Hooded Horse, the publisher behind Manor Lords, has decided against collaborating with studios that employ generative AI technology

Hooded Horse, a game publisher, has declared it will not collaborate with developers utilizing generative AI. In a discussion with Kotaku, CEO Tim Bender expressed that this technology complicates their operations. As part of the company's agreements with developers, the use of generative AI assets is prohibited.

The prohibition includes even temporary content that is not meant to be in the finished product, as Bender emphasized the risk of such assets inadvertently becoming part of the final game, as occurred with Clair Obscur: Expedition 33.

Bender stated, "We encourage developers to avoid using gen AI throughout the development process, even as a placeholder, to prevent any risks of it unintentionally being integrated into the game."

He added, "Due to the potential for these assets to slip through unnoticed, we remain vigilant to ensure they are not included, viewing them as detrimental."

In recent years, AI has been a prominent topic in the gaming industry. While many large firms have embraced AI differently, Nexon's CEO highlighted the widespread assumption that all gaming companies are leveraging this technology. At the same time, Embark Studios confirmed that AI is not used to replace individuals in their projects.

Sega acknowledged opposition to AI, even as it aims to enhance development efficiency, whereas Phil Rogers of Embracer Group recognized AI's capabilities but affirmed the primacy of human creativity. Rockstar co-founder Dan Houser noted his cautious use of AI, describing its current limitations, and voice actor Troy Baker argued against vilifying AI, asserting its inability to create art. Charles Cecil from Revolution Software reflected on the high costs associated with employing AI for a Broken Sword remake.

Platforms like Steam apply AI usage tags to games, a practice criticized by Epic's Tim Sweeney as illogical. The US Copyright Office revealed plans in 2025 to rule that generative AI creations lacking human creativity are ineligible for copyright protection.

In a conversation with GamesIndustry.biz, NYU professor Joost van Dreunen expressed skepticism about AI's appeal, indicating a general disinterest in low-quality outputs from these systems.