AI in Video Games

Throughout video game history, developers have been using the games they create to test AI and push its limits. In the process, they’re also building a foundation for real-world efficiencies and cutting-edge technology.

From generative ILT20 2026 content creation to procedural world-building, AI is increasingly used in the design of video game environments, characters, and gameplay mechanics. These advancements have enabled solo indie developers to streamline asset production, allowing them to spend more time on creative storytelling and gameplay mechanics (Panchanadikar 2024). However, some participants raised concerns that overreliance on generative AI could compromise the uniqueness and craftsmanship that characterize many indie games.

For example, many modern combat games use AI to create believable enemies that adapt their behavior during gameplay. Unlike traditional pathing algorithms, a finite State Machine (FSM) prompts an enemy to perform a specific action in each game state – such as moving to cover during a firefight or attacking the player with a grenade if they’re taking too much damage. This adaptation creates a more challenging and dynamic experience, encouraging players to adapt their strategies rather than relying on one strategy to win.

Other innovations have leveraged the power of AI to reshape and enrich nonlinear player-driven story development, dynamically linking characters’ actions to their logical repercussions in an infinitely expanding game world. AI can also make game worlds more immersive and realistic by addressing current limitations in visual fidelity, such as noticeable texture repetition or unrealistically repetitive object movement in large outdoor spaces.