Krafton, the South Korean game studio behind PUBG, is shifting to an 'AI-First' strategy, integrating artificial intelligence deeply into its operations, development, and management systems.

The company is investing approximately $70 million to build a GPU cluster designed to automate AI workflows and support advanced AI research, including agentic AI systems capable of complex reasoning.

CEO Kim Chang-han emphasized the goal of establishing an 'AI First Culture' that automates tasks, allowing employees to focus on creative and complex problem-solving.

Krafton plans to embed AI into various aspects of its business, including management, research, and potentially in-game content like art, music, or writing, which could be controversial given the themes of upcoming titles like Subnautica 2.

The company aims to develop an integrated AI platform by late 2026, supporting enterprise-wide AI operations, data standardization, and automated workflows, aligning with Korea's national digital transformation efforts.

Starting in 2026, Krafton will allocate around KRW 30 billion annually to help employees utilize AI tools, expanding AI integration across management and organizational processes.

This strategic shift follows Krafton’s recent legal disputes and disappointing sales at titles like The Callisto Protocol, suggesting AI is part of an effort to reshape its industry position.

The move coincides with broader industry trends, including significant investments in AI, which are projected to reach $375 billion in 2025 and $500 billion in 2026, despite skepticism about an AI bubble.

The rise of generative AI tools has sparked concerns in creative sectors, with critics arguing that such tools could replace professional artists and use their work without permission.

Other gaming giants like Blizzard are also adopting AI to assist developers, while layoffs at companies like King highlight the controversial impact of AI on employment.

Data shows an 800% increase in games disclosing AI use this year, reflecting rising adoption and transparency in the industry.

Krafton aims to lead AI innovation in gaming, promoting growth opportunities and expanding creative initiatives centered on enhancing player experience.