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Industry leaders discussed AI transforming gaming and VFX, highlighting faster production, IP concerns, policy development, and creative opportunities in India.
The topic of discussion at Bengaluru GAFX 2026 was how AI is transforming the VFX and gaming industries. Industry leaders discussed how AI technologies are changing the way content is created by allowing studios to create concept art, early design drafts, game idea iterations more quickly, and immersive worlds before going into full-scale production. These developments help to reduce the production times, improve workflows, and give creative teams more freedom to experiment in the pre-production stage.
AI is not only allowing teams to work at an increased pace within the game development workflow 2026 but has also enabled companies to shorten their overall production timelines. However, there remains great uncertainty surrounding issues relating to ownership and originality regarding AI-created content. Many game developers are still unsure about who owns any IP associated with characters that have been developed using AI tools, particularly when these tools aid in developing the design, writing, or visual elements of the character. Consequently, studios are now being very cautious about how they utilize AI and will clearly articulate their intended use of AI in any project.
Leaders in the industry pointed out that generative AI tools for animation and VFX studios enable small teams to create projects that would have previously required a much larger team. AI has been utilized in assisting creativity and enhancing efficiency, rather than displacing artists. The Karnataka government is considering developing a formalized AI policy to encourage the responsible application of that technology. As a part of the larger overall AVGC-XR sector growth policy for India through 2026, the state is seeking out ways to augment its animation, VFX, gaming, and XR ecosystem through training and job creation. AI has opened many new avenues for growth in both the gaming and VFX industries as the industry continues to deal with the legal and creative challenges presented by the new technologies.
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