Krafton, a South Korean games publisher behind popular franchises such as PUBG and Subnautica, has announced its transformation into an "AI-first" company. This shift towards artificial intelligence means that human jobs are likely to be at risk, with the company looking to slash its workforce through voluntary resignations.
According to Krafton, this move is not about laying off employees but rather about supporting them in proactively designing their growth direction and embarking on new challenges as the company undergoes an AI transformation. The company aims to support members in "autonomously deciding whether to continue the direction of change internally or expand externally." In essence, it's a call for employees to step up and prove themselves capable of adapting to this new era.
This decision comes after Krafton reported record profits, which will be invested in large-scale investments in AI. The company plans to automate work centered on agentic AI, including the development of an "AI-centered management system." However, it's worth noting that these efforts have already proven to be underwhelming, with a recent MIT study indicating that 95 percent of generative AI pilots at companies are failing.
The latest data suggests that even companies investing heavily in AI are facing significant challenges. A separate study predicts that 40 percent of agentic AI projects will be cancelled by the end of 2027. This makes it increasingly difficult for Krafton to maintain its optimism about the success of this new direction.
As Krafton embarks on this transformation, it remains to be seen whether employees will be able to adapt and thrive in an environment dominated by artificial intelligence. With such a high failure rate among AI-driven projects, it's clear that the road ahead won't be easy.
According to Krafton, this move is not about laying off employees but rather about supporting them in proactively designing their growth direction and embarking on new challenges as the company undergoes an AI transformation. The company aims to support members in "autonomously deciding whether to continue the direction of change internally or expand externally." In essence, it's a call for employees to step up and prove themselves capable of adapting to this new era.
This decision comes after Krafton reported record profits, which will be invested in large-scale investments in AI. The company plans to automate work centered on agentic AI, including the development of an "AI-centered management system." However, it's worth noting that these efforts have already proven to be underwhelming, with a recent MIT study indicating that 95 percent of generative AI pilots at companies are failing.
The latest data suggests that even companies investing heavily in AI are facing significant challenges. A separate study predicts that 40 percent of agentic AI projects will be cancelled by the end of 2027. This makes it increasingly difficult for Krafton to maintain its optimism about the success of this new direction.
As Krafton embarks on this transformation, it remains to be seen whether employees will be able to adapt and thrive in an environment dominated by artificial intelligence. With such a high failure rate among AI-driven projects, it's clear that the road ahead won't be easy.