An AI avatar refers to a virtual character or entity powered by artificial intelligence (AI) algorithms that interacts with users within a digital environment. In platforms like Arcane Mirage, AI avatars are used to enhance user engagement, provide personalized assistance, and simulate human-like interactions through natural language processing (NLP), machine learning, and gesture recognition. AI avatars can perform tasks such as answering questions, offering recommendations, and guiding users through simulations or virtual experiences. By integrating AI avatars with Unreal Engine's real-time rendering and animation capabilities, developers can create lifelike, interactive characters that enhance immersion, facilitate learning, and improve user interactions in educational, training, and customer support applications.