Is AI In Gaming Overhyped? Cloud Executive For Tech Giant Weighs In: 'Large-Scale Application Will Still Take Some Time'

Liang Chen, the general manager of Tencent Holdings‘s TCEHY Tencent Cloud’s internet industry department, has expressed skepticism about the widespread use of artificial intelligence in the gaming industry.

What Happened: Chen, who is responsible for enhancing game manufacturers’ productivity and efficiency with technology, including Tencent’s popular mobile game Honor of Kings, stated that the use of generative AI in gaming is still in its early stages, reported CNBC on Monday.

He mentioned that while AI has been used by gaming companies for functions like pattern recognition, the effective use of generative AI comes with high costs.

Chen, speaking at the annual ChinaJoy gaming conference in Shanghai, said, “My personal view is that large-scale application [of generative AI] will still take some time.” He also highlighted the challenge of balancing costs and results to scale the use of AI in gaming.

Despite the potential of generative AI to understand and generate content in a human-like manner, Chen believes that the industry is still far from widespread application. He cited the need to train generative AI to provide historically accurate answers when a user interacts with a virtual character inside a game set several hundred years ago as an example.

Chen also mentioned that Tencent is using its in-house developed models, such as the Hunyuan AI model, for such functions. He declined to comment on NVIDIA Corp. NVDA, whose most advanced chips are prized for training AI models, due to the U.S. restrictions on exporting these semiconductors to China.

Despite the challenges, Tencent’s AI Lab announced a tool called GiiNEX Game AI Engine in March, which incorporates generative AI for developing city scenes in games. Chen also revealed that Tencent has been using AI tools for 3D rendering, reducing the time spent on this step from at least five days to around two hours.

Why It Matters: The cautious stance of Tencent Cloud aligns with broader industry sentiments. In April, Sir Demis Hassabis, co-founder of Google DeepMind, expressed concerns about the excessive hype surrounding AI, comparing it to the crypto buzz. He warned that this hype could overshadow genuine scientific progress.

Additionally, despite the market excitement, only a small fraction of U.S. firms have integrated generative AI into their production processes. A Goldman Sachs report from July revealed that merely 5% of U.S. companies are utilizing generative AI for production, indicating that the technology’s practical application is still limited.

The AI sector is also facing a reality check in 2024. According to Wolfe Research, the industry may be approaching a “trough of disillusionment” as investors demand tangible returns on their AI investments.

Public figures like Jon Stewart have also criticized the lofty promises made by tech leaders, highlighting the gap between AI’s potential and its current capabilities.

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