The gaming industry has consistently evolved in tandem with technological advancements. Each shift has unlocked new creative potential. Nowadays, we’re witnessing one of the most transformative changes yet: the rise of artificial intelligence as a fundamental part of how games are made, played, and marketed.

In 2025, AI has moved beyond experimentation. It’s embedded across development pipelines, shaping narratives, optimizing user acquisition, and helping studios to scale faster and smarter. In this article, Mobupps explores how AI is driving real change across the global gaming landscape and how Mobupps’ MAFO AI plays a role in this shift.

South Korea's gaming market is thriving, with mobile gaming being particularly dominant. According to Statista, mobile gaming revenue is projected to reach $6.15 billion in 2025. User penetration in the country is expected to reach 47.3% in 2025 and increase to 53.9% by 2030. Additionally, revenue in the overall games market is projected to reach $14.56 billion in 2025.

While mobile gaming is popular across all age groups, PC gaming is most popular among younger generations, and console gaming is more common among older gamers.

Source: Medium: A Guide to Entering the South Korean Game Market

The AI Evolution in Gaming

AI has long been part of the gaming experience. Early examples focused on enemy behavior or pathfinding. Today, we’re dealing with far more advanced capabilities, such as models that can write, draw, respond, and adapt in real-time.

There are four key types of AI models leading this transformation:

1. Large Language Models (LLMs): These power dynamic dialogue systems generate in-game narratives, allowing for more immersive and adaptive storytelling.
2. Small Language Models (SLMs): Designed for speed and efficiency, SLMs are ideal for mobile and edge environments, delivering AI performance without heavy infrastructure.
3. Large Multimodal Models (LMMs): These models handle text, image, video, and audio inputs simultaneously, automating tasks such as character design, scene creation, and trailer editing.
4. Large Action Models (LAMs): Still emerging, these models enable NPCs and in-game systems to understand and act on changing environments without pre-coded scripts.

Together, these models are enabling game developers to go from concept to content faster, while enhancing user experience in ways that weren’t previously possible.

Real-World Examples of AI in Games

Studios are implementing these technologies with measurable success across both product and performance.

• KRAFTON ran a CPC user acquisition campaign that used behavioral AI to segment and retarget users in real time. The result was a 30% increase in average player retention time, achieved without adding more media budget.
• 1001 Nights, a smaller studio, integrated GPT-4 into its game to deliver adaptive storytelling. Each player’s decisions influence how the plot unfolds, and the system generates content on the fly. Players have responded with higher engagement and longer sessions.
• Unity and Ubisoft turned to generative AI to speed up asset creation and code testing. With these systems in place, development time on key projects was cut nearly by 50%, allowing teams to focus more on design, creativity, and polish.

These examples point to new opportunities that AI can provide to development teams.

AI in Marketing and User Acquisition

Not only gameplay is evolving, but games' marketing and scaling are also reshaping. Platforms like Meta and Google have built AI-driven UA engines that now offer improved results across the board. Studios using these systems are seeing an average of 30% lower acquisition costs and 25% higher conversion rates, due to more precise targeting and automated creative testing.

Beyond the major platforms, new tools are emerging to support growth teams in smarter decision-making. Replai.io, for example, allows teams to analyze ad creatives frame by frame, understanding what’s working and why. This level of granularity helps optimize campaigns before ad fatigue sets in. AppGrowing provides real-time visibility into competitors’ UA efforts, enabling studios to track which networks and formats are trending, adjust spend accordingly, and spot new opportunities early.

The rise of AI in marketing brings powerful advantages: hyper-personalized targeting at scale, real-time bid and budget optimization, and predictive insights into player behavior and lifetime value. Creative automation also enables faster iteration, especially valuable in fast-moving environments like TikTok or UGC-driven campaigns. 

But automating too much can lead to missed context and uninspired creatives. The most effective teams take a hybrid approach: they let AI handle scale, repetition, and performance monitoring, while reserving key decisions for experienced marketers.

Looking ahead to 2025, successful studios are deploying a few key strategies:

• Training AI on first-party gameplay data to refine churn prediction and retention models.
• Running multi-variant AI tests to optimize performance, targeting in-app event completions or deeper funnel KPIs.
• Balancing AI with creative direction, ensuring that brand voice and emotional storytelling aren't lost in automation.
• Using explainable AI tools to gain visibility into how decisions are made, especially crucial in cross-platform attribution across CTV, mobile, and influencer channels.

MAFO AI Role

Mobupps’ MAFO AI was built with this hybrid approach in mind. It’s designed to help mobile game marketers and advertisers translate data into action without getting lost in dashboards or guesswork. MAFO AI stands for performance and insight. It combines fraud detection signals, UA creative intelligence, and campaign automation tools into one platform. 

One of its key advantages is the ability to identify patterns early and surface meaningful recommendations. While scaling a high-performing title or troubleshooting a new one, MAFO helps ensure budgets are working as hard as they can.

This is especially useful for mid-sized studios and indie developers, who may not have large growth teams but still want the benefits of sophisticated optimization and control.

What’s next?

AI is no longer an emerging trend in gaming; it’s the new foundation. The best outcomes come when you treat AI as a helper that can handle the heavy lifting while you focus on vision, quality, and connection with your gamers.

MAFO AI is one of the ways Mobupps is helping developers and advertisers strike that balance. If you are moving into the next stage of gaming evolution, connect with Mobupps and let's conquer the perks.

Chat with us: marketing@mobupps.com