The video game industry is experimenting with artificial intelligence at a rapid pace, but the mood around these tools is far from confident. Studios and publishers are actively integrating generative AI into everyday workflows, yet a rising number of developers believe the technology is ultimately harming the industry rather than helping it.
This tension comes at a difficult moment for game development, as layoffs continue across studios of all sizes. While AI promises speed, efficiency, and cost savings, many professionals worry about long term consequences tied to job security, creativity, and the future of their roles.
These concerns are highlighted in the 2026 State of the Game Industry report, released by the organizers of the Game Developers Conference and based on feedback from more than 2,300 professionals working across development, publishing, marketing, and support roles. The findings reveal an industry caught between rapid adoption and growing distrust.
More developers now see AI as a negative force
According to the report, 52 percent of game industry professionals believe generative AI is bad for the industry. That number has jumped sharply from 30 percent the previous year. Meanwhile, only 7 percent of respondents feel AI is having a positive impact, continuing a steady decline in optimism that has stretched over the past two years.
At the same time, layoffs remain widespread. Nearly 28 percent of respondents said they had been laid off within the last two years. Among US based workers, that figure rises to 33 percent. Half of those surveyed also said their current or most recent employer carried out layoffs in the past 12 months, reinforcing how deeply instability has taken hold across the sector.
Despite this uncertainty, AI adoption continues to grow. Around 36 percent of respondents said they currently use generative AI tools as part of their job. However, usage varies significantly depending on role. Only 30 percent of developers working directly at game studios reported using AI, while adoption jumps to 58 percent among professionals in publishing, marketing, public relations, and support roles.
This divide suggests that while AI is being embraced in business facing areas of the industry, those closest to hands on game creation remain more cautious.
Creative teams struggle with unreliable AI outputs
Within large studios, AI tools are often creating new problems rather than solving old ones. Developers have reported issues with AI generated assets that contain errors, inconsistencies, or unexpected results, forcing artists and designers to spend additional time fixing mistakes.
At companies like Electronic Arts, some teams have shared concerns that generative systems frequently produce content that feels disconnected from the creative vision, requiring extensive manual cleanup. Instead of accelerating production, AI can sometimes slow it down by introducing extra layers of review and correction.
There is also a growing fear that every correction made to an AI generated asset contributes to training systems that could eventually replace human workers. For many developers, this creates an uncomfortable paradox where improving AI tools today may undermine their own job security tomorrow.
Layoffs intensify fears around automation
Recent layoffs across the tech and gaming sectors have only amplified skepticism. Meta, for example, cut hundreds of employees from its metaverse and virtual reality teams, including staff involved in game development and immersive experiences. Moves like this have reinforced the belief that AI driven efficiency is being prioritized over creative labor.
While AI tools are becoming increasingly difficult to avoid, trust in their role within game development continues to erode. Many professionals worry that the industry is adopting technology faster than it is addressing ethical concerns, workforce impact, and creative sustainability.
As discussions around AI in gaming continue to grow louder, developers are calling for clearer guidelines, stronger protections, and more transparent conversations about how these tools should be used responsibly. For now, the industry remains split between embracing innovation and protecting the people who make games possible.
