Sega Embraces AI for Efficient Game Development, Despite Anticipated Resistance

Japanese gaming powerhouse Sega has announced plans to integrate AI into its game development process, exercising caution in its implementation due to expected pushback. According to the company's investor Q&A session, management intends to leverage AI for project development while being selective in its application, partly because of the significant opposition to AI in creative fields like character design. In response to a query about following the trend of larger game projects, Sega's management stated, "Instead of completely embracing the large-scale development trend, we will also pursue efficiency enhancements, such as utilizing AI." However, they noted that "since AI adoption can encounter strong resistance in creative areas like character creation, we will proceed by carefully evaluating suitable use cases, such as streamlining development processes." The use of AI in game development is a contentious topic, with some industry leaders, like Nexon's CEO, suggesting that AI usage is now an industry standard, while others, such as Embracer Group's CEO, view AI as a powerful tool but emphasize the importance of human authorship. Meanwhile, Sega reported net sales of ¥428.9 billion ($2.79 billion) for the year ending March 30, 2025, representing an 8.5% year-over-year decline.