Level-5 has issued an official apology and outlined a plan to address fan concerns regarding the studio's use of artificial intelligence in game development. The company acknowledged that its open discussions about AI integration had led to increased player scrutiny of its game trailers and presentations.
During a recent Nintendo Direct presentation, Level-5 showcased a trailer for Yo-Kai Watch 2: Haunted Domain. Following this, at the Level-5 Vision 2026 event, some players noted apparent alterations in the footage, fueling allegations of AI usage. The presentation itself also contained elements that fans identified as potentially AI-generated, including an animated depiction of CEO Akihiro Hino.
Level-5 addressed these specific points in an official blog post. The company stated that visual anomalies such as strange vending machines, electrical wires, and gutters in the Yo-Kai Watch 2 trailer were the result of human error by an artist, not AI. Regarding the trailer differences, Level-5 explained that an earlier version was used for the Nintendo Direct due to the platform's strict deadlines. The studio plans to reupload an updated trailer at the Tokyo Game Show that will not feature AI or human errors.
Level-5 Clarifies AI's Role in Development
Company CEO Akihiro Hino also commented on the matter, asserting that Level-5 does not use AI directly within game content, specifically mentioning Professor Layton and The New World of Steam as an example. He stated that AI is primarily employed to increase development efficiency, allowing creators to focus more on the games themselves. The company maintains that the charm and individuality of its titles remain human-created.
Despite these statements and assurances, the controversy has left some fans wary of Level-5's creative direction. The studio's recent outspokenness about AI integration, coupled with these incidents, presents a challenge in rebuilding player trust.