Industry leaders discuss how genAI will impact web3 games

Welcome to the November edition of BlockchainGamer.biz’s regular Mavens group. If you’d also like to join the discussion, please contact [email protected]

What impact do you think AI will have on web3 games?

Tony Pearce  Co-founder, Reality+

I believe AI has the potential to revolutionize web3 games. At its core, web3 focuses on decentralization and digital ownership, and AI can play a key role in managing digital assets such as in-game currencies, NFTs, and resources in a balanced and transparent way. By adjusting supply and demand, detecting suspicious activity, and even recommending trades or upgrades, AI can help maintain a stable, player-driven in-game economy.

With thoughtful integration, AI can enable web3 games to evolve into complex, player-controlled worlds where users have true ownership and influence over their experiences, assets, and community dynamics. Additionally, AI-driven non-playable characters can be designed to be more interactive, adaptive, and capable of learning from player actions, adding depth and realism to the gaming experience.

Mike Levine – Founder, Mystic Moose

AI is about to revolutionize web3 games and all of gaming, making characters more than just scripted NPCs – they’ll remember, adapt, and truly connect with players. In a world where immersion is everything, AI can bring games to life in unpredictable, deeply personal ways.

We’re excited by these possibilities and are already exploring how to make this vision a reality for Planet Mojo and beyond.

The goal is crafting AI characters that can “see” the world, “feel” connections, and create their own narratives alongside the player. Players will experience and create their own virtual gaming companions, alive with their own quirks, memories, and aspirations.

Web3 games allow these assets to be live on decentralized networks, ensuring data transparency and autonomy. As AI’s role in our society grows, crypto will play a critical role ensuring AI networks are not owned and controlled by large centralized corporations.

Rebecca Liao  Co-founder and CEO, Saga

AI already has heavily infiltrated the gaming ecosystem and is being used in a significant way, the general public just isn’t hearing about it because it’s happening behind the scenes while games are developed.

AI has the potential to impact everything from the backend side of gaming, from the ability to create more interesting gameplay and NPCs to significantly cutting down on development time. 

For web3 games specifically, I think AI will open a lot of doors for game developers in the industry, particularly around the use of AI agents onchain for NPCs. The ability of small dev studios to harness this tech in a meaningful way has accelerated significantly. A critical mass of Saga games have already introduced these agents, and we would not be surprised if almost all our games have AI agents by next year. 

Robby Yung  CEO, Animoca Brands

I think AI will have ramifications in web3 games in a wide variety of ways. Most-obviously, we’re already seeing a big impact in the development process whereby generative art tools of all kinds can now allow designers to supercharge their efficiency (and creativity).

Beyond that, we’re also seeing tools that facilitate the creation of AI agents with on-chain wallets (like gnosis safes) that allow these agents to transact on our behalves, and this is just the first step in automating aspects of gameplay (i.e. farming resources). 

Sam Barberie  Head of strategy and partnerships, Horizon Blockchain Games

Like almost any vertical, AI’s potential in web3 gaming is a mixed bag of trash and good, and I think web3’s influence on AI is actually the more interesting idea to contemplate.

The web3 space has been buddy buddy with gen AI since early days, with many early NFT collections based on gen AI imagery: most of it was complete garbage from lazy creators who saw AI as an easy way to make a quick buck. Many inexperienced web3 game teams use AI as a way to fast-track sloppy development so they too can launch a tap-to-earn bland-fest on Telegram to pump their token debut. As with traditional game development, we’re all still waiting to see any AI-created game make a dent in the market, and I think it’s prudent for game developers to consider whether AI will help them make a better game, or whether it’ll just help them make a terrible game faster. 

I do think there are extremely interesting use cases at the intersection of AI and web3. For example, how about a game whose level design, content, and narrative procedurally adapts to a player based on the items in his or her wallet? Web3 enables a game to learn from, and adapt to, players in a way that no game ever could before. Can AI be used to optimize monetization for developers by offering dynamic pricing based on a user’s wallet’s spending power and transaction history? 

Web3 is the one technology that is going to harness and reign in AI.

Sam Barberie

In reality, I think web3 is the one technology that is going to harness and reign in AI. In a world where anyone can make anything based on anything, provenance and proof become the most important currencies, and only the blockchain allows for that. Game developers worried about the usage of their IP should take steps to emblazon that on-chain now, ensuring that there is a queryable record of who created what. 

Ron Bodkin Founder, Theoriq

We believe AI Agents are set to “change the game” in web3. We envision them acting like personal gaming assistants, who will simplify user experiences and automate repetitive in-game tasks – leading to a more immersive and enjoyable gameplay experience.

By letting AI Agents handle the heavy lifting of in-game mechanics, developers can focus on using other tools like AI Driven NPCs that could generate dynamic and personalized storylines.

The real magic happens when AI Agents start collaborating and automatically execute in-game trade strategies, allowing users to benefit from optimized performance while staying fully engaged in their gaming journey. DeFi integrations will further elevate the gaming experience, attracting new players and boosting game revenue. 

As this technology evolves, we anticipate even more innovative applications that will drive growth and adoption in the on-chain gaming space.

Kevin Rose  CMO, Dacoco

AI will have a huge impact on all games, not just web3. In the future there will be no such distinction as “web3 game”, it will simply be between games that have the ability to move back and forth from in-game item to currency and games that do not. But regardless, AI makes smaller teams more powerful. From coding, to game design, all the way to cinematics, AI is going to short circuit game development to the benefit of the player. 

