Level-5 president and CEO Akihiro Hino has publicly acknowledged that the Japanese studio used generative artificial intelligence in a recent digital showcase, and apologised for failing to disclose that fact to viewers at the time. The admission, first reported in a piece titled Level-5 CEO admits using generative AI in recent showcase, has prompted renewed debate over how transparent studios should be when AI tools are used in promotional or presentation material shown to the public.
Level-5, the studio behind long-running franchises such as Professor Layton and Yo-kai Watch, did not flag the use of generative AI during the broadcast itself, leaving audiences to discover the fact only after the showcase had aired. Hino’s apology addressed the lack of disclosure directly, rather than disputing that AI tools had been used in producing elements of the presentation. The company has not detailed which specific segments of the showcase involved generative AI or the extent to which it shaped visuals, scripting, or other creative assets shown to fans.
Wider Industry Scrutiny Over AI Disclosure
The episode lands at a sensitive moment for the games industry, where generative AI adoption has become one of the most contentious issues among developers, publishers, and players alike. Studios have increasingly experimented with AI tools for tasks ranging from concept art to dialogue generation, but backlash has followed whenever such use is perceived as undisclosed or as a substitute for human creative labour. For a company like Level-5, whose identity is closely tied to handcrafted, character-driven storytelling, the reputational stakes of an AI transparency lapse are considerable, even if the underlying use of the technology was limited in scope.
The controversy also feeds into a broader conversation playing out across the gaming sector, as companies grapple with where and how to signal AI involvement in creative and marketing content without eroding audience trust. Publishers elsewhere have faced similar criticism after AI-generated artwork or assets surfaced in official materials without prior notice, suggesting that disclosure practices remain inconsistent industry-wide even as the underlying technology becomes more widely adopted.
While the Level-5 situation is rooted in Japan’s development scene and carries no direct operational link to studios or publishers in the UAE and wider Gulf region, it remains relevant to observers tracking the global gaming industry from the Gulf, including investors and executives at regional gaming and esports ventures that increasingly look to established franchises and international studio practices as benchmarks. As Gulf markets continue to expand their footprint in gaming investment, publishing partnerships, and esports infrastructure, questions around AI ethics and disclosure in major international showcases are likely to inform how regional stakeholders frame their own policies when engaging with global content pipelines.
Level-5 has not indicated whether it will introduce a formal policy on disclosing AI use in future showcases, though the public nature of Hino’s apology suggests the studio is treating the matter as a priority for maintaining audience trust ahead of upcoming announcements.
