Hooded Horse Bans Generative AI for Game Development, Calls It “Cancerous”

Hooded Horse, the publisher behind the critically acclaimed Manor Lords, has announced a strict policy: the company will no longer work with any studio that employs Generative AI in the development process. Tim Bender, a senior executive at Hooded Horse, told Kotaku that the technology does not simplify work—it makes it more complicated.

This policy is explicitly outlined in Hooded Horse’s distribution contracts, forbidding the use of AI-generated content even as placeholders or temporary assets during prototyping. Bender expressed concern that early use of AI could allow elements to unintentionally slip into the final product, comparing it to “cancer” that must be carefully contained.

While industry giants such as Nexon and Sega are embracing AI to improve workflow efficiency, Hooded Horse is taking a firm stance in the opposite direction. Even with prominent voices like Dan Houser from Rockstar or veteran voice actor Troy Baker seeing AI as just a tool, Hooded Horse believes that protecting human creativity and vision is paramount.

Legal and Industry Concerns

Copyright issues also play a role. In early 2025, the U.S. Copyright Office clarified that works created solely by Generative AI, without human creativity, cannot be copyrighted. Excessive AI use could therefore affect a game’s long-term business value.

Furthermore, AI-generated art has faced backlash from both players and developers. Charles Cecil of Revolution Software admitted that using AI for the new Broken Sword game was an expensive mistake, prompting many studios to reconsider whether cost savings justify potential reputational damage.

Hooded Horse’s decision sends a clear message to indie developers worldwide: if you want the publisher’s support, every aspect of your game must be the product of human effort and creativity, not just AI commands. This approach may set a new standard for studios that prioritize artistic quality and authentic content in the future.