We’ve been hearing about how AI could lead to job losses across various industries and sectors. Now we’re getting reports that this is actually happening in some. One report suggests that some game studios are using GenAI tools like MidJourney and Dell-E to create concept art and graphics that can be used in video games. According to the report, this has either resulted in the loss of jobs for human graphics designers and artists or these game studios have not filled existing vacancies with humans.

According to an investigation conducted by Wired, about 10,500 people are expected to lose their jobs in the gaming industry in 2023 due to AI tools. The report states that about 11,000 employees have lost their jobs so far in 2024. Emails and interviews obtained by Wired for its report paint a picture of an industry under pressure. The report shows that as game studios are trying to cut costs due to the unfavorable business environment, they are increasingly relying on AI tools.

A survey conducted by CVL Economics, cited by Wired, found that the gaming industry has already handed over more tasks to generative AI than its peers in TV, film, or music. According to its survey of 300 CEOs, executives, and managers, nearly 90 percent of video game companies have already implemented generative AI programs.

“The gaming industry relies heavily on GenAI to complete tasks such as creating storyboards, character designs, renders, and animations, compared to other entertainment industries. In fact, according to some estimates, GenAI could contribute to more than half of the game development process in the next five to ten years,” CVL reports.

Wired reported that when Microsoft recently announced shutdowns and layoffs in its Xbox division, 2D artists were among the most affected employees. In May 2024, Microsoft shut down Tango Gameworks and Alpha Dog Games. Earlier, in late January 2024, the company laid off 1,900 employees from Activision Blizzard and the Xbox division.

Activision is also mentioned prominently in the report. It is mentioned that in 2023, the then-CTO of Activision, Michael Vance, sent an email to employees highlighting the potential of AI technologies and how the company was using them. As a result, the company began integrating AI into creating concept art and marketing materials and this also led to layoffs.

The same report also mentioned Electronic Arts and Riot Games as game companies that have laid off employees.

The gaming industry is probably not the only industry where employees may face pressure due to GenAI tools. Given the way tools like ChatGPT and MidJourney have improved, organizations are increasingly using them in various services and products. There are also tools like Cloud Sonnet, which companies are using for coding and programming work. GenAI tools are also being used in the creative industry to create written content or create concept art.

According to Layoff.fyi, between 2023 and 2024, about 370,550 people from more than 1,000 tech companies are projected to lose their jobs amid economic uncertainty and the rise of AI. Companies are cutting their workforce to save costs and relying more and more on artificial intelligence to work quickly and effectively, making them more productive.