In a recent shareholder Q&A, Nintendo ADR‘s (OTC:NTDOY) President Shuntaro Furukawa addressed the issue of generative artificial intelligence (AI) in video game development, a hot topic that has stirred significant debate within the industry.

The Mixed Blessing Of AI

According to IGN, Furukawa acknowledged the potential benefits of generative AI, noting it could be used "in creative ways." However, he also highlighted the risks, particularly regarding intellectual property rights.

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“Generative AI, which is becoming a big topic recently, can be used in creative ways, but we recognize that it may also raise issues with intellectual property rights,” he said.

Nintendo's Stance On Technological Advancements

As Nintendo ( NTDOF ) prepares to unveil its next-generation console, Furukawa stressed the company’s commitment to leveraging technological advancements while maintaining its unique creative identity.

“We have decades of know-how in creating the best gaming experiences for our players. While we are open to utilizing technological developments, we will work to continue delivering value that is unique to Nintendo ( NTDOF ) and cannot be created by technology alone,” he said.

Industry Perspectives On AI

Nintendo’s cautious yet open stance contrasts with the approaches of its competitors. Microsoft Corp. ( MSFT ) is reportedly developing an AI chatbot for Xbox to automate support tasks, including game refunds and subscription issues.

Meanwhile, Sony Group Corp. ( SONY )‘s PlayStation Productions’ head Asad Qizilbash highlighted AI’s potential to enhance player experiences through personalized interactions.

“For instance, non-player characters in games could interact with players based on their actions, making it feel more personal," Qizilbash said. "This is important for the younger Gen Z and Gen Alpha audiences, who are the first generations that grew up digitally and are looking for personalization across everything, as well as looking for experiences to have more meaning.

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