The global video game industry could unlock billion in additional profits through AI-driven cost cuts, according to a new report from Morgan Stanley. The investment bank identified four gaming stocks poised to benefit from the AI revolution.

Google Cloud executive Jack Buser described AI as the Iron Man suit that game developers need, arguing that artificial intelligence can help address the industry’s sustainability challenges. This is not a sustainable business model, Buser said of current development practices.

However, the industry faces headwinds. German gaming employment dropped 3% for the second consecutive year, while Behaviour Interactive announced additional layoffs citing declining demand for mobile projects.

Former PlayStation executive Shuhei Yoshida predicted that the future of gaming lies with indie developers rather than generic AAA titles, suggesting a fundamental shift in how games are created and consumed.