Based on GamesIndustry.biz, this article explores the increasing legal risks associated with the use of generative AI in video game development. As AI technology becomes more integrated into game creation, from generating dialogue to designing levels, the legal landscape grows more complex. A significant area of concern is intellectual property (IP) rights, particularly regarding ownership of AI-generated content. The question of who owns the IP—the developer, the AI provider, or another entity—is still hotly debated and unclear, especially when AI-generated content closely resembles existing works, potentially leading to copyright infringement.

Additionally, the article highlights data privacy concerns, especially in light of strict regulations like the European Union's General Data Protection Regulation (GDPR). AI systems often require vast amounts of data for training, which can include personal data, making compliance with privacy laws essential. Developers must ensure they have the legal right to use this data and that their practices align with current privacy regulations.

The potential for bias in AI-generated content is another critical issue, raising both ethical and legal questions. If AI outputs reflect biases or stereotypes, developers could face reputational damage and legal consequences. The article underscores the importance of having clear legal agreements that define ownership, liability, and compliance obligations. Developers are encouraged to work closely with legal experts to navigate these challenges, ensuring that their use of AI in game development is legally sound.