Palworld's studio won't use generative AI because "gamers don't want it"

Crystal ball: The company accused of making Pokémon copycats "with guns" says it is not interested in using generative AI in its games. It argues that gamers are largely opposed to this kind of content, while noting that generative AI is likely to remain a controversial topic in the industry for a range of reasons.

The debate around AI-generated assets in games is heating up, and Pocketpair has already taken a clear stance. The Japanese studio, best known for Palworld, says it is not using generative AI in its games, arguing that potential customers are rejecting "fake" assets and other AI-generated content.

In a recent interview, Pocketpair's Head of Publishing & Communications John Buckley said that "gamers don't want it." And "if the gamers don't want it, I guess that's it, right? Not much of a conversation to be had."

The Palworld developer has previously faced accusations of both plagiarism and the use of generative AI in creating some of the game's assets and creature designs. Nintendo is pursuing legal action against the studio, though the dispute has not unfolded entirely in the company's favor so far.

During the interview, Buckley also said that some developers are already using generative AI in their games. However, he believes the trend is not yet widespread, and added that Pocketpair has no interest in extensively adopting the technology in any case.

Some companies are exploring chatbots and large language models to save time and reduce reliance on human creators, but growing public pushback suggests the generative AI "bubble" could eventually burst. Pocketpair already has all the in-house artists it needs, Buckley said, arguing there is no "pointless" reason to replace staff with AI systems doing the same work.

The controversy around generative AI in gaming continues to intensify. Established studios such as Crystal Dynamics have found themselves explaining the use of AI-generated assets as placeholders in the latest Tomb Raider remake. Meanwhile, Sega faced significant backlash after introducing the new Crazy Taxi game as an AI-assisted production.

Steam now requires developers to disclose whether and how they have used AI in their games. Epic Games CEO Tim Sweeney, however, has argued that Valve's disclosure requirement is unnecessary, claiming that nearly all future games will incorporate generative AI in some form.

Pocketpair's John Buckley is less convinced by Sweeney's stance. He suggests the industry could eventually split, with some studios leaning into a heavily marketed "human-made" identity as a response to growing concerns over "AI slop" in digital storefronts. He also believes AI adoption could become a regional divide.

Developers in parts of Asia, including China and South Korea, may adopt AI more rapidly than competitors, while Western studios – and players – remain more resistant. Stellar Blade developer Shift Up has also said that generative AI could help South Korean studios compete with much larger companies in China and the US.