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Ongoing Story· Today

AI Revolutionizes Game Development, Intensifies User Acquisition Challenge

2 developments

CalcalistTech

AI Revolutionizes Gaming Industry, But Doesn't Make It Easier

Translated & summarized from Calcalist by baba

BusinessCharged tone

Hebrew · 1 newsroom

Artificial intelligence is rapidly transforming the gaming industry, with 90% of developers using AI tools that significantly speed up content creation. Executives from Playtika and Kooply discussed how AI enhances efficiency, reduces staffing needs, and democratizes data access. However, concerns were raised about AI potentially diminishing creativity and uniqueness, and the long-term challenge of preserving human knowledge and competitive differentiation in an increasingly AI-driven market.

The story in 6 lines · by baba

  • 90% of game developers now use AI, drastically speeding up content creation from weeks to hours.
  • AI integration has significantly reduced staffing needs and accelerated decision-making in gaming companies.
  • AI democratizes data access, allowing all users to ask questions and receive answers for better content.
  • Concerns exist about AI diminishing creativity and uniqueness in game development.
  • Preserving human knowledge and finding unique differentiation are key challenges in the AI era.
  • Future gaming success will depend on leveraging data for content and adapting organizational structures.

Artificial intelligence is dramatically reshaping the gaming industry, with 90% of developers now utilizing AI tools, according to Lior Keinan, Senior Vice President of Growth Strategies at Playtika. Keinan stated at a gaming conference that tasks previously taking 50 days can now be completed in five hours, highlighting the speed of AI's impact. He and Ido Yablonka, Founder and CEO of Kooply, discussed how established companies and startups are adopting AI and the challenges it presents.

Keinan noted that while AI significantly accelerates the creation of new games and content, the bottleneck for established companies like Playtika remains in producing rich, constantly updated content. He emphasized that the past year has seen dramatic advancements in AI engines, leading to strong efficiency gains. Yablonka added that AI has transformed Kooply, enabling them to rebuild the company around AI integration in processes like design and strategic planning. He observed that AI's contribution is more pronounced in new games and surfaces, leveraging existing infrastructure, while its impact on older, established games has been more modest.

Yablonka also pointed out that AI has drastically reduced staffing needs, with a plan that once required a thousand employees now needing fewer than fifty, and has sped up decision-making. He described gaming companies as akin to insurance companies with graphics, where better prediction capabilities provide a competitive edge. AI acts as a powerful analyst, enhancing and making data more accessible. Keinan echoed this, explaining that AI democratizes data, allowing every user and studio role to ask questions and receive answers, leading to better content creation.

However, both speakers raised concerns about AI's impact on creativity and uniqueness. Yablonka found that making AI accessible to creators led to a loss of uniqueness, as AI-generated stages lack the human touch. Keinan expressed worry about losing the ability to challenge the machine as it learns more about us, stressing the importance of preserving human knowledge. Yablonka countered that AI tools are not a competitive barrier, but rather a risk of commoditization, emphasizing that differentiation comes from other sources. He predicted that by 2027, the industry will face increased difficulty, and that future success will depend on leveraging data for content creation and adapting organizational structures.

Keinan concluded that for large companies, harnessing data for content creation will be key to winning the race, and that those who adapt their structures and roles will move forward. Yablonka stressed the enduring value of community, depth, and networks, which AI cannot replicate, especially as competition intensifies.

CalcalistOther · Tel Aviv

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