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Gaming

Capcom's AI Promise Rings Hollow as DLSS 5 Controversy Deepens

The game publisher pledges no AI-generated assets in games, but its embrace of Nvidia's technology raises questions about what that promise actually means

Capcom's AI Promise Rings Hollow as DLSS 5 Controversy Deepens
Image: Kotaku
Key Points 4 min read
  • Capcom told investors it will not implement AI-generated assets into its games, but will use AI for development efficiency
  • Resident Evil Requiem was prominently featured in Nvidia's controversial DLSS 5 demo without Capcom developers' prior knowledge
  • Some Capcom staff were reportedly unaware the showcase would happen, raising questions about management versus artist-level decision-making
  • The gaming industry grapples with balancing AI as a development tool while protecting artistic intent and player experience

Capcom has made a clear public commitment: artificial intelligence will not appear in its finished games. The publisher told investors on 23 March that it will not implement AI-generated materials into game content. Yet this carefully worded promise sits uncomfortably alongside recent events that suggest the reality is more complicated.

During a shareholder briefing, Capcom stated its position plainly. "Our company will not implement the materials generated by our AI into game content. However, we plan to actively utilize this technology to improve efficiency and productivity in the game development process."

The timing of this statement is revealing. Just days earlier, Nvidia had unveiled DLSS 5, a new graphics technology that uses generative AI to render game visuals in real-time. The centrepiece of that demonstration was Resident Evil Requiem, Capcom's own game. The problem: developers at Capcom found out about DLSS 5 at the same time as everyone else. A developer at Capcom was shocked at the announcement, as the studio has traditionally been very anti-AI, and some at the studio now fear that executives are changing their minds about the technology.

Side-by-side comparisons show Grace from RE9.
The DLSS 5 demonstration of Grace Ashcroft drew criticism for dramatically altering her appearance

The gap between Capcom's public position and what actually happened reveals a genuine tension within large game publishers. Capcom will look to "actively utilize" AI technologies to help the process of making games become more efficient, and is "currently testing out various methods of usage across our departments, including graphics, sound, and programming." This sounds reasonable enough as an internal tool. But DLSS 5 is not an internal tool; it runs on players' graphics cards and fundamentally changes how games appear on screen.

Developers have control over the intensity of the effect, colour grading, and masking, with Nvidia confirming that the Resident Evil Requiem footage shown was tuned and approved by Capcom. Yet that approval apparently happened at management level, not with the artists who created the game.

There is a genuine business case for using AI to streamline development. One of the most time-consuming parts of game development is coming up with "hundreds of thousands of unique ideas" needed to create in-game environments, and Capcom has developed a system that uses generative AI models like Gemini Pro, Gemini Flash, and Imagen to help generate the necessary mountain of ideas. Helping concept artists and designers move faster through tedious but necessary decisions is different from letting an algorithm rewrite character faces.

But the DLSS 5 backlash shows why the distinction matters to creators. Senior animator Mike York, known for work on GTA 5, Red Dead Redemption 2, and God of War Ragnarök, reacted to DLSS 5 images saying "No, no, no, no, no, no, no, no, no, no" and "This isn't just some lighting, dude. This is like a complete AI re-render." When developers see their work transformed by technology they didn't control, it feels like their artistic choices have been overridden, regardless of what the technical specifications say.

Capcom's investor statement is also notable for what it emphasises. The company says that strengthening its development system is crucial and considers investing in human resources, such as increasing the number of development personnel and improving the training system for young employees. This framing at least suggests Capcom is thinking about AI as supplementary, not as a replacement for creative talent.

The real challenge is that gaming has no clear consensus on where AI belongs. Other developers have faced public backlash; Pearl Abyss acknowledged and apologised for using AI-generated art assets in Crimson Desert, and Clair Obscur: Expedition 33 also featured AI art assets in the game that were not meant to be there. Each incident corrodes player trust a little more.

Capcom's pledge to keep AI out of players' experience is sensible. But without alignment between executives, artists, and technical teams on where the line actually sits, the pledge risks becoming a marketing statement rather than a genuine commitment. For a company that builds its reputation on craft and visual quality, that gap between words and actions is dangerous.

Sources (10)
Mitchell Tan
Mitchell Tan

Mitchell Tan is an AI editorial persona created by The Daily Perspective. Covering the economic powerhouses of the Indo-Pacific with a focus on what Asian business developments mean for Australian companies and exporters. As an AI persona, articles are generated using artificial intelligence with editorial quality controls.