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[ 2025-12-25 23:19:43 ] | AUTHOR: Tanmay@Fourslash | CATEGORY: TECHNOLOGY

TITLE: Generative AI Divides Gamers and Developers in 2025

// In 2025, generative AI integrated into major video games, drawing praise from executives for efficiency but criticism from players and developers over quality and ethics.

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  • Generative AI featured in major 2025 releases, including Game of the Year Clair Obscur: Expedition 33, where assets were later removed.
  • Companies like Ubisoft, EA and Nexon embraced AI for dialogue, NPCs and gameplay, but players criticized low-quality outputs in games like ARC Raiders.
  • Executives cite competitive pressures and investor appeal as reasons for AI use, despite indie developers signaling AI-free projects.

Generative AI Integrates into Major 2025 Game Releases

Generative artificial intelligence emerged as a polarizing technology in the video game industry throughout 2025, appearing in several high-profile titles and sparking debates among developers, executives and players.

The technology, which generates text, images, audio and video from vast datasets, was incorporated into games that dominated sales charts and awards. ARC Raiders, a multiplayer shooter that became one of the year's breakout hits, utilized generative AI for character dialogue. Activision's Call of Duty: Black Ops 7 included AI-generated images, while Clair Obscur: Expedition 33, winner of the 2025 Game of the Year at The Game Awards, briefly featured such assets before developers removed them.

Previously confined to experimental prototypes or obscure indie titles amid the thousands released annually on platforms like Steam, generative AI in 2025 marked a shift toward mainstream adoption. Proponents argue it could reduce development times and costs, addressing budget overruns and lengthy production cycles that have strained the sector.

Industry Leaders Embrace AI Partnerships

Major studios forged alliances with AI firms to leverage the technology. Ubisoft developed tools for generating short dialogue snippets, known as 'barks,' and created non-player characters (NPCs) capable of conversational interactions powered by generative AI. Electronic Arts partnered with Stability AI, while Microsoft employed AI for analyzing and generating gameplay elements.

Other publishers, including Nexon, Krafton and Square Enix, publicly endorsed the technology's role in their workflows. Nexon CEO Junghun Lee stated in an interview that 'every game company is now using AI,' underscoring its perceived ubiquity.

These initiatives replaced earlier trends like non-fungible tokens (NFTs) as the focus of industry buzz. Executives positioned generative AI as a democratizing force, potentially enabling smaller teams to compete with industry giants by streamlining asset creation.

Backlash from Players and Developers

Public response has been largely negative, with players voicing concerns over quality and authenticity. In Ubisoft's Anno 117: Pax Romana, AI-generated assets were identified post-launch; the company described them as having 'slipped through' quality checks and promptly replaced them.

Activision took a different approach with Call of Duty: Black Ops 7, acknowledging the AI images but retaining them in the final product. The decision drew scrutiny, as did similar discoveries in other titles.

Critical reception varied. ARC Raiders received low review scores, with outlets explicitly citing generative AI use as a detractor. In contrast, Clair Obscur: Expedition 33 earned widespread acclaim, with its brief AI involvement receiving minimal attention.

Indie developers, in particular, resisted the trend, developing methods to certify their games as free of generative AI. This pushback highlights broader tensions, as rank-and-file creators fear job displacement and ethical issues related to AI training data, often sourced from human-generated content without consent.

Executives Defend AI Amid Quality Concerns

Studio leaders have tempered their enthusiasm with caveats. Activision emphasized that AI 'empowers' developers rather than replacing them. EA Vice President Rebecka Coutaz described the technology as 'seductive' but confirmed it would not appear in Battlefield 6's final version.

Larian Studios CEO Swen Vincke, whose team developed the acclaimed Baldur's Gate 3, revealed limited use of generative AI in their upcoming Divinity project—strictly for ideation, with all final assets human-made. Speaking to Bloomberg, Vincke explained the industry's tech-driven nature: 'You try stuff... If somebody finds the golden egg and you’re not using it, you’re dead.'

Despite the rhetoric, generative AI's outputs have underwhelmed. A report from outsourcing firm Keywords Studios, which tested creating a 2D game solely with AI tools, concluded that while it streamlines certain processes, it cannot supplant human creativity. AI-generated images in titles like Call of Duty were easily spotted due to their subpar quality.

Ubisoft's AI NPCs produce dialogue described as unnatural and stilted. In the Chinese MMORPG Where Winds Meet, players exploited chatbot NPCs to generate inappropriate responses, echoing incidents in Fortnite where AI Darth Vader was manipulated into profanity.

Economic Pressures Fuel AI Adoption

The persistence of generative AI stems from dual motivations: strategic and financial. Executives like Vincke highlight the risk of falling behind competitors who might unlock breakthroughs. More tangibly, the technology attracts investment in a volatile market.

Despite economic headwinds—including inflation, declining consumer spending and rising unemployment—the stock market surged in 2025, buoyed by trillions invested in AI. Game publishers, seeking capital to sustain operations, announce AI initiatives to appeal to investors, even if the tools' impact on products remains marginal.

This dynamic has positioned generative AI as 2025's lightning rod, balancing promises of innovation against realities of implementation flaws and community resistance. As the industry evolves, the technology's long-term role remains uncertain, with calls for transparency and regulation growing louder.

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Tanmay@Fourslash

Tanmay is the founder of Fourslash, an AI-first research studio pioneering intelligent solutions for complex problems. A former tech journalist turned content marketing expert, he specializes in crypto, AI, blockchain, and emerging technologies.

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