As the games industry has been riddled with layoffs and studio closures in recent years, another shadow emerged in 2025: generative AI, which made its way into the game development pipeline.
Last March, I attended the Game Developers Conference in San Francisco, California, dashing between the wings of the Moscone Center to hear how the games industry was incorporating generative AI. The technology could be applied to generate code, text or images, yet there was no seeming consensus on what it should be used for. From panels of cautiously optimistic executives to roundtables of freelance developers concerned with securing steady employment, the conference was flooded with a range of views on AI, despite the limited evidence of its use in game development.
By the end of 2025, the issue spiked, grabbing the attention of gamers everywhere, as developers open up about the ways they've used generative AI to make games -- which, as far as we know, has still been minimal. On social media, numerous unfounded accusations have been made against games for using AI-generated art and text. The technology has become a bogeyman for gamers.
When actual proof of AI in a game is revealed, the consequences can be serious. After it came to light that AI-made placeholder assets were included in the launch of JRPG Clair Obscur: Expedition 33 (even though they were swiftly patched out), the Indie Game Awards rescinded two awards for the much-lauded game. And when Swen Vincke, founder and game director of Larian Studios (Baldur's Gate 3), announced that generative AI was being used to create concept art and placeholder text for its next game, it sparked backlash, according to the video game news and reviews site IGN.
What's changed? Awareness, certainly. Throughout the year, AI has been like background radiation, bumming out gamers in other aspects of their lives, spreading through software, exacerbating climate issues, increasing misinformation with falsified images and spiking PC RAM prices. It makes sense that gamers would be suspicious of the use of generative AI in the games they play, especially given its dubious training on datasets and art, often done without the consent of creators.
Lack of transparency is also sparking concern. Companies aren't disclosing the amount, if any, of generative AI used. It's common practice for studios to stay quiet during game development, sometimes releasing snippets of behind-the-scenes footage on social media or YouTube to build hype. But opacity only intensifies the furor among fans if news about the use of generative AI then becomes public. Besides, there isn't an agreed-upon standard on where to use generative AI, how much is appropriate and whether game-makers are obliged to disclose when they've used it.
At GDC 2025, games executives gathered on a panel to discuss the future of generative AI in the industry. David Lumb/CNET
How gen AI's promises pitted players against studios
GDC, an annual conference that has been running since 1988, has long been a hub for discussions and sessions on AI. In the past, you'd mostly hear about topics such as computer-controlled character behavior and the use of machine learning. Some of that remains, but much of AI's presence at GDC has moved on to generative AI.
Despite the skepticism surrounding the technology, I've seen ideas for what it could offer players in the future. GDC 2024 was brimming with possibilities for generative AI in gaming, and GDC 2025 took it to the next level, demonstrating prototype technology to attendees. From the moment the doors opened at the Moscone Center, it was all about promoting the current and near-future applications of generative AI in both game production and tools for players.
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