This podcast episode explores the transformative impact of AI agents on storytelling, showcasing their ability to enable active participation, natural social interaction, and real-time responsiveness. Through AI agents, characters come to life with their own personalities, interact with each other and the audience, and even incorporate audience ideas. The episode also discusses the emergence of AI-enabled games that focus on social interaction and conversation as core mechanics, and highlights the potential of AI tutors that engage in real-time conversations. Immersive role-playing games and the role of AI agents in bringing characters to life are also explored, emphasizing their ability to extend human creative potential and give audiences agency. Overall, this episode emphasizes how AI agents are reshaping the storytelling experience and empowering the audience to co-create their own narratives.