Impact of AI on the Video Game Industry: Layoffs and Automation

The video game industry is seeing a big shift due to AI. Companies like Activision Blizzard have laid off many workers and replaced them with AI tools. Reports say around 10,500 people lost their jobs in 2023. This trend is growing, with another 11,000 layoffs expected. Microsoft even shut down Tango Gameworks and Alpha Dog Games in May.

A survey from the Game Developers Conference found that nearly half of all studios now use AI. Four out of five developers have ethical concerns about this. Generative AI is becoming common in tasks like designing characters and creating game environments. This means fewer jobs for artists and designers.

A recent study shows that 90% of video game companies have already started using AI. This is more than other entertainment industries like TV and film. AI could take over half of the game development process in the next 5 to 10 years. This means many current jobs might vanish.

People in the industry are worried. Activision said AI would only be used for internal concepts. Yet, by the end of the year, they started selling AI-generated content for games like Call of Duty. In January, Microsoft laid off 1,900 workers from Activision Blizzard and Xbox. Many of these were 2D artists.

Other companies like Riot Games say they value their artists. But they too have had layoffs. In China, the number of illustrator jobs has dropped by 70% due to AI. This shows how widespread and fast the impact of AI can be.

Generative AI also faces legal issues. US law insists that any copyrighted work needs a human author. This could slow down the use of AI in some areas. Yet, for tasks that don't make it to the final product, it's hard to tell if AI use breaks the law.

Companies are developing their own AI tools. This will likely continue as they aim to cut costs and increase productivity. The changes in the video game industry could be a warning for other fields. Workers need to stay aware and proactive to adapt to these shifts.