https://techcrunch.com/2022/09/15/latitude-brings-ai-generated-artwork-to-ai-dungeon/

AI Dungeon realized the dream many gamers have had since the ’80s: an evolving storyline that players themselves create and direct. Now, it’s going further with a new feature that enables players to generate images that illustrate those stories.

Developed by indie game studio Latitude, which was initially a one-person operation, AI Dungeon writes dialogue and scene descriptions using one of several text-generating AI models — allowing players to respond to events how they choose (within reason). It remains a work in progress, but with the emergence of image-generating systems like Stability AI’s Stable Diffusion, Latitude is investing in new ways to liven up players’ narratives.