Generative AI Usage in Steam Games Surges by 700% in 2025, Raising Concerns and Opportunities

6 Sources

A significant increase in the use of generative AI in Steam games has been reported, with 1 in 5 new releases in 2025 incorporating the technology. This surge has sparked debates about its impact on game development, consumer perception, and the future of the gaming industry.

Surge in Generative AI Usage on Steam

A recent study by Ichiro Lambe, a veteran game developer, has revealed a staggering 681% increase in the number of Steam games disclosing the use of generative AI (GenAI) technology 1. As of 2025, approximately 7,818 titles on Steam, representing 7% of the entire library, now incorporate GenAI in some capacity 2. This marks a significant jump from just around 1,000 titles in 2024 1.

Source: gamesradar

Source: gamesradar

Prevalence in New Releases

The adoption of GenAI in game development has been particularly pronounced in recent releases. Nearly one in five (20%) of all games released on Steam in 2025 feature GenAI in some form 3. This rapid integration of AI technology into game development processes signals a transformative shift in the industry.

Applications of GenAI in Game Development

Developers are utilizing GenAI across various aspects of game creation:

  1. Visual Asset Generation: About 60% of disclosures mention using AI for creating characters, backgrounds, models, and textures 1.
  2. Audio Generation: AI is being employed for background music, voice-overs, and character voices using text-to-speech tools 1.
  3. Text and Narrative Generation: Large Language Models (LLMs) are being used to create item descriptions and even entire story arcs 1.
  4. Code Generation: Many developers are leveraging AI for assistance in coding 4.
  5. Marketing Materials: AI is being used to generate game descriptions and promotional imagery for Steam storefronts 1.

Live Generation and Runtime Applications

Some games are incorporating AI during runtime, known as "live-generated" content. Examples include using GenAI to flag offensive material created by players, generating 3D worlds based on player prompts, and making real-time game mechanics decisions 1.

Source: Creative Bloq

Source: Creative Bloq

Industry Perspectives and Concerns

The rapid adoption of GenAI in game development has sparked diverse reactions within the industry:

  1. Efficiency and Scale: Simon Davis of GOAT Gaming highlighted that AI enables the creation of content on an unprecedented scale, such as generating 25 million characters for a platform 3.
  2. Cost Management: With the gaming industry facing ballooning development costs, AI could help studios reduce overhead expenses associated with large development teams 3.
  3. Job Market Impact: Concerns exist about potential job losses due to AI integration, with 30% of developers viewing GenAI as potentially harmful to the industry 3.
  4. Consumer Backlash: Some gamers express skepticism towards AI-generated content, with some stating they will automatically ignore games that use AI 2.

Developer Strategies and Disclosure

In response to potential consumer backlash, many developers are adopting transparent communication strategies:

  1. Direct Disclosure: Some developers, like GOAT Gaming, are being upfront about their AI usage to maintain customer trust 3.
  2. Careful Language: Developers are increasingly using carefully crafted language to disclose AI use while reassuring customers about its implementation 4.
Source: Fortune

Source: Fortune

Notable Examples and Market Performance

Several games have successfully incorporated GenAI:

  1. My Summer Car: With 2.5 million copies sold, it uses AI-generated paintings as in-game assets 12.
  2. AI Roguelite: Despite heavy AI usage, it has received positive reviews, with players appreciating its flexibility and unique scenarios 4.

As the gaming industry continues to grapple with the implications of GenAI, its integration into game development processes appears to be an to grow. However, the long-term impact on creativity, job markets, and consumer acceptance remains a subject of ongoing debate and observation.

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