Artificial intelligence has been transforming the world in recent years across nearly every field, from medicine and education to transportation, finance, design, and art. In the gaming industry, one of the most creative and fastest-growing sectors, it is driving profound change: it’s no longer just about advanced graphics or new combat mechanics, but about a sweeping revolution that brings intelligent characters, real-time story generation, and personalized experiences that reshape the relationship between player and game.
AI not only upgrades the look of characters and generates new worlds, it is also changing workflows, transforming business models, and, most importantly, creating a more personalized and complex gaming experience than ever before.
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Uri Rubin (left) and Shahar Sorek.
(Photos: Tom Simon, Ohad Romano)
A 2022 Deloitte report showed that more than 70% of large game development companies had already set up dedicated AI teams working across departments. These teams are responsible for developing and implementing AI technologies while overseeing internal governance and quality control.
Ubisoft, for example, uses Ghostwriter to write initial dialogue for NPCs (non-player characters), saving the writing team hundreds of hours and freeing them to craft richer, more complex storylines. EA, for its part, uses AI models to detect bugs and test game balance, dramatically shortening testing cycles while maintaining product stability over time.
This trend is also evident in Israel. Uri Rubin, CTO at Playtika, says the company is adapting its operations to meet new realities. “One of the best examples is moving an independent business unit (studio) into the technology division,” he says. “Changing an organizational culture that has existed for years requires external momentum, and that’s exactly what AI provides. The idea is to break out of the traditional structure where the studio and technology teams work separately, and instead combine forces with a shared focus. For the first time, teams are working together toward one goal.”
Rubin notes that integrating AI into the studio’s workflows allows the company to deliver more precise and efficient solutions: “This change ensures that the studio and technology teams stay aligned and focused on shared tasks. We’re learning as we go and believe that if this transformation succeeds, we can replicate it across other units.”
According to Shahar Sorek, CMO at Overwolf, “Every department in the company already uses AI. In my department alone, we rely on at least ten different tools daily – for design, writing, video editing, supporting internal workflows, and even accelerating coding. These tools let us work at a much larger scale.”
However, Sorek stresses that adopting AI requires extra caution for sensitive tasks, especially those involving a product’s core elements. “The more critical the product, like the code, game engine, or sensitive data, the more carefully you need to introduce AI. After all, it’s not your own tool, it’s not built in-house, and you can’t always know where your exposed data might end up or how it could be used.”
Despite the enormous savings in time and resources, Sorek insists the new technology does not come at the expense of human workers. “I’m not laying people off,” he clarifies. “The more complex the product, the more people you still need.”
“Technology isn’t going to replace people, it’s going to upgrade them,” Rubin adds. “We’ll always need the human factor on every team, but at the same time, AI will play a significant role in informing decisions. AI will handle tedious, repetitive tasks and free up teams for creativity, critical thinking, and faster, more dynamic decision-making.”
Where the industry once focused on linear, fixed, and predefined games, AI is now making gameplay dynamic, multi-layered, and deeply personal. There are already plenty of examples that show how far the technology has come.
In Minecraft, for instance, the world’s best-selling game, modding communities (independent developers who expand the base game) have created AI-powered add-ons that let players generate entire worlds automatically. The player simply enters a short description, for example, “a medieval-style underground dungeon with traps and rare creatures,” and the system builds it in minutes, complete with enemies, quests, hidden items, and surprises. Such add-ons have become especially popular on private servers, where developers craft unique adventures for each player or group.
There’s also been a major leap in NPC technology. Inworld AI, an American company, has developed a platform for creating interactive characters that understand context, retain memory, and can hold complex conversations with players. These characters learn player behavior and adapt their responses in real time, expressing emotions, responding with humor or anger, and maintaining a history of interactions so players can enjoy long, playful exchanges or even philosophical debates.
Ubisoft has also integrated characters whose shifting personalities affect how the entire game unfolds: if a player chooses a violent approach with an NPC, the game opens new subplots that can change the ending entirely.
CD Projekt Red, the developer behind Cyberpunk 2077, is experimenting with AI systems that track players’ play styles over time. If a player often helps weaker characters, the game will offer more emotional and layered plots; if they play aggressively, it will unlock storylines packed with battles and challenges.
“The goal is for every player to ultimately have an experience tailored to their preferences and play style,” says Rubin. “AI will help us produce far more content, giving players a richer, more personalized experience.”
Sorek believes the next big leap will be full-game generation, an AI engine that receives a general prompt and builds an entire custom game. “The AI will learn who you are, what you like, and generate a game for you as you play,” he says. “Of course, there are still challenges, games are complex, both visually and emotionally. The AI isn’t quite there yet, but we’re getting closer. New companies are already developing AI that can manage interactions, build mini-games, and even run entire game engines.”