Sega to Use AI Only in “Appropriate” Development Scenarios

Sega, the Japanese publisher behind the globally known Sonic franchise, says it will use AI in game development, but only in “appropriate use cases,” acknowledging concerns about applying it in creative roles. The company outlined its stance during a Q&A following its Q2 financial results, where executives were asked whether rising development costs would push Sega toward larger productions or more efficient pipelines.

Sega said it will not fully pursue large-scale development and instead aims to improve efficiency. “Rather than fully following the trend toward the large-scale development, we will also pursue efficiency improvements, such as leveraging AI,” the company stated, adding that creative areas, including character creation, continue to face “strong resistance,” and that it will proceed by “carefully assessing appropriate use cases.”

Sega’s AI Plan Focuses on Workflow Efficiency, Not Creative Replacement

Daily Shinko reported that some developers now require art applicants to draw during interviews, after hiring individuals who claimed AI-generated work as their own and “weren’t productive,” leading to internal workflow issues. Upper management at those studios is increasingly questioning whether teams should hire traditional artists or specialists who can work with AI tools.

Meanwhile, Arrowhead CEO, Shams Jorjani, noted that debates often ignore nuance, saying the goal should be removing tasks “nobody wants to do,” not replacing creative work. 

Even Ubisoft’s recent AI teammates experiment showed technical promise but also underscored that significant issues must be resolved before such technology can achieve wider acceptance.

Generative AI’s impact is also reaching cultural sectors. The long-running Yokai Senryu Contest ended because organizers could no longer reliably distinguish human submissions from AI-generated entries, raising broader concerns about originality in open competitions.

Sega’s measured position reflects an industry attempting to balance efficiency with the preservation of human-led creativity.