The debate over generative AI in game development just got a lot more heated. Hooded Horse, the indie publisher behind the massive hit Manor Lords and other strategy gems like Cataclismo and Endless Legend 2, is taking a firm stand against the technology. They're not just avoiding it themselves, they're refusing to work with any developers who use it.
In a recent interview with Kotaku, CEO Tim Bender didn't hold back on his frustration. He explained that generative AI has become a real headache for the team.
“If I sound frustrated, it’s because, like, honestly, all this thing has done is made our lives more difficult.”
To make sure it stays out, Hooded Horse now includes a clear clause in their publishing contracts: no generative AI assets allowed. And it goes even further than just final content. They won't tolerate it even as temporary placeholders during development.
Bender pointed out the risk of something slipping through. He mentioned cases where placeholder AI art has accidentally ended up in released builds, like what happened with Clair Obscur: Expedition 33.
"We’ve gotten to the point where we also talk to developers, and we recommend they don’t use any gen AI anywhere in the process because some of them might otherwise think: 'Okay, well, maybe what I’ll do is for this place, I’ll put it as a placeholder,' right?"
He added that developers might plan to replace it later, but mistakes happen.
"But if that gets done, of course, there’s a chance that that slips through, because it only takes one of those slipping through in some build and not getting replaced or something."
"Because of that, we’re constantly having to watch and deal with it and try to prevent it from slipping in, because it’s cancerous."
For Bender, this isn't just about quality or player backlash. It's an ethical issue at its core. He believes the tools are often trained on artists' work without permission, and that makes it a moral problem rather than a simple PR one.
"When it comes to gen-AI, it’s not a PR issue, it’s an ethics issue."
Hooded Horse employs full-time artists for their marketing materials, and Bender said bringing in AI would feel like a betrayal to them.
This stance comes at a time when generative AI is popping up more and more in the industry. Big players have jumped in with varying levels of enthusiasm. Nexon's CEO (parent of Embark Studios, behind Arc Raiders which uses AI for some voice lines) has said it's safe to assume most companies are using it in some way. Embark has stressed they're not replacing people with AI, though.
Sega has talked about using it to boost efficiency while noting there's plenty of pushback.
Embracer Group's new CEO Phil Rogers called AI a powerful tool but made it clear that human authorship comes first. Rockstar co-founder Dan Houser is experimenting with it but says it's not the miracle some hype suggests. Even voice actor Troy Baker has pushed back against demonizing AI, pointing out it can't truly create art. On the flip side, Revolution Software's Charles Cecil called his own use of AI in a Broken Sword remake "an expensive mistake."
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