Gaming industry could unlock $22 billion in profits on AI-driven cost cuts: Morgan Stanley

Advanced artificial intelligence tools could help cut down video game ​developing costs by nearly half, potentially ​unlocking about $22 billion in annual profits for game makers worldwide, ​Morgan Stanley analysts said.

The adoption of AI tools to automate tasks such as creating gaming environments, generating dialogue and testing software could help shorten production timelines and reduce costs, helping lift margins ‌over time, the ⁠brokerage said ⁠in a note dated Tuesday.

However, it added, gains are unlikely to be distributed evenly across the ​gaming ecosystem.