Artificial intelligence (AI) has moved from a supporting role to a starring one in the video game industry. It is uniquely reshaping how games are created and played, and would do so fundamentally once AI reaches a point of singularity.
Major studios like Ubisoft and mobile giant King are leveraging AI to accelerate production, streamline workflows, and create more immersive experiences. Meanwhile indie developers are using it to push creative boundaries and build “AI-native” games. This seismic shift promises faster, more complex, and more dynamic games for players, but it comes with challenges, including high costs, technical hurdles, and ethical concerns.
How Will AI Makes Games That Look Unique
AI’s influence in the gaming world extends far beyond automated enemy behavior. According to a 2025 report from the Game Developer Conference, over half of surveyed developers are already using generative AI tools in their workflows.
Till now, AI has acted as a “co-pilot” for developers, handling time-consuming tasks to free up creative talent. At Ubisoft, a 3D creation tool called FaceShifter uses AI to generate realistic character models, cutting down a task that could take a week into a matter of hours.
For mobile studios like King, AI helps test and balance thousands of game levels, accelerating live operations and updates. Not only that, it is also enabling developers to craft more realistic and reactive game environments. In Assassin’s Creed Shadows, for example, AI was used to create detailed heads for secondary characters, enhancing the overall believability of the game world.
Some developers are building games from the ground up around AI. Jam and Tea Studios created the “AI-native” game Retail Mage in just five months by leveraging large language models (LLMs) to power dynamic, English-based interactions with NPCs, drastically speeding up their iteration process.
AI Experimental Take Over Might Come With Caveats
Despite the clear benefits, implementing AI at the heart of game development is not without its issues. For smaller studios in particular, the high cost of cloud computing and graphics processing units needed to run large AI models is a major barrier.
“We nearly didn’t do ‘Retail Mage’ because we thought it was too expensive to run,” said Aaron Farr, co-founder and CTO of Jam and Tea Studios.
For larger companies, the experimental nature of the tech means that fully dynamic, AI-powered gameplay features are still in their infancy, with studios wary of potential “hallucinations” or bugs in the generative systems.
Navigating Ethical Consequences
As AI’s role in game creation expands, so does the conversation around its responsible use. Developers are grappling with how to balance efficiency with creative integrity and human involvement.
Video game actors and other creative professionals are concerned about the use of “digital replicas” and the potential for their performances to be used without fair compensation. Developers are working to establish best practices, emphasizing human oversight, transparency about AI usage, and ensuring that AI-powered features are fun and meaningful, not just expensive novelties.
If handled ethically and collaboratively, AI has the power to unlock new levels of creativity and create games that respond to players more than ever before. However, as Farr noted, “The first risk is not engaging in the conversation.”