The gaming industry is facing more obstacles to artificial intelligence use during a project’s development. Recently, Baldur’s Gate studio Larian shared plans about the upcoming Divinity title involving the use of generative AI for the idea process, setting off controversy. Then, a week later, Clair Obscur: Expedition 33 was recently removed from the Indie Awards after a few of their team members admitted to using the technology during development, forgetting to remove it during launch.
Studios like Subnautica’s Krafton are currently scrutinized for heavily utilizing automation to produce their games quickly and avoid paying their employees. As gamers fight to preserve human-made games, the industry itself is quickly evolving to work with artificial intelligence models and pre-made assets. AAA companies and indie developers should consider the pros and cons.
Generative AI Initiative in Game Development
Since 2023, artificial intelligence developers have experimented with multiple uses of their automated learning models. It has quickly become a new standard in the growing job market, including video games. Creative arts university Full Sail has even adapted specialized programs and courses for students. Their bachelor’s program focuses on understanding AI’s three core values: deep learning, human-AI interaction, and computer vision.
The main reason many game studios want to use the technology is to improve production speed and reduce employee costs. On Sept. 25, Japan’s Computer Entertainment Supplier’s Association (CESA) announced that 51% of the nation’s game industry has integrated generative AI for their latest or future titles. US tech institute Capitol Technology University later reported similar results with more than 50% of programmers onboard is of Oct. 23.
Does Using Artificial Intelligence Affect the Developers?
Veteran game developers are experiencing layoffs and mistreatment as more AAA companies were adapting artificial intelligence. The former staff for Subnautica 2 challenged Krafton CEO Chagham Kim in July after accusing him of abandoning Unknown Worlds’ employees for generative AI development. Kim confessed that he followed legal advice from ChatGPT on Nov. 18. He wanted to avoid paying the $250 million bonus, and this also became the key issue behind the sequel’s delay.
However, in recent news, generative AI is testing consumer morale. Larian CEO Swen Vincke shared on X (then Twitter) that the new Divinity game will be using AI tools for the idea process. This quickly backfired as the series’ community suspects the studio will be using automation methods to create the entire game. Vincke worsened the situation through his responses to the allegations.
“It would be irresponsible not toevaluate new technologies,” he told his followers. “However, our processes are always evolving, and where they are not efficient or fail to align with who we are, we will make the changes.”
Expedition 33 previously won nine titles at the 2025 Game Awards. Unfortunately for Sandfall Interactive, their ongoing celebration was cut short when the Indie Awards learned of their minimum generative AI use from Unreal Engine 5 during early development. Their El País June interview revealed this information, despite the developers’ claim that they did not use any generated assets. A few of the assets remained at launch and were later patched out. This broke the ceremony’s guidelines, which hold a zero generative AI policy.
Because of allegations against two companies and one indie developer, people are anxious about who they are supporting in the game industry. And the lack of existing regulations allows all AI users the freedom to automate their creations to life. But understanding a studio’s intention for generated assets needs to be defined.
Using limited automated tools during early development is a great way to help build ideas. The problem is that generative AI’s use could lead to plagiarism of existing media, from writing stories to art design. Their selected programs could influence a developer to misuse them. And so far, many developers who either adapted or are making their first game with the technology have responded negatively to allegations.
Developer Goonswarm is the latest developer to use artificial intelligence in the POSTAL’s bullet hell spin-off, POSTAL: Bullet Paradise. From their trailer to the artwork, the community identified that almost every asset created is generative AI.
The team attempted to justify their actions through denials and fake art streams. Series studio Running with Scissors joined the conversation and said, “We have always been transparent with our community. Our trust in the development team is broken; therefore we’ve killed the project.” POSTAL: Bullet Paradise was canceled on Dec. 3 and severed ties with Goonswarm.
