The impact of AI on gaming jobs is a hot topic in today’s discussions. Every time you open a news portal, you see articles about artificial intelligence (AI). These range from how AI simplifies life to fears of AI taking over jobs. The conversation is pervasive.

The video game industry felt the impact of AI on gaming jobs earlier than most. Last year, Wired reported that private discussions within the industry were filled with concerns about AI replacing jobs. Executives expressed excitement, but many artists, writers, and game designers saw it as a direct threat to their livelihoods.

Mass Layoffs and Growing Fears

In 2023, over ten thousand people in the gaming industry lost their jobs. This year, layoffs worsened, with studios cutting another 11,000 employees. The number continues to rise. Microsoft, which owns Xbox and several studios including Activision Blizzard, closed Tango Gameworks and Alpha Dog Games in May. Meanwhile, generative AI systems from OpenAI and its competitors are disrupting careers across industries.

Gaming industry employees face significant challenges due to the impact of AI on gaming jobs, even though they have surpassed Hollywood economically. However, the workforce remains largely unsyndicated. A recent survey by the Game Developers Conference revealed that 49% of over 3,000 respondents said their workplace uses AI. Four out of five expressed ethical concerns.

There’s no turning back. AI is here to stay.

Automation is Inevitable

People lose jobs, some quit, and many retire without replacements—only to be replaced by machines. Managers in the gaming industry increasingly use AI to cut costs, boost productivity, and fill gaps left by departing employees. The impact of AI on gaming jobs is already evident, with AI replacing and diminishing job roles. However, the process is complex, with vague management decisions and unclear goals.

Bobby Kotick, CEO of Activision Blizzard in 2023, addressed concerns about AI’s impact on the gaming industry. At a company-wide meeting, he said, “I’ve known Sam Altman and the people at OpenAI for a long time. Many don’t realize that much of modern AI, including ChatGPT, started with the idea of winning a game—whether it was Warcraft, Dota, StarCraft, Go, or chess. Last year, I felt the same way I did when I first saw the Macintosh: realizing how AI would significantly impact society, both positively and negatively.”

This cautious approach didn’t last long. By the end of the year, Activision secured access to GPT-3.5 and approved the use of generative AI tools for creating concept art and marketing materials. The company also began using AI in visible areas like customer surveys.

Despite fears, most employees stayed silent, afraid of losing their jobs. They convinced themselves that AI would only create concepts and not replace them.

The Reality of AI Integration in Gaming

Fears materialized quickly. By the end of last year, Activision offered the first AI-generated cosmetic item for Call of Duty. In January, Microsoft laid off 1,900 employees from Activision Blizzard and Xbox, with 2D artists among the hardest hit.

In a world dominated by 3D titles, artists focused on 2D either lost their jobs or signed up for AI training.

Statements like “that’s just the way it is” offer little comfort to laid-off workers. The impact of AI on gaming jobs has become clear with the departure of 2D artists. It’s a sad reality, but the industry must be watched as the “harbinger of a new era.” Leaders now opt to hire a single art director to command AI rather than employing a team of concept artists.

Initially, the results might be questionable, but studios can later hire artists to correct flaws. The product will ultimately be “good enough.”

Concept artists, graphic designers, asset artists, and illustrators face the most significant impact from AI. Generative AI produces 2D images that studio managers under financial pressure might deem “good enough.”

AI now handles many tasks traditionally performed by these workers. Traditionally trained artists are employed to refine, adjust, and make minor corrections to AI-generated work—if they’re employed at all.

The Future of the Gaming Industry

Some companies will always prioritize quality and human craftsmanship over AI, which reprocesses existing art. However, others prioritize savings.

Automation has been part of the industry for years, but generative AI is different. According to a report by consulting firm CVL Economics, the gaming industry relies on AI far more than television, film, or music industries. Almost 90% of companies have already implemented generative AI programs in some way.

In the next five to ten years, GenAI could handle more than 50% of the game development process.

Currently, the industry faces turmoil because no one is sure whether using GenAI is legal, given potential copyright infringements. American law insists that any work seeking copyright must have a human author. However, whether using unlicensed intellectual property to train AI systems violates rights remains an open question. The uncertainty around copyright, security, and job losses has divided the industry into those who oppose AI and those who see it as a cost-cutting measure.

Some studios have nearly banned generative AI. According to sources, Blizzard, unlike its sister studio Activision, doesn’t allow developers to use publicly available AI generators, even when developing their AI tools. Other companies, however, embrace them.

A Double-Edged Sword

Electronic Arts CEO Andrew Wilson offers a more optimistic view. He believes that in every revolution—agricultural, industrial, and so on—there were initial job losses, followed by a significant increase in job opportunities in the long run.

Despite this optimism, EA reduced its workforce by five percent in February 2024.

Riot Games, the company behind the hugely successful League of Legends series, initially planned to retain as many employees as possible and not replace them with AI. However, according to Reuters, Riot announced plans to integrate their Hunyuan AI model into many business scenarios.

Yet, they still laid off over 500 people.

AI Isn’t to Blame for Everything

However, the mass layoffs aren’t solely due to AI. Most of these jobs weren’t replaced by AI. Many companies overhired during the early days of the pandemic. Layoffs at Activision Blizzard began after Microsoft’s acquisition, and many companies now rely more on outsourcing and contract work.

As Wired explains, AI isn’t the problem. Instead, it’s a symptom of a much larger issue: the race to the bottom, where companies seek to cut wages by any means, often outsourcing work to other countries.

China feels the pressure from AI too. For example, the number of jobs for illustrators has dropped by 70%, partly due to the wide availability of generative AI tools. In the US, more job ads now require “exceptional skills in digital sketching, drawing, and painting, as well as advanced expertise in working with generative AI tools like Stable Diffusion, Vizcom, DALL-E, or equivalents.”

Many are unhappy with this shift.

The Need for Unionization

These changes have created a strong need for unionization. Workers currently have no voice in this discussion. The changes have also sparked online debates among gamers who, in solidarity, refuse to support companies that mistreat their employees. However, these performative boycotts should be approached with caution, as similar actions around crunch culture had little impact on sales.

Gamers ultimately want their games released as quickly as possible, and AI will help achieve this. The question is whether they’ll be satisfied with “good enough” and how that will affect sales.

Will players eventually create their games, thanks to companies like Braindump, which offer an “entire AI game studio”?

In any case, all companies are working on their AI systems, and resistance exists. In the Wired article referenced here, none of the artists, illustrators, or designers wanted to use AI. Their bosses imposed it on them.

One thing is clear: The impact of AI on gaming jobs is significant, and AI won’t leave anytime soon. It’s an inevitable tool in all industries. Like any tool, it’s not inherently bad. The question is how it will be used and whether companies will balance profit, quality, and care for their employees.