Sega is stepping into the AI ring cautiously. The company confirmed it will begin using AI tools in game development to reduce production costs, but stressed it will limit usage to “appropriate use cases” that don’t interfere with creative decisions. That’s no accident. The message is aimed squarely at fans and creators wary of automation eating into artistry.

Sega’s AI plans stay behind the curtain

In its Q2 2026 financial report, Sega Sammy Holdings answered investor questions about the rising cost of modern game development. Executives admitted that large-scale production is becoming harder to justify, and flagged AI as a way to speed up internal processes.

But there was a clear caveat: “AI adoption can face strong resistance in creative areas such as character creation.” That line wasn’t offhand. It’s a direct signal that Sega won’t lean on AI for the parts that define their franchises the storytelling, characters, and art that make games feel alive.

Fans want heart, not shortcuts

The pressure is real. Despite launches like Sonic Racing: Crossworlds and Football Manager 26, Sega’s recent titles haven’t hit sales expectations. Core franchises like Yakuza and Persona remain popular, but repeat purchases fell short, and AA-tier titles are getting boxed out by big-budget juggernauts and clever indie hits.

To stay competitive, Sega is eyeing efficiency without alienating its loyal base.

Not all studios are being this careful

While Sega takes a cautious stance, others are already dealing with fallout. One unnamed Japanese studio reportedly tightened hiring processes after being burned by “AI frauds” applicants using AI-generated portfolios they couldn’t actually replicate on the job.

As a result, some teams now require artists to draw live during interviews. It’s a sharp contrast to Sega’s slower, more PR-conscious rollout.

Sega’s AI focus: What counts as “appropriate use”?

The company hasn’t outlined every area AI will touch, but based on its language, expect it in places like:

• Bug tracking and debugging tools
• Asset sorting and file management
• Performance testing and optimization
• Internal pipeline automation
• Non-storyline QA processes

This isn’t about replacing writers or artists. It’s about saving time where it won’t cost creativity.

Sega walks a tightrope as new titles approach

With upcoming releases like Yakuza Kiwami 3 & Dark Ties and the mysterious Super Game project set for March 2026, Sega is trying to boost profitability without triggering another industry-wide AI backlash.

It’s a fine line. AI may help speed things up, but the fans can always tell when the heart’s missing.