Reflecting on the Games Industry's Turbulent Year with AI

The games industry in 2025 was dominated by headlines about AI, with its impact felt across every aspect of the tech sector. Unlike previous trends such as NFTs and the metaverse, AI has become deeply entrenched and shows no signs of slowing down. According to Sam Altman, ChatGPT now boasts 800 million weekly active users, and AI has quickly become a staple in internet search algorithms and various other applications, including toys, albeit with mixed results. The technology has sparked intense debate within the games industry, with proponents highlighting its potential to streamline processes, improve efficiency, and foster new ideas. However, critics raise concerns about ethical implications, massive energy consumption, job security, particularly in QA and art departments, and the potential threat to the craft of game development itself. Throughout the year, GamesIndustry.biz's contributing editor Rob Fahey provided insightful commentary on AI, discussing legal battles over AI copyright, the potential to accelerate development, the impact of AI and economics on hiring, and how AI-generated assets can devalue premium games. In 2025, numerous companies showcased their AI-enabled products, including Atelico's AI Engine, which promised to enable new interactive experiences, and Uthana's $4.3 million investment to revolutionize 3D character animation using generative AI. Several major games companies, including Roblox and Krafton, publicly endorsed AI, with the latter repositioning itself as an AI-first company. However, not all companies are on board, with Neon Giant's co-founder stating that they pride themselves on their traditional game development approach. The use of AI in game development has been a topic of discussion, with some companies, like Epic Games, embracing the technology, while others, like Nintendo, have been more cautious. The introduction of AI-voiced characters, such as Darth Vader in Fortnite, has also sparked controversy, with the US actors' union SAG-AFTRA filing an unfair labor practice charge. The debate surrounding AI extends beyond the games industry, with some experts warning about the potential risks and consequences of relying too heavily on the technology. As the industry moves into 2026, it is clear that public perception of AI remains largely negative, with many gamers expressing concerns about the impact of AI on game development and the potential for job losses. Despite this, many game companies remain committed to exploring the potential of AI, and it will be interesting to see how the technology continues to evolve and shape the industry in the years to come.