2025 was a pivotal year for generative AI in the video game industry. Its presence became evident in many of the year’s top games, with CEOs from major studios claiming it’s being integrated into their development processes. However, many indie developers are pushing back, making a point to highlight that their games are free from generative AI.
Generative AI has quickly replaced NFTs as the hot topic in gaming. Advocates argue that this technology can democratize game development by combining images, text, audio, and video, potentially reducing both development times and budgets—two pressing issues in the industry today. In line with this vision, several game studios have announced partnerships with generative AI firms. For example, Ubisoft has this technology for generating short dialogue snippets known as “barks” and AI-powered NPCs that players can chat with. EA teamed up with Stability AI, while Microsoft is utilizing AI for gameplay analysis and generation. Other significant players like Nexon, Krafton, and Square Enix are also openly embracing generative AI.
As a result, generative AI is increasingly appearing in major game releases. Previously, its use had been limited to fringe cases—usually prototypes or low-quality games that got lost among the tens of thousands of titles launched on platforms like Steam. Now, however, generative AI has made its way into breakout hits like ARC Raiders, which utilized generative AI for character dialogue, and Call of Duty: Black Ops 7, which features AI-generated images. Even the 2025 TGA Game of the Year, Clair Obscur: Expedition 33, included generative AI images—though they were later removed.
Player and developer reactions to this trend have been mixed. Generally, players seem to prefer fewer generative AI elements in games. After generative AI assets were discovered in Anno 117: Pax Romana, Ubisoft stated these assets “slipped through” the review process and were replaced. In contrast, when generative AI assets were found in Black Ops 7, Activision acknowledged them but chose to keep the images in the game. The critical response has varied; ARC Raiders received poor reviews, with many citing generative AI as a drawback, while Clair Obscur was largely praised, with its temporary use of generative AI barely mentioned.
Developers appear aware of the public’s aversion to generative AI, yet many are reluctant to abandon it altogether. Following the discovery of generative AI assets in Black Ops 7, Activision clarified that it aims to “empower” developers with the technology rather than replace them. EA’s VP Rebecka Coutaz referred to the technology as alluring but confirmed it wouldn’t be included in Battlefield 6. Swen Vincke, CEO of Larian Studios, which developed Baldur’s Gate 3, mentioned that generative AI is being considered for concept generation in future projects, but he emphasized that the final product will be crafted by humans. He hinted at the pressure game studios feel to experiment with new technology, stating, “This is a tech-driven industry, so you try stuff. You can’t afford not to try things because if somebody finds the golden egg and you’re not using it, you’re dead.”
Comments from other industry leaders echo this belief. Junghun Lee, CEO of Nexon, noted that “It’s important to assume that every game company is now using AI.”
However, generative AI has not yet proven to be the transformative force its advocates claim. A report from Keywords Studios last year assessed the feasibility of creating a 2D game using solely generative AI tools, concluding that while these tools could improve some processes, they can’t replace human talent. The issues with AI assets in games like Call of Duty and Pax Romana were largely due to their low quality. While Ubisoft’s interactive generative AI NPCs can generate conversation, the dialogue often feels unnatural. Players in the 2025 Chinese martial arts MMORPG Where Winds Meet even found ways to exploit its AI chatbot NPCs, similar to how Fortnite users manipulated AI-powered characters.
Despite lofty promises, generative AI’s current performance doesn’t meet the hype. So why is it so prevalent? One potential reason could be the competitive edge it might offer—despite not yet delivering on that promise. But the more straightforward reason is economic. Even amid inflation, declining consumer confidence, and rising unemployment, the stock market is thriving, bolstered by the influx of investment in AI technology. Game developers looking for funding may see promoting AI initiatives as a way to attract AI-focused investors, even if the technology’s impact on their final products is minimal.
This may explain why enthusiasm for generative AI is largely coming from the upper echelons of AAA studios rather than smaller indie developers, who typically oppositely view the tech. Indie developers are under similar economic pressures as larger studios but often have fewer resources, making them more hostile to generative AI. While indie developers could theoretically benefit from the technology, they often take a stand against it, some even marking their games as anti-AI to highlight their human-made creations.
For many indie developers, integrating generative AI undermines the essence of game development. The challenge of devising original ideas and solving development challenges—the very things generative AI is seen as simplifying—are what make game creation appealing to them. There are also moral and environmental concerns that indie developers are especially aware of. Generative AI outputs are often drawn from existing works, many of which were created without consent or compensation. Additionally, AI data centers are known for their high energy consumption and environmental impact, often affecting low-income and minority neighborhoods disproportionately.
With its unfulfilled promises and subpar outputs, generative AI might be perceived as another fleeting trend, much like NFTs. However, as major gaming companies continue to report its use, generative AI is likely to remain a contentious topic in game development—at least until the technology improves or, like NFTs, the hype fades.
