Niantic announced the introduction of generative AI technology in Peridot, allowing the mobile camera to capture real objects, making virtual pets more lifelike. The algorithm transforms objects into vocabulary that can be parsed by a language model, enabling personalized responses, with each pet having personalities similar to Pokémon. The AI technology brings richer animation resources, enhancing the gaming experience. Niantic emphasizes the pursuit of realism while avoiding making pets too realistic to prevent negatively impacting player experience.