Take-Two Interactive Lays Off Head of AI Division and Team in Games Industry Retrenchment

Take-Two Interactive has laid off Luke Dicken, the head of its AI division, along with an undisclosed number of team members, Engadget reported. Dicken confirmed the news in a LinkedIn post, writing that it was "truly disappointing" to share that his time at the company and that of his team had ended. Dicken's team had been developing AI technology for Take-Two's game development operations, which include subsidiaries Rockstar Games, 2K Games, and Private Division. The division was working on what Dicken described as "cutting edge technology" to support game development pipelines. The layoffs arrive at a complicated moment for AI in the games industry. Game studios have enthusiastically explored AI tools for asset generation, NPC dialogue, quality assurance, and other production tasks. But the practical integration of AI into shipped titles has proven slower and more contested than early enthusiasm suggested, and several studios have pulled back from high-profile AI initiatives after facing criticism from developers and players. Take-Two has undergone significant workforce reductions over the past two years as the company manages costs ahead of major title releases. The company has cut thousands of positions across its studios since 2024. The elimination of a dedicated AI leadership role may indicate a shift from centralized AI investment toward integrating AI tools at the individual studio level, or it may reflect broader cost discipline. Take-Two declined to comment on the layoffs when contacted by reporters.