Michael Douse, Director of Publishing at Baldur’s Gate 3 developer Larian Studios, has cautioned that AI is not the solution to the gaming industry’s problems.
Douse gave his take after Elon Musk declared that his xAI venture will produce an AI-generated game by 2026. He believes the industry’s current trajectory is misguided.
What players and the medium truly require, Douse believes, are not more experiences derived from mathematical formulas and psychological training to create gameplay loops. Instead, he championed the need for deeper, more meaningful expressions of worlds that players can become – or wish to become – fully engaged with.
While acknowledging that AI has a legitimate place as a tool within the development process, Douse argued that the industry already possesses a vast arsenal of advanced tools. These technologies, however, are not compensating for what he identifies as a lack of coherent creative direction. The fundamental challenge facing the gaming industry, in his view, is a deficit in leadership and vision—a problem that AI is simply not equipped to solve.
Douse provided a historical perspective to contextualise the industry’s current predicament. He reflected on the era before the decline of physical retail, a time when retailers themselves imposed a certain standard. Factors like product quality, pricing, and availability were shaped by the demands of the storefront, creating a baseline for consumers. When this model collapsed, an opportunity arose for developers and publishers to forge a more direct relationship with their audiences to cut out the middleman.
This ideal, however, largely failed to materialise. Douse described the subsequent period as a “game of headless chickens,” where companies raced chaotically towards the profit and loss sheet, often losing sight of the player connection that should have been their new foundation. He believes that introducing generative AI into this environment will not fix the underlying issue in gaming. The developers and studios that will find lasting success are those who remain focused on people building something meaningful for other people.
Drawing parallels to other technology trends that have swept through various markets, such as cloud computing and subscription services, Douse noted that it takes time for new technologies to establish stable, productive roots. He expressed concern that the current push for AI in gaming may not grow in the direction the industry needs to heal from the foundational shift it experienced when the “rug of retail” was pulled out from under it.
He voiced a strong conviction that the industry needs more human-to-human expression, not less. So much of recent technological advancement, from virtual reality to cloud gaming, has been characterised by him as a venture capital “cash grab.” Douse warned that gaming does not need another such gold rush. What it requires is sustainability. He sees the potential for modern tools – including AI – to contribute to this goal, but stressed they should be used to support creators, not to replace them.
At the root of his argument against relying too heavily on AI in gaming lies a more philosophical point about the nature of player engagement. Douse contends that there can be no genuine resonance in a game without a foundation of mutual respect between the creator and the player. This mutual respect is impossible without a deep appreciation for the craft of game development. He defines this craft as something inseparable from the human touch, complete with its relative skill issues and what he terms “the exhibition of otherness.”
To pursue a path with AI that turns games into digital, emotionless content is, in his view, to abandon the very resonance that makes people enjoy gaming in the first place. This human element, with all its unique flaws and brilliant insights, is the source of the emotional connection that defines the most memorable and beloved gaming experiences.
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