The buzz about AI replacing human workers is turning into reality for some graphic designers and artists. A recent report claims video game studios are using AI tools like MidJourney and Dall-E to develop concept art and graphics for games. This, according to the report, has led to either layoffs of human designers or studios holding off on filling open design positions.
A recent investigation by Wired paints a concerning picture of the gaming industry. Their findings show a significant rise in job losses due to AI adoption. In 2023, nearly 10,500 jobs were lost, and so far in 2024, that number has climbed to 11,000. Emails and interviews obtained by Wired reveal studios facing harsh economic realities are turning to AI tools to cut costs.
This trend is further confirmed by a CVL Economics survey cited in the report. Compared to the TV, film, and music industries, gaming is leading the way in AI adoption. The survey of 300 industry leaders found a staggering 90% of video game companies already using generative AI programs.
The CVL report highlights a significant shift in the gaming industry. They claim the industry relies more heavily on generative AI (GenAI) than other entertainment sectors. Tasks like storyboards, character designs, rendering, and even animations are increasingly being handled by GenAI. Their estimates suggest GenAI could contribute to over half of the game development process within the next decade.
Wired’s report further emphasizes this concern by mentioning recent layoffs at Microsoft’s Xbox division. 2D artists were particularly affected by these cuts. The report details two specific instances: the closure of studios Tango Gameworks and Alpha Dog Games in May 2024, and earlier layoffs impacting 1,900 employees across Activision Blizzard and Xbox in January 2024.
The report doesn’t just focus on Microsoft. Activision also comes under scrutiny. In 2023, an email from their then-CTO, Michael Vance, flagged their embrace of AI technologies. This led to integrating AI for concept art and marketing materials, with layoffs following soon after.
The trend isn’t limited to Activision. Electronic Arts and Riot Games are also mentioned as companies resorting to layoffs potentially due to AI adoption.
This raises concerns beyond gaming. The report suggests GenAI tools like ChatGPT and MidJourney are becoming more sophisticated, leading to increased use across various industries. From creative fields like writing and concept art to technical areas like coding (with tools like Claud Sonnet), AI is making a significant impact. The implication is that job losses due to AI may not be exclusive to gaming.
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Job losses in tech are on the rise, with Layoffs.fyi reporting a staggering 370,550 people losing their jobs across over 1,000 tech companies between 2023 and 2024. This trend is fueled by a combination of economic challenges and the growing adoption of AI. Companies are looking to cut costs and boost efficiency, and AI is seen as a way to achieve both. This raises concerns about the potential for AI to displace human workers in the tech sector.
