Source: Clyde & Co

Clyde & Co provides a detailed analysis of the pressing legal issues that arise from the integration of AI-generated content into the video game industry. A primary focus is on intellectual property, particularly the question of copyright ownership. The article explores the ambiguity surrounding whether AI-created assets, such as characters, landscapes, or dialogue, can be protected by copyright, and who would be considered the author—the AI developer, the game studio, or the user prompting the AI. It also addresses the substantial risk of copyright infringement if an AI model is trained on existing copyrighted materials without proper licensing.

Furthermore, the piece examines the complex issue of liability. When AI is used to generate dynamic or user-influenced content within a game, it can potentially create material that is defamatory, discriminatory, or otherwise illegal. This raises the critical question of who is legally responsible for such content. The analysis suggests that game developers must carefully consider these risks and implement robust contractual agreements with AI providers, as well as content moderation systems, to mitigate potential legal exposure in this rapidly evolving technological landscape.