GDC State of the Game Industry report: 40% of developers are using generative AI for work

According to the Game Developers Conference (GDC) State of the Game Industry report, 40% of developers are utilizing generative AI in their work, marking a 4% increase from the previous report. Generative AI is most popular among business operations and services, mobile-only studios, and free-to-play developers. However, 55% of respondents reported that AI has a negative impact on games, a 1% increase from the previous year.

The report also revealed that 33% of developers have been laid off in the past 24 months, and half of those affected said their company conducted layoffs. Among AAA workers, 27% feel encouraged or pressured to use generative AI, while 9% of indie developers express the same sentiment. In terms of funding, publishers are now expecting more from developers before providing financing, with a shift towards private equity investments becoming more reserved.

When it comes to platform preferences, PC remains the dominant choice for developers (81%), followed by PlayStation 5 (45%) and Xbox Series X/S (37%). The number of developers working on virtual reality, augmented reality, and mixed reality projects has declined, from 8% to 3%. This decrease may be attributed to the changing focus of Oculus owner Meta and the lack of new announcements in the VR field.

Engine usage saw a decline for Unreal and Unity, both down by 7% and 2%, respectively. Meanwhile, 23% of respondents are using proprietary engines. The industry continues to grapple with issues such as crunch, with 86% of developers working over 40 hours a week, and 65% reporting a negative impact on their mental health due to overwork.