A new Google Cloud survey found that 87% of video game developers are using AI agents to automate and streamline tasks, amid efforts to control rising costs after widespread layoffs in the industry.

The survey, conducted with The Harris Poll, questioned 615 developers in the US, South Korea, Norway, Finland, and Sweden in late June and early July.

Developers reported that AI helps automate repetitive work, allowing more time for creative tasks, and 44% said they use AI agents to optimize content and process information such as text, voice, code, audio, and video.

However, concerns remain over job losses, intellectual property disputes, and lower pay, as the adoption of AI in gaming continues to spark debate.

Last year, more than 10,000 industry jobs were lost, studios shut down, and Hollywood’s video game performers went on strike over AI and pay issues.

While 94% of surveyed developers expect AI to cut long-term development costs, about a quarter struggle to measure its return on investment, integration costs are high, and 63% are worried about data ownership, with legal uncertainty around licensing and AI-generated content.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ AI adoption accelerates as studios face unprecedented cost pressures

The gaming industry’s rapid AI adoption coincides with its worst layoff period in recent history, suggesting companies are turning to automation during financial strain.

The 87% AI adoption rate reported in Google’s survey aligns with the industry laying off over 10,500 workers in 2023 alone 1.

Major studios like Activision Blizzard have already begun using generative AI tools for concept art, directly impacting traditional creative roles 1.

This reflects how industries historically adopt automation during cost crises, as companies seek immediate productivity gains to offset reduced headcount while maintaining output levels.

The survey’s finding that 94% of developers expect long-term cost reductions from AI suggests this trend will likely intensify as financial pressures continue.

2️⃣ Graphics and visual content emerge as AI’s primary production breakthrough

AI tools have progressed beyond experimental phases to handle core production tasks, particularly in visual content creation where quality standards can be more easily defined.