The Rising Use of AI in Video Games

Generative AI has provided the gaming industry a rare chance to increase output while keeping costs low, but will the switch to AI hurt the experience?

(Credit: Getty Images)

Over the past couple of years, AI, specifically generative AI has been a buzzword for every fortune 500 company to throw around. Many companies have promised investors that they will include AI in their products and processes leading to higher returns on investment and a better experience for customers. The gaming industry has not neglected this trend with major players such as Ubisoft, Epic Games, Microsoft and Electronic Arts embracing the "exciting future" that generative AI promised to bring.

Some developers have expressed caution when using AI. Take Two has said that using AI “presents social and ethical issues that may result in legal and reputational harm and liability" as well as many indie studios and solo developers suggesting that the ability for large AAA developers to use complicated in-house AI models gives them an unfair advantage especially when a large amount of the date used to train these models comes from smaller creators.

In 2024, Ubisoft (developer of Assassin's Creed, Just Dance and Far Cry) unveiled their new generative AI prototype promising a revolution in how players interact with non playable characters (NPCs).

"Have you ever dreamed of having a real conversation with an NPC in a video game? Not just one gated within a dialogue tree of pre-determined answers, but an actual conversation, conducted through spontaneous action and reaction?" - Ubisoft

The prototype version shown is able to dynamically react to the players actions and statements and respond in a way which is natural, human but still in character. Ubisoft say that this system doesn't get rid of the human creative with the AI still requiring details about the character themselves and how they would speak, react and think in different situations.

An example of a generated response during a non-game demo of Ubisoft's generative AI prototype (Credit: Ubisoft)

Ubisoft say that this development will make their games more dynamic and engaging for players with every action taken or word spoken by the player having a more meaningful impact on the dialogue of NPCs. Whilst Ubisoft have shown off these features in a closed demo to press they have not confirmed when or where they will launch this technology in one of their titles.

Ubisoft isn't the only company to utilise advancements in AI in their products with the game engine Unreal Engine (developed by Fortnite developer Epic Games) featuring advanced AI NPCs which can go 'off-script' and change how they respond to the player based on multiple factors. Inworld Origins is a short demo game developed by Inworld AI using Unreal Engine which acted as a public demo of how this technology could be used in a real game. The reviews note how novel and impressive it is to have full conversations with NPCs with many seeing how far they can distract the characters from their original prompt however, there is an overall feeling that generative AI characters seem 'gimmicky' with them being cool and impressive in a barebones tech demo but probably not so needed in a fully released AAA title. Many also note the requirement to have an internet connection when playing as the AI models used cannot be stored locally on the player's console or PC. This not only limits where you can play but also brings up concerns with privacy as user's data, including voice data, is potentially sent to servers in different countries where privacy and user data laws are more relaxed.

AI is not just being used in video games however, it is also being used more and more in the development process of video games. Many studios have already adopted AI infused productivity tools such as Monday or Slack to increase efficiency within their development teams however some have gone further with their use of AI. According to a recent poll by a16z, 87% of game studios are using generative AI tools like Midjourney to create in-game environments both to be used as inspiration or mockups as well as within released games. After months of criticism from fans, Activision admitted they used generative AI to create some images in Call Of Duty: Black Ops 6 with many noticing because the character in the image had six fingers. Fortnite also ruffled feathers with their inclusion of an AI recreation of the late James Earl Jones' voice for their playable Darth Vader character with actors' union SAG-AFTRA filing a complaint.

"We must protect our right to bargain terms and conditions around uses of voice that replace the work of our members, including those who previously did the work of matching Darth Vader's iconic rhythm and tone in video games," - Sag-Aftra

AI has led to major fears for many in the video game industry with some developers, artists and designers worrying that the growing use of generative AI could make them obsolete. Financial pressures continue to haunt studios with the industry in general experiencing a slump in sales and a dramatic rise in costs. Recent reports place the cost of a AAA game between $200 and $300 million with some games approaching the $1 billion mark. For many of the largest studios the switch from human creatives to AI is nothing but a key financial decision to keep them alive. It is also especially important for companies to appear on the cutting edge of video game development and so diving head first into AI makes sure stock prices are kept stable and a reputation of innovation is upheld.

AI will change video games in a significant way in the next decade. From AI NPCs leading to more immersive and unique gameplay to AI generated images slowly creeping into more titles to save costs it is still not clear if AI will make gaming better or worse. However, for many people such as the programmers, artists, designers, voice actors and sound designers, the switch to generative AI could lead to a change in their lives as their careers and passions are replaced with complicated algorithms as major studios try and cut costs.