Video Game Industry Faces AI Disruption Amid Rising Concerns

The emergence of generative artificial intelligence (AI) is reshaping the video game industry, leading to both excitement and anxiety among creators. While AI has the potential to enhance productivity and reduce development costs, concerns about job security and the quality of AI-generated content loom large.

According to Mike Cook, a game designer and computer science lecturer at King’s College London, generative AI is already being utilized in game development in subtle ways. These include tasks like dubbing, illustrations, and coding assistance. Cook noted that while these applications may not be noticeable to players, their presence is growing. A study from the American startup Totally Human Media revealed that nearly 20 percent of titles released this year on the Steam platform acknowledged the use of generative AI in their development. This translates to several thousand games, including popular franchises like Call of Duty: Black Ops 6 and the life simulation game Inzoi.

The technology’s rapid advancement allows studios to streamline processes, merging multiple roles into one. Davy Chadwick, an AI consultant, foresees a productivity boost of 30 to 40 percent as developers embrace these tools. The latest AI platforms can generate 3D assets from simple text prompts, drastically reducing the time and cost involved. Ethan Hu, founder of the California-based startup Meshy.ai, explained that producing a high-quality 3D model has shifted from taking two weeks and $1,000 to just one minute and $2.

Balancing Innovation and Job Security

Major players in the gaming industry are approaching generative AI with varying strategies. Electronic Arts has partnered with Stability AI, while Microsoft is developing its own model called “Muse.” With the global gaming market projected to generate nearly $190 billion in revenue by 2025, the stakes are high. Industry professionals, like Tommy Thompson, founder of the “AI and Games” platform, hope that these technologies will enhance productivity and reduce development time.

Yet, there is significant apprehension among workers in a sector that has faced multiple layoffs in recent years. An anonymous employee at a French game studio expressed concerns that while AI is intended to increase productivity, it could ultimately lead to job losses. The developer shared that AI-generated 3D models can often be chaotic and require as much time to refine as it would to create them from scratch.

This unease has prompted major industry players, including Microsoft, EA, Ubisoft, and Quantic Dream, to refrain from discussing their use of AI publicly. Felix Balmonet, co-founder of French 3D asset generation startup Chat3D, argues that AI tools should enhance, not replace, the creative process, allowing artists to focus on higher-level tasks. Balmonet noted that his company is collaborating with “two of the five largest studios in the world.”

Competition and Consumer Backlash

Despite the potential advantages, some industry professionals fear that opting out of AI tools may hinder competitiveness. The head of a French studio, who is opposed to AI models, acknowledged the necessity of considering AI for future projects after completing a recent game without its assistance. Most publishers and investors surveyed indicated that the use of AI did not influence their funding decisions.

The response from gamers can be critical. Piotr Bajraszewski, business development chief at 11 bit Studios in Poland, faced backlash after the studio’s latest game, The Alters, included AI-generated text that was not clearly identified. Although the studio clarified that the text was intended as placeholder content, the incident highlighted the weight that players place on human creativity.

As the industry navigates the challenges and opportunities presented by AI, the balance between innovation and the preservation of artistic integrity will be crucial. The road ahead remains uncertain, but the integration of AI into gaming is poised to redefine the landscape, for better or worse.