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Generative AI models that can create ultra-realistic characters and virtual worlds have the potential to make future video games more affordable and of higher quality. However, this emerging technology is causing concern among artists and developers.
Currently, AI is integrated into the gaming industry more often than many realize, mainly in small-scale ways such as voice dubbing, artwork, or coding assistance, explained Mike Cook, a game designer and computer science lecturer at King’s College London. These AI applications rarely stand out to players once the game is finished.
A study by American startup Totally Human Media revealed that nearly 20% of new titles released this year on Steam disclosed the use of generative AI during development. This suggests thousands of recent game releases, including popular titles like “Call of Duty: Black Ops 6” and the life simulation “Inzoi,” have incorporated AI tools.
AI’s advancement could allow studios to consolidate multiple roles into a single task, boosting production efficiency by an estimated 30 to 40%, according to AI consultant Davy Chadwick. The latest tools can now generate 3D assets, such as characters or objects, from simple text descriptions, which can be directly imported into game environments.
Ethan Hu, founder of Meshy.ai in California—which claims over five million users—highlighted that creating high-quality 3D models traditionally took weeks and cost around $1,000. Now, he says, it costs about a minute and just $2.
Major industry players are approaching generative AI differently. Electronic Arts has partnered with Stability AI, while Microsoft is developing its own model called “Muse.” As the world’s largest entertainment industry projected to gross nearly $190 billion in 2025, stakeholders see AI as a way to enhance productivity and cut development costs and timelines.
Nevertheless, there’s significant skepticism and fear among industry workers, especially since layoffs have already shaken the sector. A French game developer, speaking anonymously, expressed concerns that AI tools might lead to job cuts, despite their intended purpose of increasing efficiency. In his experience with AI-driven 3D modeling, the outputs are often chaotic and require as much time to fix as creating models from scratch, making the technology currently a “deal-breaker.”
This apprehension explains why leading companies like Microsoft, EA, Ubisoft, and Quantic Dream have been cautious about openly discussing their AI initiatives. Felix Balmonet of French startup Chat3D noted that rather than replacing artists, AI tools help accelerate the creative process by handling routine tasks, with some of the world’s top studios already collaborating with his company.
Some industry insiders worry that rejecting AI could mean falling behind in a competitive landscape. A French studio head, who is personally opposed to AI, admitted they completed a recent project without using the technology but now questions whether future projects should incorporate it.
Most investors and publishers, however, say AI use isn’t influencing their funding decisions. Piotr Bajraszewski of 11 bit Studios in Poland advised caution, as their latest game, “The Alters,” was criticized for unlabelled AI-generated text, reminding the industry of the importance of transparency. Despite such concerns, AI’s role in game development continues to grow, driven by the expectation that it can streamline workflows and inspire innovation across the industry.
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