When Noah received the email from his boss, a wave of anxiety hit him. It was spring 2023, and the message was about how artificial intelligence was “top of mind” at his company. Systems were being tested, and they held a lot of promise, according to the chief technology officer.
Executives at the video game company saw excitement and potential, but many game artists, writers, and designers saw a threat to their jobs. Noah was grief-stricken. “I felt that we were throwing away our humanity,” he said. Then the layoffs began.
In 2023 alone, around 10,500 people in the industry were laid off. This year, that number is believed to have reached 11,000. Companies like Microsoft and Activision Blizzard began axing jobs while pushing forward with AI systems from OpenAI and others.
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Generative AI is making its mark, especially in an industry that’s bigger than Hollywood but mostly nonunion. A Game Developers Conference survey found almost half of respondents used AI at work, with many worried about its ethical implications.
“It’s here. It’s definitely here, right now,” says Violet, a veteran game developer. The rise of AI is transforming jobs, sometimes in less obvious ways. Managers use AI to cut corners, boost productivity, and make up for lost staff. It’s not always about replacing entire departments; sometimes it’s about doing more with fewer people.
Molly Warner, an environment artist, described widespread anxiety among colleagues regarding AI. In May 2023, Activision Blizzard’s CEO addressed AI’s impact on the industry, noting the relationship between AI and games like Warcraft and Chess. The sentiment was mixed, both hopeful and cautious.
By mid-year, Activision approved the use of AI tools for concept art and marketing materials. Despite some assurances that AI was for internal use only, the reality seemed different. “I think we all didn’t talk about it much for fear of losing our jobs,” Noah says. Yet, by year-end, AI-generated content appeared for sale, and more layoffs followed.
Some industry veterans are particularly worried, fearing AI will degrade creative jobs. Violet highlighted how cheaper AI-generated art is deemed “good enough” by some managers. This cost-cutting mindset puts concept artists, graphic designers, and illustrators at risk.
Certain tasks, like 3D animation and programming, remain challenging for AI, which provides some relief. However, many fear it’s just a matter of time before these too are affected. A consulting firm found that generative AI might soon take over more than half of game development tasks.
Some studios resist AI, while others embrace it. For example, Riot Games assured employees of their value but still laid off staff. The murky use of AI raises questions about copyright, security, and the future of creative work — topics increasingly dividing the industry.
The gaming world is realising the need for unions, influenced by AI’s rise. Union efforts might lead to better worker protections and consent on AI usage, similar to those secured by Hollywood’s writers. Right now, though, games workers have little say over AI deployment.
Interestingly, some companies investing heavily in AI find it less reliable than expected. Even if AI can generate content quickly, it often lacks the quality that only human creativity can provide. For now, cost-cutting may overshadow quality concerns, but this could change as workers push back.
Artists and designers haven’t welcomed AI with open arms; it’s mostly been forced upon them. As AI continues to transform the gaming industry, companies and workers are in a delicate dance, trying to balance progress and job security.
Ultimately, the extent to which AI will disrupt the gaming industry depends on how much the creators and workers push back and demand control over its implementation. “AI isn’t bad in and of itself,” says Violet. It’s bad when used solely to maximise profits at the cost of jobs.
