GDC 2025: Keywords Studios Explores What’s Needed to Cross the Chasm With Generative AI in Games

As the dust settles from GDC 2025, one thing is clear: generative AI is no longer a distant prospect—it’s on the verge of mainstream adoption. At this pivotal moment in the technology adoption lifecycle, Keywords Studios offers a grounded perspective on what it will take to transform AI from an experimental tool to an essential part of game production.

Stephen Peacock, Head of Games AI at Keywords Studios, joined discussions in San Francisco at the Game Developers Conference (GDC)  to unpack the realities facing developers as they stand at what Geoffrey Moore famously dubbed “the chasm”—the critical point between early adopters and the early majority.

AI in Gaming: On the Verge of Transformation

While machine learning has already embedded itself into gaming operations—from player retention to analytics—its impact has been largely evolutionary. Generative AI, however, holds the potential to shift production itself.

“Generative AI is different – it’s the AI that production teams need. That’s why seeing its rapid advancement to the chasm’s edge in just the past year is so exciting”

To make the leap to mainstream use, Peacock notes, AI must move beyond buzzwords. Developers—especially those in the early majority—are looking for tools that integrate smoothly into current workflows and demonstrate clear returns.

Why the Early Majority Think Differently

Drawing on Moore’s adoption model, Peacock explains that pragmatist developers differ sharply from early tech enthusiasts:

• They’re focused on real-world functionality, not flashy prototypes
• They prefer incremental improvements to disruptive shifts
  
• They demand evidence of ROI before making a change
  
• They need AI that fits into, rather than upends, established workflows
  

These themes resonated throughout GDC 2025, where the mood around AI had matured. There was far less appetite for theoretical showcases, and far more interest in tested, efficient implementations.

“A perfect illustration: Last year’s startups boasted about AI that could ‘generate animations from prompts’, implicitly asking “who needs mocap?”. This year, the narrative has shifted. Rather than replacing traditional methods, motion capture vendors have begun embedding AI into their workflows, streamlining post-capture cleanup and enhancing efficiency without overhauling existing systems.

Funding Hype vs Studio Needs: The AI Startup Dilemma

Despite investor enthusiasm, many generative AI startups are struggling to gain lasting traction in game development.

“Perhaps the greatest threat during this crossing comes from investors, who often push for sizzle and inflated impact estimates. While startups chase funding with flashy demos and big promises, studios want reliable solutions to specific problems. This misalignment explains why many startups struggle to gain traction despite initial excitement.”

This disconnect between financial backers and the day-to-day needs of development teams continues to hinder meaningful adoption.

Governance and Shadow AI: A Growing Concern

One of the most urgent issues raised at GDC was the rise of ‘shadow AI’—unofficial tools quietly integrated by developers due to a lack of formal strategy from leadership. This ad-hoc adoption is creating both operational risk and strategic confusion.

“As we prepare to cross the chasm, studios need partners who understand both the technology and the organisational challenges of this transition.” 

Looking Ahead: Practicality Over Hype

For generative AI to move into the mainstream, Peacock emphasises the need for proven tools, case studies, and shared best practices. The journey won’t be driven by innovation alone, but by collaboration and realistic implementation.

“On the other side of this chasm is a healthier, more productive industry reinvigorated by new technologies that increase our ability to delight players profitably. The shift from theoretical possibility to practical implementation we’ve seen at GDC this year suggests we’re prepared for this crossing, but it will require collaboration, patience and persistence.

The gaming industry has always been at the forefront of technology adoption. If we work together – sharing success stories, developing standards, and focusing on pragmatic solutions – we can make it to the other side.” 

About Keywords Studios

Keywords Studios is an international provider of creative and technology-enabled solutions to the global video games and entertainment industries. Established in 1998, and now with over 70 facilities in 26 countries strategically located in Asia, Australia, the Americas, and Europe, it provides services across the entire content development life cycle through its Create, Globalize and Engage service lines to a large blue-chip client base across the globe.