Why new EU deepfake legislation means games need to be careful when featuring real-world people and locations

The EU AI Act's deepfake transparency rules present an interesting challenge for game studios. The obligation is broader than the popular understanding of a deepfake, extending beyond fake videos of politicians, to a wide range of AI-generated and AI-manipulated content. This has prompted concern among many game studios that AI-generated assets may be prohibited – yet recent guidance suggests that several common uses of AI in games are unlikely to fall within its scope. The real complexity lies in the grey areas between fantasy and realism.