Shift Up CEO: AI Essential for Smaller Studios

Hyung-tae Kim, the CEO and director of Shift Up, has warned that artificial intelligence is essential for developers in smaller nations to compete with the overwhelming manpower of studios in the U.S. and China. Speaking at South Korea's 2026 Economic Growth Strategy event, Kim highlighted the disparity in workforce size, noting that while Shift Up devotes around 150 people to a single game, Chinese studios can deploy between 1,000 and 2,000 staff.

He argued that AI allows smaller teams to bridge the gap in both quality and volume of content. Kim insisted that this technology will not lead to job losses but will instead make employees more valuable, capable of performing the work of 100 people. The company recently rewarded its 300 staff with significant bonuses and is currently developing a sequel to Stellar Blade. The debate over AI in gaming continues to divide the industry, with major publishers like EA and Square Enix embracing the technology while others face fan backlash over suspected usage.

Hyung-tae Kim addressed the significant gap in resources available to developers in different regions during his speech at South Korea's 2026 Economic Growth Strategy event. He explained that the sheer scale of operations in countries like China creates an insurmountable obstacle for smaller studios without technological intervention.

Shift Up, the developer behind the action title Stellar Blade, currently dedicates approximately 150 employees to the development of a single game. In stark contrast, Kim noted that Chinese studios often have the capacity to assign between 1,000 and 2,000 people to similar projects. This massive difference in workforce size directly impacts a studio's ability to produce content.

Kim stated that this disparity leaves smaller developers lacking the capacity to compete effectively. The limitations are not just numerical but affect the final product in two critical areas:

• The quality of the game
• The volume of content produced

Without a solution to this imbalance, studios in smaller nations face a difficult path forward in the global market.

Kim proposed that artificial intelligence is the key to leveling the playing field. He argued that AI integration allows a significantly smaller team to output work that rivals the scale of much larger competitors. The technology acts as a force multiplier for existing staff.

Crucially, Kim pushed back against the common fear that AI leads to workforce reductions. He insisted that the goal is not to replace employees but to enhance their capabilities. According to Kim, AI will make employees more valuable to the company and the industry at large.

He offered a striking metric to illustrate this efficiency boost, claiming that with AI, "one person can perform the work of 100 people." This statement underscores the potential for productivity gains that Shift Up is aiming to achieve to maintain its competitive edge.

Despite the challenges discussed, Shift Up appears to be in a strong position financially. The company recently demonstrated its commitment to its workforce by gifting its 300 staff members a package of high-value items. Employees received an Apple Watch, AirPods Max, and a cash bonus of $3,400.

The studio is also expanding its portfolio. A sequel to their successful title is currently in development, listed as Stellar Blade 2. Additionally, Shift Up is working on a new project titled Project Spirits, which will be published by Level Infinite. These developments indicate a period of growth for the studio as it navigates the changing landscape of game development.

The conversation around AI in gaming is highly polarized. Many companies have been forced to issue statements denying the use of AI in their games or marketing materials due to fan sensitivity. Recent controversies include Nintendo denying allegations of AI-generated imagery for a toy range and Ubisoft removing AI-generated elements from Anno 117: Pax Romana after complaints.

Opinions among industry leaders are split. EA CEO Andrew Wilson has called AI "the very core of our business," while Square Enix has reorganized to be more aggressive in applying the technology. Conversely, Rockstar co-founder Dan Houser recently likened AI to mad cow disease. Despite the backlash, some developers, like Dead Space creator Glen Schofield, see generative AI as a way to "fix" the industry.