SEGA plans to incorporate AI into its game development process, but the company says it will be careful about where and how it uses the technology.

During a Q&A session following its Q2 financial results, SEGA executives addressed questions about rising development costs and whether the company would pursue larger-scale projects or focus on more efficient production methods.

The company confirmed it will pursue efficiency improvements, including AI tools, rather than simply following the industry trend toward bigger budgets and team sizes. However, SEGA acknowledged that generative AI remains a controversial topic, especially when it comes to creative work like character design and artwork.

“Rather than fully following the trend toward large-scale development, we will also pursue efficiency improvements, such as leveraging AI,” SEGA stated in its official response. “However, as AI adoption can face strong resistance in creative areas such as character creation, we will proceed by carefully assess appropriate use cases, such as streamlining development processes.”

The announcement comes as AI use in game development becomes increasingly common across the industry, though it has created tension in creative fields.

Recently, a chief graphic designer at an unnamed Japanese studio said that they have encountered problems after hiring applicants who submitted AI-generated portfolios but lacked genuine artistic ability. The designer also noted that management has begun questioning whether studios need to hire traditional artists when AI tools are available, or if they should focus on hiring people skilled at using AI instead.