Humans vs AI art: why game studios hire Southeast Asian talent

The game industry has long been an early adopter of artificial intelligence, using it to manage non-player characters, create crowds, and adjust difficulty levels long before chatbots like ChatGPT emerged. Now, AI is being used to write code, produce visual assets, and even generate real-time voice-overs, replacing human workers in the process.

Companies still employ human animators, however, particularly students and recent graduates from Thailand, Malaysia, and Vietnam, who charge significantly less than their Western or Japanese counterparts. The $275 billion gaming industry is a rare exception to this trend, as human-created art still holds value in the eyes of developers and players, despite AI streamlining many aspects of game development.

A May 2023 Morgan Stanley Research report estimated that AI could cut annual gaming costs by $22 billion. Developers now utilize these tools to code, work on early concepts, and automate repetitive tasks, such as drawing "in between" frames that connect key moments in an animation. A September 2023 survey of over 1,300 industry insiders by Japan’s Computer Entertainment Supplier’s Association found that over 85% of Japanese game developers used generative AI to reduce costs and boost growth.

Many studios, from indie start-ups to "AAA" giants, are becoming leaner, using AI for part of the work before commissioning finished artwork from freelancers like James Chaingam, a 19-year-old first-year animation and visual effects student at Chiang Mai University in northern Thailand. Chaingam told This Week in Asia that "consumers still want human art", emphasizing the demand for unique styles, individual creativity, and originality.

Southeast Asian freelancers typically charge between $50 and $300 for video game characters or in-game assets, such as weapons, props, environmental set-dressing, sound effects, and background music, making them an attractive option for cost-conscious studios.

The low prices offered by Southeast Asian freelancers help studios maintain margins in a highly competitive market filled with rivals and games produced affordably through AI. At the same time, indie studios are sprouting up across the region, including Malaysia-based Okakichi, founded by veteran Japanese game developer Yoshiki Okamoto, and Capcom, which boasts an annual revenue of more than $1.2 billion.

Andy Chaisriri, a game designer and lecturer who co-founded the Bit Egg animation, art, and game development studio in Chiang Mai, Thailand, explained that cost is only part of the region's appeal. "A lot of US studios have been shrinking or closing. It's very expensive to have a studio in Los Angeles versus a studio in Bangkok, Chiang Mai, or Kuala Lumpur," he said.

"But people aren't coming here just because it's cheap; they get interesting results. The Thai talent base is strong."

Western "AAA" studios are increasingly heading to Malaysia instead of Thailand due to its English-speaking advantage, while Thai animators often draw inspiration from various sources, including China and the US. Japan's big game studios also send work to the region, building long-term relationships with individual artists based on trust.

Chaisriri noted that generative AI is still behind in creating in-game artwork, as the output often resembles low-quality knock-offs. Relationships play a crucial role in outsourcing creative work, as studios tend to stick with Southeast Asian studios they have previously worked with, appreciating the proven track record and personal touch.

For students like Chaingam, who scrounges by as a freelance artist and animator under the pseudonym "Avomavomy", the fear is that paid roles might vanish before he can fully complete his training and enter the workforce. AI is encroaching on more aspects of game development, from concept to design, and is producing content rapidly at a fraction of the cost, raising concerns about the value placed on artistry.

Chaingam acknowledged the "trust problem" surrounding generative AI, stating that not everyone is comfortable with it. However, he believes AI is creating pressure at the bottom of the industry, leading to a saturated market and lower prices as developers compete for jobs and freelance work.