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Standing at the AI Chasm's Edge: Video Gaming's Next Challenge

GDC 2025 Reflections

Author: Stephen Peacock, Head of Games AI at Keywords Studios
Date Published: 24/03/2025

After a week at GDC 2025, I've come to a clear realisation: the gaming industry has fought its way to a milestone moment in generative AI's adoption journey. We're at that critical juncture between early adopters and the early majority—with the greatest challenge, the chasm, ahead of us.

The Technology Adoption Journey

For those unfamiliar with the concept, the technology adoption curve shows how innovations spread through a market: innovators embrace new technology first, followed by early adopters, then the early majority, the late majority, and finally, laggards. Between early adopters and the early majority lies a chasm—a gap where many promising technologies fail because the needs and expectations of these groups differ dramatically.

It's worth noting that machine learning has crossed this chasm in gaming. The growth of the ML Summit at GDC, the widespread acceptance of ML in LiveOps, and acquisition and retention stand as evidence of this transition. However, ML never significantly impacted production processes themselves.

Technology_Adoption_Curve

Image Source: Business-to-you

Generative AI is different—it's the AI that production teams need. That's why seeing its rapid advancement to the chasm's edge in just the past year is so exciting. What I observed at GDC 2025 suggests we're now prepared for the difficult crossing ahead, with signs of this shift in every conversation and across the show floor.

The Pragmatist's Approach to AI

The early majority—pragmatists in Moore's terminology—approach technology differently than early adopters:

  • They require proven solutions, not experiments
  • They want evolution, not revolution
  • They need technology to enhance existing workflows
  • They demand clear return on investment, not vague promises

This explains why the conversation at GDC has shifted from whether AI has a place in game development, to how to implement it effectively. In discussions with executive producers and AI leaders, one sentiment came through consistently: they're sick and tired of AI tech demos. They need customer success stories and concrete examples of measurable benefits from their peers.

A perfect illustration: Last year's startups boasted about AI that could "generate animations from prompts," implicitly asking, "Who needs mocap?" This year, that hype vanished. Instead, motion cap (mocap) hardware vendors have AI in their processing pipelines to reduce post-capture cleanup time—a practical enhancement to existing workflows rather than a revolutionary replacement.

The Dangerous Crossing

Make no mistake—this chasm is treacherous territory. Many startups and technologies fail to cross it. Having worked for startups that successfully did so and some that didn't, I can attest to the challenges.

The successful ones share a common trait: they fully embrace the needs of the pragmatic early majority with a laser-like focus rather than continuing to cater to visionaries. This means shifting from selling future potential to delivering proven value today.

Perhaps the greatest threat during this crossing comes from investors, who often push for sizzle and inflated impact estimates. While startups chase funding with flashy demos and big promises, studios want reliable solutions to specific problems. This misalignment explains why many startups struggle to gain traction despite initial excitement.

The Organisational Challenge

The clearest sign of our position at the chasm's edge is that AI teams across studios are overwhelmed with requests while developers increasingly adopt "shadow AI" tools to solve immediate problems. This tension between formal and informal adoption happens when technology reaches the point where pragmatists begin to see its value but before organised systems are in place to support widespread adoption.

This explains the strong interest in our new Consultative AI Solutions service at GDC. As we prepare to cross the chasm, studios need partners who understand both the technology and the organisational challenges of this transition.

Looking Forward: The Crossing Ahead

Crossing the chasm will be the most challenging part. Success will require complete solutions (not just technology), proven use cases, and standardized governance frameworks.

On the other side of this chasm is a healthier, more productive industry reinvigorated by new technologies that increase our ability to delight players profitably. The shift from theoretical possibility to practical implementation we've seen at GDC this year suggests we're prepared for this crossing, but it will require collaboration, patience, and persistence.

The gaming industry has always been at the forefront of technology adoption. If we work together—sharing success stories, developing standards, and focusing on pragmatic solutions—we can make it to the other side.

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