Keywords Studios PLC (AIM:KWS, OTC:KYYWF), the video game developer, believes that the use of AI in its industry will provide a net positive, according to a keynote from Thursday.
The company, which helps other video game developers create all manners of content, argued artificial intelligence can help push projects down more complex paths while increasing the frequency of new game releases.
“There has been a massive demand/supply imbalance in the industry for years,” said analysts at Liberum, adding that “generative AI tools help ease the burden on developers and allow individuals to focus on creativity.”
Yet, there are still some aspects holding back the use of technology in the industry for now.
Firstly, the tools are not quite at the level required for video games, many AI generative models can create 2D images – DALL-E 2 for example – but it hasn’t been possible for 3D content yet.
There are also barriers in the form of IP, legal and data issues, as some publishers have asked Keywords to avoid using AI tools in fear of content being leaked.
Despite this Keywords has begun investing in AI tools which include Kantan AI, a productivity tool for localisation; Helpshift, a chatbot for player support; and Mighty Games, software that helps analyse the quality of developers' code.
The studio expects the use of these tools, plus future AI innovations will help improve aspects of games like the scale and detail of non-playable characters (NPC).
Keywords noted that it would still use human artwork but would use AI to help its artists.
The same is targeted for voice actors, who are still expected to be hired for main roles but for NPC’s AI could be used to create a wider range of characters.
Liberum rate Keywords Studios a ‘buy’ and target a 3,400p share price – more than a 32% upside to the current value.