GDC State of the Game Industry 2026: 40% of developers use generative AI at work

The latest State of the Game Industry report from the Game Developers Conference (GDC) says 40% of developers are using generative AI in their work. That is 4% more than in the previous report, and survey project lead Beth Elderkin notes the rise is smaller than last time. Among those using the tech, 57% use it for text generation, research, early prototyping, coding and presentations. Use is highest in business operations and services, mobile-only studios and free-to-play development.

Opinion on AI has barely moved: 55% of respondents say it is having a negative impact on games, up 1% year-on-year. Pressure to use it differs by studio type, with 27% of AAA workers feeling encouraged or pressured to use generative AI, against 9% of indie developers. Elderkin told GamesIndustry.biz that people now know the technology and how they want to use it, or whether they want to use it at all.

On jobs, 33% of respondents have been laid off in the last 24 months, and around half said their company had conducted layoffs. 68% of AAA staffers say their studio has cut jobs, compared with 35% at more established studios and 14% at younger indies. Of those made redundant, 54% have not found another job, and 25% say they have applied for at least 100 jobs. On funding, 50% of respondents say they turned to self-funding, often through contract work and co-development. Elderkin says publishers expect more before financing a game, and that private equity investment has become more reserved than during the pandemic.

PC leads platforms, with 81% of respondents working on their upcoming project for it. PlayStation 5 is at 45% and Xbox Series X/S at 37%. 10% are working on projects for the next PlayStation console and 8% for Xbox's upcoming Project Helix. Work on VR, AR and mixed reality projects fell from 8% to 3%. Elderkin says Meta's changing focus could be part of the reason, alongside a lack of new announcements in the field.

In engines, Unreal came in at 35% and Unity at 28%, down 7% and 2% respectively, while 23% of respondents said they use a proprietary engine. 86% of developers have worked over 40 hours in a week, 8% report mandatory overtime, and 65% say their job has hurt their mental health. 63% say the overwork could have been avoided, citing poor planning, project changes and leadership.

Among US-based respondents, 15% are in a union, up 3%. 80% support unionisation in the industry and 55% are interested in joining, a 7% drop. Elderkin says that drop came from more non-members who are not interested in joining, not from more people already being in unions. She sees more resilience this year, with more respondents, particularly students, saying they plan to make their own games or start their own studios.