What I really look forward to is when AI becomes a player in the game itself. NPC will become an outdated term, replaced by APC or “artificial player character”. There won’t be scripts  written for stories but rather guidelines that AI characters will use in real time to react to player choices. Replayability will take on new meaning in a world of AI driven character stories. 

Alexander Goldybin – Founder and chairman, iLogos

AI has a broad range of applications, and its potential is equally transformative for both web2 and web3 games. The fundamentals remain the same: smarter workflows, adaptive gameplay, and enhanced content creation.

What sets web3 apart, however, is its decentralized architecture, which opens up entirely new possibilities for AI. Decentralized systems allow AI to not only optimize development but also enhance blockchain-specific features like token economies, player-governed systems, and dynamic in-game assets. In addition, in the future, one can imagine AI agents being part of web3 ecosystems.

At iLogos, we’ve seen this in action with tools like Code Maestro, an AI coding co-pilot we developed specifically for game developers. It simplifies development pipelines, accelerates iteration cycles, and bridges the gap between creativity and technical execution – whether for traditional games or blockchain-based ecosystems.

In the end, AI’s impact on web3 will be massive, building on its web2 capabilities and adding new dimensions through decentralization. It’s a natural evolution for how we develop and experience games.

Alan Orwick Co-founder of Quai Network and CEO of Dominant Strategies

Accelerated Game Development: AI’s integration into game design allows for rapid auto-generation of entire game environments, cutting down development time significantly.

Personalized Experiences: AI’s capacity to adapt and learn can make game environments in web3 more responsive to individual players. AI can personalize in-game content based on user behavior, creating dynamic, ever-evolving experiences that reflect a player’s unique preferences.

Empowering Community-Driven Development: With AI handling routine or repetitive tasks, web3 games can evolve to be more community-driven. Players and developers can focus on creativity, governance, and innovation rather than being bogged down by basic development tasks. This could make games more collaborative and reflective of the values of decentralized platforms.

Cost Efficiency for Indie Developers: As AI continues to improve, it will enable smaller studios or individual creators to create complex games that were previously only feasible for large studios.

Quinn Kwon  Head of web3 strategy, Delabs Games

From a game development perspective, AI is transforming the entire gaming landscape, including web3, by streamlining processes, automating asset generation, and utilizing advanced tools to create detailed game environments with greater efficiency. AI-driven games like AI Dungeon, for example, showcase how AI can craft dynamic, player-driven narratives, enabling users to directly influence storylines through their choices. Similarly, AI Arena demonstrates how AI can be harnessed to design, train, and engage AI-powered NFTs in global PvP arenas, highlighting AI’s role in creating intelligent, responsive characters that enhance competitive gameplay.

From the user experience side, AI elevates gameplay by delivering personalized interactions, adaptive storylines, and NPCs that respond intelligently to player actions, creating a deeply immersive experience. Additionally, AI simplifies character and item customization, allowing players to personalize their gaming journey with unique characters, skins, and items. Within the decentralized web3 space, AI supports transparency and fair rewards for user-generated content via blockchain, fostering a collaborative, player-centered ecosystem where creativity thrives.

Ultimately, AI technology enables both developers and players to interact in a richer, more interactive, and rewarding gaming environment, making AI an invaluable asset to the future of gaming.

Jack O’Holleran CEO and co-founder, SKALE Labs

AI and web3 are technologies that are meant to be paired together and create massive synergies when coupled together intelligently. 

On the development side, AI enables dynamic, adaptive game environments that evolve based on player actions. This is a major leap from static game worlds to intelligent ecosystems where narratives and challenges respond uniquely to each player.

Combined with blockchain, AI enhances core web3 principles like decentralization and player empowerment. Blockchain ensures true digital ownership of in-game assets, while AI can personalize these assets, such as customizing characters, items, or even worlds based on individual player preferences. Together, they create richer, more meaningful player-driven economies where value creation isn’t limited to developers but shared equitably with the community.

AI also amplifies transparency and fairness in web3 gaming. AI-generated assets on web3 platforms enhance player ownership and foster rarity, adding unique economic layers that can enrich game economies and player engagement.

Christina Macedo  CEO, PLAY

AI has the capacity to uniquely improve gaming engagement and innovation. 

For players, AI can develop game mechanics and environments that adapt based on players’ actions, responding and evolving in real-time to adjust to different gaming styles, preferences, and strategies. This offers personalised experiences that helps foster a sense of ownership and control, which is essential to the decentralized, community-oriented nature of web3. 

For developers, it enhances our platform that’s committed to making web3 game development accessible – whether you’re a midcore/major studio or an indie creator. When we let AI handle the more technical elements of game design and development, developers can focus more on realizing their creative ideas rather than navigating blockchain complexities.

Russell Bennett – CEO, Metacade

I think that AI is going to play a pivotal role in shaping the future of onchain games by enhancing product depth and creating more engaging user experiences for both onchain native and consumers. Metacade’s AI layer will play a prominent role utilising AI agents to enhance consumer and gaming experiences contributing to the onboarding of the next billion onchain users. The depth and intelligence AI brings to gaming will attract players by offering experiences that feel natural and intuitive, comparable to traditional games. This aligns completely with our vision of making onchain gaming more accessible and habit-forming for mainstream audiences.

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