Krafton Embraces AI: PUBG Maker Announces Radical 'AI-First' Strategy

Krafton's AI-First Transformation

Krafton, the company behind popular games like PUBG: Battlegrounds and InZOI, has announced a significant shift in its corporate strategy, declaring itself an 'AI-first' company 1

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. This move represents a complete reorganization of the company's operational development system, placing artificial intelligence at the center of problem-solving and management 3

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Substantial Investment in AI Infrastructure

As part of this new strategy, Krafton plans to invest heavily in AI technology and infrastructure:

• A 100 billion Korean won (approximately $70 million) investment in a GPU cluster to support sophisticated reasoning and iterative planning tasks 1

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• An additional 30 billion won (about $21 million) allocated annually, starting in 2026, to support employees in utilizing and applying various AI tools in their work 3

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The company aims to complete its AI platform by the second half of 2026, which will serve as the foundation for accelerating the implementation of agentic AI 1

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AI-Centered Management and Automation

Krafton's CEO, Kim Chang-han, emphasized that the company will automate work centered on Agentic AI and fully implement an AI-centered management system 2

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. This system is expected to allow employees to focus on creative activities and complex problem-solving 2

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. The strategy also includes:

• AI workflow automation
• Strengthening AI R&D and in-game AI services
• Restructuring HR and organizational operations to support the 'AI First' strategy 1

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Industry Context and Reactions

Krafton's move aligns with a broader trend in the gaming industry, where companies are increasingly exploring AI applications:

• Square Enix, Level-5, Capcom, and Sega have all reported experimenting with or using AI in game development 2

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• A recent survey by the Computer Entertainment Supplier's Association (CESA) showed that over half of Japanese game companies are using AI in their development processes 2

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However, the announcement has been met with mixed reactions. While some see it as a step towards innovation, others express concerns about the potential impact on game quality and employment 4

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. Critics argue that a human-first approach with genuine creativity should be prioritized over AI-driven development 4

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Potential Implications and Concerns

The shift towards AI-first development raises several questions and concerns:

• The impact on game quality and creativity
• Potential job losses due to automation
• The sustainability of heavy investments in AI technology
• The use of AI in human resources management 4

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As Krafton moves forward with its AI-first strategy, the gaming industry will be watching closely to see how this approach affects game development, company operations, and the overall player experience.