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EA admits that embracing AI could lead to fans losing confidence in the company and its brands.

Take-Two, EA Warn Of "Reputational" Risks Involving AI - GameSpot

EA admits that embracing AI could lead to fans losing confidence in the company and its brands.

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Take-Two and EA have quietly slipped AI warnings into their latest 10-K filings, flagging that using generative AI in game development could spark “social and ethical issues,” lead to legal headaches and even erode fan trust. They’re doing it because public companies must list any material risk—from hurricanes to worker strikes—so investors know what could go sideways.

Industry watchers like Niko Partners’ Daniel Ahmad point out that nearly every big studio (yes, even Nintendo) is experimenting with AI, mostly at the concept stage. Take-Two’s boss Strauss Zelnick says these tools will boost efficiency but never replace human creativity, while EA and Microsoft foresee short-term layoffs followed by long-term job growth. Both giants have recently cut hundreds of positions, though it’s unclear how much AI played a role.

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