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Published Sep 17, 2026, 11:59 AM EDT
CEO claims the company has learned from its mistakes
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Level-5 has shamelessly boasted about using AI as a crutch in the game development process in order to increase efficiency. This did not sit well with most players, especially considering that the studio has amassed many longtime fans thanks to beloved IPs, such as Yo-Kai Watch and Professor Layton. To put fans at ease, Level-5 has issued a statement responding to AI usage accusations in recent trailers and outlining its course-correction plan moving forward.
Level-5 has openly admitted to using AI in game development. This has prompted fans to analyze the studio's game trailers for evidence of AI — even when it may not exist. During this month's Nintendo Direct, Level-5 showed a trailer for Yo-Kai Watch 2: Haunted Domain. The following day, it was once again presented at Level-5 Vision 2026. However, even though it appeared to show the same footage, some details appear to have been altered in the Level-5 Vision version. This set off alarms among players, who escalated the AI allegations. The situation only got worse when Level-5's presentation also seemed to be riddled with AI content, including an odd, animated depiction of the company's CEO, Akihiro Hino.
Both Level-5 and Akihiro Hino have addressed fans' concerns in statements. In its official blog post, Level-5 claims that the players' concerns regarding the strange vending machine, electrical wires, and gutters were actually human error, as they were hand-drawn by an artist. It claims that the bizarre drawings and lack of details were not caused by AI.
Regarding the differences spotted in the Yo-Kai Watch 2: Haunted Domain trailer, the company says in the post that it used an earlier version of the trailer due to Nintendo's strict deadline for the Direct. The company does not specifically say whether or not AI was used for this older trailer. Level-5 says it will reupload an updated version of the trailer for Tokyo Game Show, which will not feature any AI or human errors.
Level-5 claims it does not use AI directly in game content
The company says it did not use AI in the creation of Professor Layton and The New World of Steam, and that "there is absolutely no direct use of AI in the game content." Hino says that AI is mainly used to boost efficiency at Level-5 and that each game's charm and individuality remain untouched and is still created by humans. The increase in efficiency allows creators to dedicate themselves to games and deliver a finished product faster.
The controversy has left fans of the company's games wary of its current creative direction. While these statements are an attempt to do some damage control, it's hard to say whether this will mend fans' relationship with Level-5, especially considering how outspoken the company has been in recent months about its AI use.
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