This week, we discuss a hot topic in gaming and where we see the industry in early 2026.
My Take on Using AI
In simple terms, I stand on both sides. AI has become part of the industry, and the industry we have already been using it in countless areas without even realizing it.
If we narrow the focus to gaming, AI is becoming even more deeply integrated. From QA and customer support to asset creation, marketing banners, videos, and even full game development, AI tools are now everywhere. They are powerful, efficient, and often catch things that the human eye might miss.
But there is a trade-off. AI-generated work can lose some of the human essence—creativity, emotion, and the unique perspective that comes from lived experience. And no matter how advanced the model is, sometimes the results simply don’t match what a human mind can imagine.
That’s why we still need human professionals—not only to create and interpret ideas, but to guide, refine, and verify what AI produces. AI is an amazing tool, but it works best alongside people, not instead of them.
—Justin J., – Asst. Project Manager
AI in the gaming industry
When Larion Studios announced their next project, “Divinity”, I was beyond ecstatic. I fell in love with Baldur’s Gate 3, and I could not wait to play their next title. Just before the year ended, Larion Studios’ CEO interviewed with Bloomberg and said that the studio is experimenting with AI tools for the production of Divinity. Instead of creating more anticipation for Larion’s next title, it shifts the discussion to concerns of AI usage in the gaming industry. The discussion was so heated that Larion reversed the decision in their Reddit AMA. This is not just a one-off; Clair Obscur: Expedition 33 got disqualified for AI usage from the Indie Game Awards after winning their game of the year. This topic is not going away anytime soon in the gaming industry, but it begs the question of how the gaming companies should approach the usage of AI.
There is a current trend in mobile game marketing that highlights how developers tone down or completely remove annoying mechanics that are often stigmatized in mobile games, such as forced ads, paywalls, and gacha systems. Would players appreciate a similar approach if the studio clearly stated that their game is “AI-free,” or what about if the studios and developers were upfront about the type of AI they used? It could be something similar to Steam’s disclosure system, which highlights the type of AI that was used in the game. Should Steam and other gaming platforms allow users to filter games that include AI content so they can decide for themselves?
AI may be an inevitable tool in modern gaming development, but at the very least, being honest and transparent to the players who helped make gaming what it is (for better or for worse) may help them make informed choices about the games they want to support.
—Andrew S., Asst. Producer
Here’s the good thing about this topic: it’s broad and controversial.
That’s actually a good thing. It means we’re talking, figuring out where AI fits and where we want the gaming industry to go.
The danger? Letting fear and ignorance dominate the conversation. That’s true in gaming, and honestly, it’s true everywhere. When companies aren’t transparent about their AI use, it feeds that fear. People don’t trust AI in games because it feels like another step away from human creativity. Find out a game you love used AI without telling you? That distrust deepens. It’s disappointing if you’re against AI, sure, but I think it hurts more when companies just aren’t open about their practices in the first place.
And this lack of transparency is playing out against a backdrop of exploding costs.
Look at what we’re dealing with:
ESTIMATED GAME BUDGETS
Grand Theft Auto V (2013) – $137M
Star Wars: The Old Republic (2011) – $200M
Horizon Forbidden West (2022) – $212M
Last of Us Part II (2020) – $220M
These budgets have ballooned. In some cases, they now surpass what big-budget films cost. High budgets are no guarantee of success, either. It’s easy to see why companies are hunting for cost savings. We all know it’s not necessary to spend hundreds of millions to make a fun, rewarding game. Mobile games prove that every day.
But gamers expect more, even though game quality is already unbelievable. The consequence? Higher retail prices. I also think it’s inevitable that companies will keep cutting costs to please investors. Gamers don’t want mass layoffs, but as budgets and expectations inflate, the cost cutting has to come from somewhere.
This is where AI enters, whether gamers are ready or not. One trend we’re seeing, especially across the Pacific, is high AI usage in game production. It lets small teams scale and iterate quickly. The software industry has already been reshaped by AI coding, and that’s only going to accelerate as models get smarter. Games are a mixture of art, music, design, and software. AI is going to touch all of it, especially as companies look to rein in those ballooning costs.
For now, gaming companies are admitting to AI use, mostly for productivity: Ubisoft’s Ghostwriter for NPC dialogue, Unity’s Muse tools, Roblox’s generative textures. These are examples of companies being at least somewhat transparent, testing the waters with specific applications. But how long until AI becomes ready and accepted for full production? Not just for novelty or dialogue support like in inZOI, but woven into every layer of production the way we’re already seeing in China’s WeChat HTML5 game space?
Policymakers are watching. They’re just starting to draft AI legislation, which will essentially give companies permission slips to use AI more openly and at larger scale. But how AI will actually be used, how much it’ll reshape gaming, hiring, and whether companies will be honest about it? Still a mystery.
—Mace T., Project Manager
Thank you for spending your time with us while we think about this fast-changing and wide-reaching topic.
See you next week! Have a great weekend!
