AI in Gaming 2026: Shaping the future responsibly

The AI Revolution in Gaming: Ambition vs. Reality

The gaming industry is on the cusp of a transformative era, driven by the integration of artificial intelligence (AI). The inaugural “The State of AI in Gaming 2026” report, a collaboration between KPMG and UNLV’s International Gaming Institute, provides a comprehensive overview of how AI is reshaping the global gaming value chain. Based on a survey of 83 companies, including land-based and online operators as well as suppliers, the report highlights a strategic ambition for AI adoption, with companies scoring an average of 57 on the Strategy dimension of the AI Maturity Index. However, overall industry maturity is still developing, scoring 45 out of 100. Notably, land-based operators lag behind their online counterparts, with an average score of 39 compared to 54 for online operators. This disparity is largely due to the challenges of integrating AI into legacy systems and managing complex physical environments.

The ROI Reality Check: Overcoming Barriers to Scaling AI

While cost reduction remains the primary driver for AI adoption, only one in five companies has reported achieving meaningful returns, with the majority expecting a return on investment (ROI) within the next two years. Key barriers to scaling AI include knowledge and training gaps, resource constraints and concerns over cybersecurity and data privacy. Despite these challenges, the cultural climate for AI adoption is generally supportive, with 66 percent of respondents indicating a moderately or strongly supportive environment.

Mind the Gap: Bridging the Divide Between Regulators and Industry

Regulatory actions, particularly in North America and Western Europe, are focusing on using AI for player protection and safety. Jurisdictions such as Belgium, Finland, Italy and several US and Canadian provinces are mandating or encouraging automated monitoring systems. However, there’s a significant disconnect between regulators and the industry, with 58 percent of regulators believing that the gaming industry cannot effectively self-regulate its use of AI, and only 13 percent aware of licensed operators having internal responsible AI policies or frameworks. We recommend that stakeholders engage more closely with regulators to bridge this gap and ensure that AI governance is robust and effective.

The Innovation Surge: R&D and Patents on the Rise

Research and advancements in AI within the gaming industry are also accelerating, as evidenced by a 15-year bibliometric analysis. AI-related gaming publications have doubled their pre-2020 trajectory, with sports betting and online problem gambling becoming the dominant research topics. Conference discourse on AI has surged, with AI sessions increasing from 3 in 2020 to 81 in 2025. Compliance (including responsible gambling (RG), Know Your Customer (KYC), and anti–money laundering (AML)) and marketing and customer relationship management (CRM) are the most discussed topics. Patent activity reflects growing R&D investment, with annual AI-related gaming patent grants rising from 15 in 2010 to 100 by 2025. Companies like Angel, IGT, and Light & Wonder lead in filing activity, with the United States accounting for over 61 percent of all filings worldwide.

Playing it Safe: The Imperative for Trusted AI

The 2026 thematic focus on responsible AI underscores the importance of ethical AI practices in the gaming sector. Tracked AI incidents have increased sharply since 2023, with deepfakes being the most common category used to encourage illegal or inappropriate gambling. Only 70 percent of gaming companies report having some form of responsible AI practices, and under five percent describe these practices as embedded throughout their organizations. This highlights the urgent need for companies to develop and implement comprehensive responsible AI policies. To address these gaps, the KPMG Trusted AI framework offers a values-led approach to designing and deploying ethical AI. Built on 10 core pillars — including Fairness, Transparency and Accountability — it provides a comprehensive governance roadmap across the AI lifecycle. By adopting this framework, gaming companies can proactively mitigate risks like deepfakes, strengthen regulatory compliance and build the trust necessary for sustainable AI innovation.