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In Disturbing Demo, Video Game Characters Panic When Told They’re Just Code

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Last month, the union SAG-AFTRA, which represents video game performers and other actors, ended a nearly yearlong strike with a tentative agreement on “guardrails” against the use of artificial intelligence.

The gaming industry has been in disarray, with publishers chomping at the bit to start harnessing AI to augment — or, realistically, replace — the jobs of voice actors and writers.

And we’re not just talking about scripts or voice lines generated by an algorithm. In the not-so-distant future, gamers could be interacting with AI-powered agents, setting a new precedent for levels of immersion. As the New York Times reports, we’ve already seen glimpses of such a future.

Two years ago, Australian tech company Replica Studios released a demo for a game based on “The Matrix” franchise. Non-playable characters, powered by generative AI, were given a voice to react in real-time to a human gamer with a microphone.

Things got unsettling fairly quickly, with some NPCs expressing a disturbing level of chagrin upon realizing they weren’t real. It must’ve been a strange experience for the gamer, reminiscent of the mind-bending source material, which posits reality itself could be a simulated experience created by machines.

“I need to find my way out of this simulation and back to my wife,” one man told the gamer in the demo, as quoted by the NYT. “Can’t you see I’m in distress?”

“What does that mean?” a woman said. “Am I real or not?”

A number of game studios are heavily investing in an AI-fueled future for the industry, from simulated environments and level designs to autonomous agents that can play test instead of humans.

That commitment is already coming at a steep cost to human labor, with mass layoffs hitting several high-profile game developers over the last couple of years.

But how long until AI-powered tools will become commonplace in the industry remains to be seen.

“There is a very big gap between prototypes and production,” AI tech company Inworld AI CEO Kylan Gibbs told the NYT.

Even Replica Studios, the company behind the “Matrix”-inspired demo, went under last year as costs ballooned and the competition grew.

But other companies, including heavy hitters like Sony and Nvidia, are still working on populating video game worlds with simulated people.

Yet many of these AI models remain prohibitively expensive to run, which could compound the industry’s issues with soaring costs.

“How do we push the research community in a more useful direction?” Gibbs told the NYT. “It’s a cheaper way to make games, but it is going to cost you 5,000 times more to run a game, so is it actually cheaper?”

Others in the industry are calling for keeping humans at the heart of video games, or citing concerns that an LLM-powered NPC could lead to all kinds of unpredictable — and potentially unsavory — behavior.

More on video games: Rocket Scientists Hooked Up ChatGPT to the Controls of a Spaceship, and the Results Were Not What You Might Expect



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Exclusive | Cyberport may use Chinese GPUs at Hong Kong supercomputing hub to cut reliance on Nvidia

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Cyberport may add some graphics processing units (GPUs) made in China to its Artificial Intelligence Supercomputing Centre in Hong Kong, as the government-run incubator seeks to reduce its reliance on Nvidia chips amid worsening China-US relations, its chief executive said.

Cyberport has bought four GPUs made by four different mainland Chinese chipmakers and has been testing them at its AI lab to gauge which ones to adopt in the expanding facilities, Rocky Cheng Chung-ngam said in an interview with the Post on Friday. The park has been weighing the use of Chinese GPUs since it first began installing Nvidia chips last year, he said.

“At that time, China-US relations were already quite strained, so relying solely on [Nvidia] was no longer an option,” Cheng said. “That is why we felt that for any new procurement, we should in any case include some from the mainland.”

Cyberport’s AI supercomputing centre, established in December with its first phase offering 1,300 petaflops of computing power, will deliver another 1,700 petaflops by the end of this year, with all 3,000 petaflops currently relying on Nvidia’s H800 chips, he added.

Cyberport CEO Rocky Cheng Chung-ngam on September 12, 2025. Photo: Jonathan Wong

As all four Chinese solutions offer similar performance, Cyberport would take cost into account when determining which ones to order, according to Cheng, declining to name the suppliers.



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Why do AI chatbots use so much energy?

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In recent years, ChatGPT has exploded in popularity, with nearly 200 million users pumping a total of over a billion prompts into the app every day. These prompts may seem to complete requests out of thin air.

But behind the scenes, artificial intelligence (AI) chatbots are using a massive amount of energy. In 2023, data centers, which are used to train and process AI, were responsible for 4.4% of electricity use in the United States. Across the world, these centers make up around 1.5% of global energy consumption. These numbers are expected to skyrocket, at least doubling by 2030 as the demand for AI grows.



