The games industry is in the middle of a major shift. Development costs continue to rise, markets are crowded, and players are spending more time on older titles. For many studios, finding ways to stand out and stay profitable is becoming more difficult. At the same time, generative AI (gen AI) is emerging as one of the most influential tools in modern game development.
At the 2025 devcom developer conference in Cologne, Europe’s largest gathering for game makers, Google Cloud released new research in conjunction with The Harris Poll that highlights how central AI has become. The study of 615 developers from the US, South Korea, Norway, Finland, and Sweden shows near-universal agreement on AI’s impact: 97% say gen AI is reshaping the industry, and 90% are already putting it to use in their daily work.
Adoption and impact
Developers see AI as more than a time-saving tool, describing it as a way to streamline repetitive work and help smaller studios keep pace with industry giants. Gen AI is now part of tasks like speeding up play-testing, automating localisation and translation, and improving code generation. US developers in particular report high levels of use in testing, content tagging, and scripting support.
The impact stretches into the player experience as well. Nearly nine out of ten developers say AI is shifting what players expect from games. Over a third of respondents report that gamers are looking for more lifelike and adaptive experiences. Players now want games that respond to their skill level and playing style, creating sessions that feel more personal and less predictable.
The rise of AI agents
One of the most striking developments is the rise of AI agents – systems that can reason, adapt, and act with a degree of autonomy. Agents are already being used to shape smarter non-player character (NPC) behaviour, fine-tune gameplay balance, optimise content, and guide players with tutorials.
Some studios are going further, building NPC agents that can coordinate with each other. The characters might set traps, share weapons, or adapt their tactics based on a player’s choices. Such features move games toward more dynamic environments where no two encounters feel the same.
The survey found that 44% of developers are using agents for content optimisation, while 38% use them for balancing gameplay and tutorials. US studios are leading in deploying agents, especially in NPC behaviour and automated testing.
Shaping workflows and creativity
Developers also highlight AI’s role in daily workflows. Many point to AI-driven engines and balancing tools as some of the most promising developments, helping them handle core aspects of game creation more efficiently. AI is also being used to improve player analytics, shorten project timelines, and extend the life of older games.
For creative work, AI can become a valuable partner. More than a third of developers say they are using it for level design, animation, and dialogue writing. Others report that it allows them to test new gameplay or narrative concepts more easily. Developers say the freedom to experiment is one of AI’s most useful contributions.
Shifting player expectations
As studios experiment with AI, player expectations are shifting in response. Developers see strong demand for features like adaptive difficulty, dynamic environments, and NPCs that learn from interactions. Personalised tutorials and automated moderation of player-generated content are also seen as areas where AI can improve the player experience.
Some developers are applying AI in live events and seasonal updates, while others are using it to improve accessibility features or personalise in-game content for individual players. The changes are raising the bar for what gamers expect from new titles, the survey claims.
Barriers and challenges
Despite the momentum, challenges remain. About a quarter of developers say it is difficult to measure the return on investment of AI projects. Others cite the cost of integration, a lack of training data, and the need to re-skill staff as barriers.
Legal and ethical concerns are also high on the list. Sixty-three per cent of developers worry about data ownership, while more than a third express concerns over player privacy. Questions of licensing and ownership for AI-generated content remain unresolved, with roughly one in three developers unsure who should control these assets.
Looking ahead
Even with these endemic issues, the outlook is overwhelmingly positive. Almost all developers surveyed expect AI to reduce development costs over the next three years, and many believe it will open the door to new business models.
(Photo by Stem List)
See also: Why developers still matter in the age of agentic AI
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