peter Molyneaux.
Speaking at the TEDGlobal (Technology, Entertainment, Design) conference today Mr Molyneaux said: “I wanted to create a character which seemed alive, which noticed me, and looked me in the eye and felt real.”
Mr Molyneaux heads Microsoft's European games division and said Milo would be the first computer with the capacity to learn and develop according to its controller.
He used the example of teaching the program to skim stones or fish and said once taught, the skills are remembered.
The Milo character is based around that of a 11-year-old boy who has moved from London to New England in the US.
The principle was unveiled at a computer show last year, but the finished product was displayed for the first time at the TEDGlobal today.
Milo is not available commercially yet although the Kinect system, on which it is based, will be released later this year. The Kinect is worn like a headband that allows the user to play computer games using hand gestures and voice commands.
During the demonstration today, Mr Molyneaux pointed out snails and plants in the virtual garden which Milo then squished.
Mr Molyneaux said the most exciting thing about Milo was that within 40 minutes or so, he will recognise the voice of his controller. He will respond to the timbre of the voice and will remember what has been said to him.
His face will be artificial intelligence driven and will include a blush reflex and flaring nostrils. In theory, Milo will develop according to instructions of his creator meaning no two Milos in the world should be the same.
Mr Molyneaux told the conference that there were still a huge amount of issues to be resolved but that was confident that Milo would soon become a recognisable face in the world.
Also at the event, Australian entrepreneur Tan Le demonstrated a wireless headset that can interpret signals for the brain and allow the user to perform mind over matter.
Ms Le told the conference that they had developed a complex algorithm that is able to interpret the physical signals from the brain and interpret it across whole populations. She demonstrated the device at the TEDGlobal conference today using a former TED speaker Evan Grant, who was able to make a cube on a computer fade in and out and eventually disappear by simply imagining it happening.
Ms Le said the Emotiv headset will only cost hundreds of dollars rather than tens of thousands of dollars and will need no conductive gel or scalp preparation. It will be able to establish a baseline for a human brain within eight seconds.
She told the conference it could be used for all kinds of practical applications from turning on lights or closing curtains - but most importantly for disabled people to be able to manoeuvre their wheelchairs just by using brain power.