Non-cognitive skills are crucial for personal and social life well-being, and such skill development can be supported by narrative-based (e.g., storytelling) technologies. While generative AI enables interactive and role-playing storytelling, little is known about how users engage with and perceive the use of AI in social life simulation for non-cognitive skills learning. To this end, we introduced SimuLife++, an interactive platform enabled by a large language model (LLM). The system allows users to act as protagonists, creating stories with one or multiple AI-based characters in diverse social scenarios. In particular, we expanded the Human-AI interaction to a Human-AI-AI collaboration by including a sage agent, who acts as a bystander to provide users with more insightful perspectives on their choices and conversations. Through a within-subject user study, we found that the inclusion of the sage agent significantly enhanced narrative immersion, according to the narrative transportation scale, leading to more messages, particularly in group chats. Participants' interactions with the sage agent were also associated with significantly higher scores in their perceived motivation, self-perceptions, and resilience and coping, indicating positive impacts on non-cognitive skills reflection. Participants' interview results further explained the sage agent's aid in decision-making, solving ethical dilemmas, and problem-solving; on the other hand, they suggested improvements in user control and balanced responses from multiple characters. We provide design implications on the application of generative AI in narrative solutions for non-cognitive skill development in broader social contexts.

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