The gaming industry is experimenting with AI faster than ever before, but it is doing so under a cloud of fear. A new industry-wide report shows that developers and studios are actively using generative AI tools in their daily work.
However, a growing number of experts believe that the technology ultimately does more harm than good, especially at a time when layoffs continue to rock the gaming industry.
The findings come from the 2026 State of the Game Industry report, released by the organizers of the Game Developers Conference and based on responses from more than 2,300 industry experts across roles and disciplines.
The report paints a picture of an industry caught between the efficiencies promised by artificial intelligence and real fears about job security, creative erosion and long-term impacts.
AI adoption is increasing as job insecurity increases
According to the report, 52% of gaming industry experts now believe that generative AI is harmful to the industry, up from 30% last year. Only 7% believe AI has a positive impact, a number that has steadily declined over the past two years.
Layoffs remain a dominant issue. 28% of respondents said they had been laid off in the past two years, rising to 33% of U.S.-based workers. Half of respondents also said their current or most recent employer had made redundancies in the last 12 months, underlining how widespread the disruption was.
Despite the uncertainty, 36% of gaming industry professionals now use generative AI tools as part of their work. Usage varies greatly depending on the role. Only 30% of game studio employees reported using AI, compared to 58% of those in publishing, marketing, PR and support.
Why game developers are becoming more and more suspicious of AI tools
Even at major studios like EA, developers report that AI tools can cause more trouble than help, forcing artists and designers to fix “hallucinated” or broken assets.
Many also fear that by doing so they are training the very systems that they fear could replace them in the future. Recently, Meta laid off hundreds of employees from its Metaverse division, including teams working on its virtual reality games.
This growing skepticism suggests that while AI is becoming harder to circumvent, confidence in its role in game development is rapidly declining.
