Little is known about how Princess Silver would have fit into the Mario series. She was meant to be the icy princess that rules over a snowy kingdom, with a court of that one snowman enemy, Mr. Blizzard. She was relatively isolated, even in the story. She had ice abilities, and the power to use her scepter to form real levels out of snow, and ice. It's likely she would have at least had some place in the tertiary cast that'd end up in spinoff games.Â
An odd side effect of the accident that made Princess Silver the way she is now is that all art current art of her at the time was changed to reflect how she ended up. Her relatively normal skin tone became a indigo color, and other odd changes. To the right is some render art, and concept art for Princess Silver, most provided by a source who had worked with the project closely.
In game, Princess Silver was intended to act as a guide, a friendly face, provide help with stage creation, race the player through stages, and more. She would build levels with her scepter.
How it's even possible for a human mind to become this kind of AI is beyond me, but she used to be Silvia Graye, one of the team members of the project, atleast somewhat. It's hard to say how much of her really is Silvia, though.