Gaming Industry Leaders Turn to AI as an Essential Strategy During Market Transformation

Electronic Arts (EA) and Krafton, two major forces in the gaming sector, are rapidly adopting generative AI throughout their businesses, marking a significant evolution in game creation and management. While

is utilizing AI to optimize content production and cut expenses as it approaches a $49 billion private-equity acquisition, Krafton is reshaping itself as an "AI-first" company, allocating nearly $70 million to GPU resources and employee upskilling.

EA's recent initiatives coincide with an anticipated tough financial quarter. Projections suggest its Q2 earnings per share will fall 40.9% year-over-year to $1.27, with revenue expected to reach $1.86 billion, according to

. The company faces additional financial strain from a $49 billion buyout led by Silver Lake, Saudi Arabia's Public Investment Fund, and Affinity Partners, as reported by . To address these challenges, EA has teamed up with Stability AI to deploy tools that speed up 3D game development and asset creation, as detailed in . This partnership is intended to improve visual quality and shorten production cycles, with EA highlighting that AI will serve as a "trusted ally" rather than a replacement for human imagination, according to . "AI can draft and analyze, but it can't imagine or empathize," EA stated, reaffirming its dedication to keeping narrative and design under human control.

At the same time, Krafton, the company behind PUBG: Battlegrounds, is undergoing a major organizational overhaul. The firm has announced a $70 million investment in GPU clusters to automate processes and introduce "agentic AI" capable of complex reasoning and planning, as reported by The Verge (

). This move is part of a comprehensive "AI-first" approach, which also involves spending $21 million annually on staff training and revamping HR and management systems to support AI-centric workflows, according to . Krafton's CEO, Kim Chang-han, described this transformation as a way to relieve employees from monotonous duties, enabling them to concentrate on creative solutions and innovation. The company also aims to launch an AI platform by the end of 2026, paving the way for extensive automation in both game development and business operations.

The gaming industry's embrace of AI is part of a wider movement. Other technology companies, such as Shopify and Duolingo, are also integrating AI to streamline operations and lower costs, as noted by The Verge. Investors involved in EA's acquisition have specifically pointed to AI-powered savings as a major driver of future profit, according to The Outpost. Nonetheless, this shift has sparked concerns about job losses and the effect on creative work, issues that have surfaced in discussions about Krafton's new direction. Although both Krafton and EA emphasize that AI is meant to support—not supplant—human creativity, the ultimate impact on game development remains to be seen.

As these companies advance, their approaches illustrate a broader trend: AI has become an essential component of the industry, not just a speculative technology. For EA, AI offers a crucial solution amid financial headwinds, while Krafton's overhaul represents a bold new vision for game development in the age of artificial intelligence.