The recent annual report from gaming industry giant Embracer Group has unveiled its ambitious plans for the application of artificial intelligence (AI) in game development, sparking widespread industry attention and discussion. As the copyright owner of renowned game series such as "The Lord of the Rings" and "Tomb Raider," Embracer's AI strategy is undoubtedly set to have a profound impact on the entire gaming industry.

Embracer has recently split the company into three independent entities and formulated a "Group Artificial Intelligence Policy." Although the full text of the policy has not been made public, it is said to be centered around the concept of "empowerment." The company emphasizes in its report that AI can significantly improve the game development process by enhancing resource efficiency, intelligent behavior, personalization, and optimizing gaming experiences. Embracer states that AI technology is expected to create more engaging and immersive gaming experiences, providing each player with unique, dynamic, and personalized content.

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Image source: Generated by AI, image licensed by Midjourney

However, this ambitious AI strategy has also raised concerns among the company's internal developers. Particularly against the backdrop of recent layoffs at Embracer, employees are worried about how AI might affect their job prospects. In response to these concerns, Tomas Hedman, the company's director of privacy and AI governance, emphasized that Embracer's goal is not to replace humans with AI but to empower them. Hedman stated that the company has adopted a "human-centric" approach, aiming to fully leverage the potential of AI while lowering the barriers to game production, enabling a broader group of developers to participate in game creation.

Despite Embracer's efforts to reassure employees, some of the company's statements appear to contradict its declarations. In a risk assessment heatmap, Embracer lists "not implementing AI" as a potential "major" risk, clearly stating that not using AI would lead to the company losing competitiveness and being surpassed by competitors. This stance undoubtedly exacerbates employees' concerns about the company's future AI policies.

Embracer also recognizes the legal and regulatory risks associated with AI use. The company emphasizes that the application of AI must comply with general laws and specific requirements, viewing AI governance as a potential risk that requires close attention.

Embracer's AI strategy reflects the profound transformation the gaming industry is undergoing. On one hand, AI technology promises unprecedented innovation and efficiency; on the other hand, it raises profound questions about employment, creativity, and the essence of games. Embracer's case demonstrates the complex challenges gaming companies face in embracing AI innovation while balancing employee concerns, legal risks, and market competition pressures.