AI is going to kill the game industry as it currently exists.
Generative AI will lead to a lot of real-time effects and mechanics that are currently impossible, like endless quests that don’t feel hollow, realistic procedural generation that can convincingly create everything from random clutter to entire galaxies, true photorealistic graphics (look up gaussian splatting, it’s pretty cool), convincing real-time art filters (imagine a 3d game that looks like an animated Van Gogh painting), and so on.
Generative AI is going to result in a hell of a lot of layoffs and will likely ruin people’s lives.
Generative AI will eventually open the door to small groups of devs being able to compete with AAA releases on all metrics.
Generative AI will make studios with thousands of employees obsolete. This is a double-edged sword. Fewer employees means fewer ideas; but on the other side, you get a more accurate vision of what the director originally intended. Fewer employees also will also mean that you will likely have to be a genuinely creative person to get ahead, instead of someone who knows how to use Maya or Photoshop but is otherwise creatively bankrupt. Your contribution matters far more in a studio of <50 than it does in a studio of >5,000; as such, your creative skill will matter more.
A lot of people will have to be retrained because they will no longer be creative enough to make a living off of making games.
Tbh, I think game development is one of the few places that generative AI will actually have a significant benefit; however I also think it will completely scramble the industry once it starts being widely adopted, and it’ll be a long time before the dust settles.