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AI Transformation (AX) using artificial intelligence (AI) is spreading throughout the domestic finan..

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AI Transformation (AX) using artificial intelligence (AI) is spreading throughout the domestic financial sector. Beyond simple digital transformation (DX), the strategy is to internalize AI across organizations and services to achieve management efficiency, work automation, and customer experience innovation at the same time. Financial companies are moving the judgment that it will be difficult to survive unless they raise their AI capabilities across the company in an environment where regulations and competition are intensifying. AX’s core is internal process innovation and customer service differentiation. AI can reduce costs and secure speed by quickly and accurately handling existing human-dependent tasks such as loan review, risk management, investment product recommendation, and internal counseling support.

At customer contact points, high-quality counseling is provided 24 hours a day through AI bankers, voice robots, and customized chatbots to increase financial service satisfaction. Industry sources say, “AX is not just a matter of technology, but a structural change that determines financial companies’ competitiveness and crisis response.”

First of all, major domestic banks and financial holding companies began to introduce in-house AI assistant and private large language model (LLM), establish a dedicated organization, and establish an AI governance system at the level of all affiliates. It is trying to automate internal work and differentiate customer services at the same time by establishing a strategic center at the group company level or introducing collaboration tools and AI platforms throughout the company.

KB Financial Group has established a ‘KB AI strategy’ and a ‘KB AI agent roadmap’ to introduce more than 250 AI agents to 39 core business areas of the group. It has established the ‘KB GenAI Portal’ for the first time in the financial sector to create an environment in which all executives and employees can utilize and develop AI without coding, and through this, it is efficiently changing work productivity and how they work.

Shinhan Financial Group is increasing work productivity with cloud-based collaboration tools (M365+Copilot) and introducing AI to the site by affiliates. Shinhan Bank placed Generative AI bankers at the window through the “AI Branch,” and in the application “SOL,” “AI Investment Mate” provides customized information to customers through card news.

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Hana Bank is operating a “foreign exchange company AI departure prediction system” using its foreign exchange expertise. It is a structure that analyzes 253 variables based on past transaction data to calculate the possibility of suspension of transactions and automatically guides branches to help preemptively respond.

Woori Financial Group established an AI strategy center within the holding under the leadership of Chairman Lim Jong-ryong and deployed AI-only organizations to all affiliates, including banks, cards, securities, and insurance.

Internet banks are trying to differentiate themselves by focusing on interactive search and calculation machines, forgery and alteration detection, customized recommendations, and spreading in-house AI culture. As there is no offline sales network, it is actively strengthening customer contact AI innovation such as app and mobile counseling.

Kakao Bank has upgraded its AI organization to a group and has more than 500 dedicated personnel. K-Bank achieved a 100% recognition rate with its identification card recognition solution using AI, and started to set standards by publishing papers to academia. Toss Bank uses AI to determine ID forgery and alteration (99.5% accuracy), automate mass document optical character recognition (OCR), convert counseling voice letters (STT), and build its own financial-specific language model.

Insurance companies are increasing accuracy, approval rate, and processing speed by introducing AI in the entire process of risk assessment, underwriting, and insurance payment. Due to the nature of the insurance industry, the effect of using AI is remarkable as the screening and payment process is long and complex.

Samsung Fire & Marine Insurance has more than halved the proportion of manpower review by automating the cancer diagnosis and surgical benefit review process through ‘AI medical review’. The machine learning-based “Long-Term Insurance Sickness Screening System” raised the approval rate from 71% to 90% and secured patents.

Industry experts view this AI transformation as a paradigm shift in the financial industry, not just the introduction of technology. It is necessary to create new added value and customer experiences beyond cost reduction and efficiency through AI. In particular, it is evaluated that the differentiation of financial companies will be strengthened only when AI and data are directly connected to resolving customer inconveniences.

However, preparing for ethical, security, and accountability issues is considered an essential task as much as the speed of AI’s spread. Failure to manage risks such as the impact of large language models on financial decision-making, personal information protection, and algorithmic bias can lead to loss of trust. This means that the process of developing accumulated experiences into industrial standards through small experiments is of paramount importance.

[Reporter Lee Soyeon]



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