Krafton Faces Backlash Over AI Push and Job Cuts

Krafton, the company behind the popular game PUBG, is facing significant backlash from players and industry observers following its announcement to transition to artificial intelligence (AI) at the expense of human employees. The move, which includes a voluntary resignation scheme, has sparked calls for a boycott, as discussions on social media platforms like Reddit reveal growing discontent among gamers.

In late July, Krafton reported a record-breaking first half of the year, generating nearly $500 million in profit. Following this financial success, the company shocked many by declaring its intention to invest in AI technology to “shape the future of gaming.” This announcement coincided with a third-quarter revenue report that further underscored the company’s financial stability, yet it came with plans for a significant restructuring that would affect its workforce.

According to Business Korea, Krafton is promoting a voluntary resignation program as a form of assistance rather than a direct workforce reduction. Employees are being given the option to either transition to different roles within the company or seek employment elsewhere. Nevertheless, the core of the controversy revolves around the integration of AI into the game development process. In an internal memo, Krafton CEO Kim Chang-ha indicated that the company intends to “automate work centered on agentic AI,” although specific applications of this technology remain unclear.

The potential uses of AI within game development are broad, encompassing areas such as asset generation, character visualization, dialogue creation, and quality assessment. Critics argue that this shift could lead to job losses for creative and technical staff, as well as a decline in the quality of games produced. The recent history of AI adoption in the gaming industry has seen mixed results, with some companies experiencing significant backlash for their decisions.

The SAG-AFTRA strike concluded in July, addressing concerns over AI rights for voice actors and artists. The agreement aimed to protect workers in an environment increasingly influenced by AI technologies. However, the risk of job displacement extends beyond voice performers to include a wide range of professionals involved in game development.

Krafton’s decision is not isolated. Other major players in the gaming industry, including Activision, Riot Games, and Square Enix, are also exploring AI applications. A recent investigation by WIRED revealed that the industry has seen extensive layoffs, with 26% of game industry workers in Europe losing their jobs in 2024 alone. The trend has raised alarms about the long-term implications of AI on employment levels and game quality.

Critics of Krafton’s AI initiative have pointed to a growing sentiment against the use of AI in gaming. For example, Tim Sweeney, CEO of Epic Games, suggested that the criticism is largely political, arguing that AI can enhance productivity and ultimately improve game quality. In contrast, developers like those at Necrosoft Games have publicly rejected AI in their creative processes, emphasizing a commitment to human artistry.

In recent months, the gaming community has witnessed several controversies surrounding AI-generated content. Elon Musk announced plans for his AI company, xAI, to produce AI-generated media, including a game expected to launch in 2026. Activision also faced backlash for utilizing AI-generated assets in its upcoming Call of Duty title. Many developers fear that AI will diminish game quality, as evidenced by widespread criticism of AI-generated game clips that failed to meet industry standards.

With a staggering 95% failure rate for AI investments, concerns about the environmental impact and ethical implications of AI continue to grow. Industry insiders have expressed skepticism about the effectiveness of AI in game development, with reports from employees at Electronic Arts indicating that efforts to integrate AI have met with limited success.

As Krafton embarks on its AI-driven future, the gaming community remains divided. While some see potential for innovation, others fear it may come at a significant human cost. The ongoing debate highlights the complexities surrounding AI’s role in the gaming industry and raises critical questions about the balance between technological advancement and workforce sustainability.