The gaming industry is undergoing unprecedented changes, and the application of artificial intelligence technology has become a key driving force. The recent annual report released by gaming giant Embracer Group details its strategic plan to actively embrace AI, which has attracted widespread attention in the industry. This report not only demonstrates Embracer’s ambition to use AI to improve game development efficiency and player experience, but also reveals the potential challenges and risks behind the application of AI technology, including employee concerns, legal supervision, and fierce market competition.
The recent annual report released by gaming industry giant Embracer Group revealed its ambitious plans for the application of artificial intelligence (AI) in game development, triggering widespread attention and discussion in the industry. As the copyright owner of well-known game series such as "Lord of the Rings" and "Tomb Raider", Embracer's AI strategy will undoubtedly have a profound impact on the entire gaming industry.
Embracer recently split the company into three separate entities and developed a "Group Artificial Intelligence Policy." Although the full text of the policy has not been made public, it is said to have "empowerment" as its core concept. The company emphasized in the report that AI can significantly improve the game development process by improving resource efficiency, enhancing intelligent behavior, personalizing and optimizing the game experience. Embracer said that AI technology is expected to create a more engaging and immersive gaming experience, providing each player with unique, dynamic and personalized content.

Picture source note: The picture is generated by AI, and the picture is authorized by the service provider Midjourney
However, this ambitious AI strategy has also raised concerns among developers within the company. Particularly in the context of Embracer's recent layoffs, employees have expressed concerns about how AI might affect their job prospects. In response to these concerns, Tomas Hedman, the company’s director of privacy and artificial intelligence governance, emphasized that Embracer’s goal is not to replace humans with AI, but to empower humans. Hedman said that the company has adopted a "human-centered" approach, aiming to fully realize the potential of AI while lowering the threshold for game production so that a wider group of developers can participate in game creation.
While Embracer has tried to reassure employees about concerns, some of the company's statements appear to contradict its statements. In a risk assessment heat map, Embracer listed "failure to implement artificial intelligence" as a potential "significant" risk, making it clear that not using AI will cause the company to lose competitiveness and be surpassed by competitors. This stance has undoubtedly heightened employees’ concerns about the company’s future AI policies.
Embracer also recognizes the legal and regulatory risks that come with the use of AI. The company emphasizes that the application of AI needs to comply with general laws and specific requirements, and regards AI governance as a potential risk that requires close attention.
Embracer's AI strategy reflects the profound changes the gaming industry is undergoing. On the one hand, AI technology promises unprecedented innovation and efficiency; on the other hand, it also raises profound questions about employment, creativity, and the nature of games. Embracer’s case demonstrates how game companies can balance the complex challenges of employee concerns, legal risks, and market competitive pressures while embracing AI innovation.
All in all, Embracer's AI strategy provides valuable experience and reference for the game industry. How to strike a balance between technological innovation and employee interests, legal compliance and market competition will be a key issue facing game companies in the future. Embracer's attempt provides an important reference case for the industry to explore the best path for AI applications.