South Korean developer and publisher KRAFTON announced another step toward expanding its AI R&D framework: the appointment of Kangwook Lee as the company's new Chief AI Officer (CAIO). Lee has actually been at Krafton since 2022 in the role of Head of KRAFTON AI; the promotion is a sign of the company's continued investment in AI research and development. As a reminder, the company has been calling itself "AI First" for a while now.
Lee has already led major initiatives, including the collaboration with NVIDIA to develop CPCs (Co-Playable Characters), AI-driven companions designed to enable real-time interaction between players and in-game teammates. Those debuted in KRAFTON's life simulation game inZoi, featuring the so-called Smart Zoi NPCs, which can adapt to the environment and respond to events around them.
Soon, the technology will also be introduced in PUBG with the PUBG Ally system, built on NVIDIA ACE technology and running an SLM (Small Language Model) on-device. PUBG Ally NPCs can discuss strategies with players and adapt their playstyle accordingly. The NPCs can bring over requested items, assist in reviving teammates, and make independent decisions during looting, combat, and survival situations. They also work with voice-based interaction and already support English, Korean, and Chinese, with the first tests planned early this year in PUBG: BATTLEGROUNDS Arcade.
Under Lee’s leadership, KRAFTON’s AI strategy will focus on three core areas:
- Elevating gameplay: KRAFTON will continue developing AI features to enhance immersion, responsiveness, and player interaction. Technologies such as CPCs complement human-designed gameplay systems, enabling studios to maintain full creative ownership and final decision-making authority. AI will be applied where it meaningfully enhances the player experience, while preserving the handcrafted elements that define each title.
- Supporting development teams: KRAFTON is investing in AI tools to help streamline repetitive or technical tasks, enabling developers to spend more time on creative planning, storytelling, and design. The company views AI as a means of supporting its workforce by reducing friction in production workflows and empowering teams to focus on their craft. AI-driven analytics and development tools operate using authorised and responsibly managed data in accordance with applicable privacy standards.
- Exploring long-term research opportunities: Building on its experience operating large-scale physics-based virtual worlds, KRAFTON is conducting long-term research into physical AI and robotics through a newly established entity, Ludo Robotics. This entity has operations in the United States and Korea. This research is in the early stages and focuses on software intelligence, using simulation environments to test and validate complex systems. Games remain KRAFTON’s core business, though, and future research initiatives are designed to build on the company’s foundational strengths in interactive technology.
Most gamers still aren't on board with this, as evidenced most clearly by the controversy sparked by Larian's usage of AI in the development of Divinity, but KRAFTON appears to have chosen its lane without much hesitation. Only time will tell whether they made the right move.
About the author: With over two decades of experience in gaming journalism, Alessio Palumbo has led the gaming vertical at Wccftech since August 2015. He started working at a young age for Italian websites like Everyeye.it, Gamestar.it, Nextgame.it, and Multiplayer.it before kickstarting the indie English-language publication Worlds Factory as its founder and Editor in Chief. In the last decade, he has coordinated the overall output of Wccftech's gaming section, managed PR relations, assigned reviews, produced daily news coverage, edited gaming content as needed, and delivered game reviews. Arguably, his trademark content is the long series of exclusive developer interviews that have been cited by Wikipedia and by the biggest news media and gaming publications. His passion for technology also makes him knowledgeable when it comes to gaming hardware and tech. His favorite genres include RPGs, MMORPGs, and action/adventure games.
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