The gaming industry is experimenting with AI faster than ever, but it is doing so under a cloud of anxiety. A new industry-wide report reveals that while developers and studios are actively using generative AI tools in their daily work.
However, a growing number of professionals believe the technology is ultimately doing more harm than good, particularly at a time when layoffs continue to shake the gaming industry.
The findings come from the 2026 State of the Game Industry report, released by organizers of the Game Developers Conference and based on responses from more than 2,300 industry professionals across roles and disciplines.
The report paints a picture of an industry caught between efficiency gains promised by artificial intelligence and real fears about job security, creative erosion, and long-term impact.
AI adoption rises as job insecurity deepens
According to the report, 52% of game industry professionals now believe generative AI is bad for the industry, up from 30% last year. Only 7% think AI is having a positive impact, a number that has steadily declined over the past two years.
Layoffs remain a defining issue. 28% of respondents said they were laid off in the past two years, a figure that climbs to 33% among US-based workers. Half of respondents also said their current or most recent employer carried out layoffs in the last 12 months, underscoring how widespread the disruption has been.
Despite the uncertainty, 36% of game industry professionals now use generative AI tools as part of their job. Usage varies widely depending on role. Only 30% of people working at game studios reported using AI, compared to 58% of those in publishing, marketing, PR, and support roles.
Why game developers are growing wary of AI tools
Razer
Even within big studios like EA, developers report that AI tools can cause more trouble than help, forcing artists and designers to correct “hallucinated” or broken assets.
Many also worry that by doing so, the are effectively training the very systems they fear might replace them in the future. More 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 avoid, trust in its role within game development is rapidly eroding.
