2025 was the year that generative AI made its presence felt in the video game industry. Its use has been found in some of this year's most popular games, and CEOs of some of the biggest game studios claim it's implemented everywhere in the industry, including in their own development processes. Meanwhile, developers in general, and especially those in the indie games space, are resisting infringement by coming up with ways to mark their games as Gen-AI free.
Generative AI has largely replaced NFTs as the hot trend pursued by publishers. Proponents argue that the technology will be a major democratizing force in video game development, as gen AI's ability to fuse images, text, audio, and video could shorten development times, reduce budgets, and improve two major problems currently plaguing the industry. In response to this idea, many video game studios have announced partnerships with Gen-AI companies.
Ubisoft has a technology that can generate short snippets of dialogue called barks, and there are NPCs powered by GEN-AI that players can talk to. EA partners with Stability AI and Microsoft uses AI to analyze and generate gameplay. Beyond official partnerships, major gaming companies such as Nexon, Krafton, and Square Enix have vocally embraced Generation AI.
As a result, Gen AI is starting to come into gaming in a big way. Up until this point, Gen AI in games has mostly been relegated to prototypes or small, low-quality games that typically get lost among the tens of thousands of titles released each year on Steam. But now, artificial AI is appearing in the year's biggest releases. ARC Raidersone of this year's big hit multiplayer shooters, used Gen AI for character interaction. Call of Duty: Black Ops 7 I used the gen-AI image. In 2025 TGA Game of the Year, Claire Obscur: Expedition 33, gen-AI images were featured before being quietly removed.
Reactions from both players and developers to this breach have been mixed. In general, players don't seem to like the presence of generative AI in games. When a gen-AI asset is discovered Anno 117: Pax Romanathe game's developer Ubisoft claimed that the assets had “surpassed review” and were subsequently replaced. When gen-AI assets are found black ops 7However, Activision acknowledged the issue, but the image remained in the game. Critical reactions are also biased. ARC Raiders received a low score, with reviewers specifically citing the use of gen AI as the reason. claire obscuraHowever, almost universally praised, there is little mention of the use of generational AI, even if only temporarily.
Developers seem sensitive to the general aversion to generational AI, but reluctant to commit to not using it. After the gen-AI assets were discovered, black ops 7Activision said it is using the technology to “empower” developers rather than replace them. When asked about the emergence of AI. battlefield 6EA VP Rebecka Coutaz called the technology fascinating, but was adamant that it won't appear in the final product. CEO Swen Wincke baldur's gate 3 Developer Larian said Gen AI will be used for the studio's next game divinity However, it is only for generating concepts and ideas. He claimed that all completed games would be created by humans. He also hinted at why game makers persist in using the technology, despite the backlash developers typically receive whenever they are discovered.
“This is a technology-driven industry, so try different things,” he said. bloomberg Interview with reporter Jason Schreier. “You can't afford not to try something, because if someone finds a golden egg and you don't use it, you die.”
Comments from other CEOs support Vincke's claims. Lee Jung Hoon CEO arc raider“It's important to assume that all gaming companies are using AI now,” Nexon's parent company Nexon said in an interview.
But the problem is that generational AI still doesn't seem to be the golden egg its proponents would like people to believe it is. Last year, Keywords Studios, a game development services company, released a report on creating 2D video games using only gen-AI tools. The company argued that while gen-AI tools can streamline some development processes, they ultimately cannot replace the work of human resources. Discovery of Generation AI call of duty and pax romana This was possible only because the images discovered were of low quality. Ubisoft's interactive Gen-AI NPCs make the dialogue they spout sound unnatural and stilted. 2025 Chinese Martial Arts MMORPG Players where the winds meet I am controlling an AI chatbot NPC to interrupt the game. fortnite Players could make an AI-powered Darth Vader swear an oath.
Despite the promise of generational AI, current results have not met expectations. So why is it everywhere?
One reason for this is the competitive advantage that Swen Vincke alluded to in an interview that AI could potentially provide but currently cannot. bloomberg. The other reason is also the simplest. It's the economy, idiot. Despite inflation, weak consumer confidence and spending, and rising unemployment, the stock market remains booming, supported by billions of dollars poured into AI technology. Game makers looking for capital to keep their businesses and profits afloat will want to take note. Announcing AI efforts and promoting the use of AI tools can send a signal to AI-minded investors that a gaming company is worth investing in, even if those tools have a relatively minor impact on the final product.
This may explain why the majority of gen-AI proponents in the gaming industry come from executives at AAA studios, rather than smaller indie groups that almost universally criticize the technology. Indies face the same financial pressures as major studios, but they have far fewer resources to overcome those pressures. Ostensibly, indie developers are the biggest beneficiaries of this technology, but so far they've been its biggest adversaries. They push back against claims that generational AI is ubiquitous and used by everyone, with some even putting anti-AI logos on some games and claiming that their games were made entirely by humans.
For some indie developers, using Gen AI completely defeats the purpose of creating games. The challenge of coming up with ideas and solutions to development problems, something that artificial intelligence automates, is a big part of the appeal of creating games for developers. There are also moral and environmental implications to which indie developers may be particularly sensitive. Gen-AI's output is cobbled together from an existing body of work that was often used without consent or compensation. AI data centers are notorious for consuming energy and polluting surrounding communities, and are increasingly drawing attention to low-income and minority communities.
With unfulfilled promises and shoddy deliverables so far, it's easy to think that Generation AI is the next flash in gaming, similar to NFTs. But until the technology improves or the bubble bursts, as in the case of NFTs, Gen AI will remain a lightning rod in game development, as more and more of the gaming industry's biggest companies are reporting its use.
