Nintendo has confirmed it will not be incorporating generative artificial intelligence technology in its games due to concerns over intellectual property rights, the company's president said Tuesday.

Speaking at an investor Q&A session, Nintendo president Shuntaro Furukawa said that while generative AI has gained popularity, the company has no immediate plans to use it in its upcoming titles.

"Generative AI has gained attention for its creative capabilities, but it also comes with issues such as intellectual property rights, Furukawa said, according to a rough translation of the session.

The move comes as the broader gaming industry explores AI to reduce development costs and streamline processes.

Major players like Microsoft Corp and Electronic Arts Inc. are actively integrating AI to assist in creating game content, from dialogue to environmental design. 

The gaming sector is grappling with widespread job cuts, prompting companies to seek cost-effective solutions. 

Nintendo's decision, however, reflects a more cautious approach, emphasizing the protection of its creative and legal assets.

"We have decades of expertise crafting unique gaming experiences," Furukawa said. "While we remain flexible in adapting to technological advancements, we aim to continue delivering unique value that cannot be achieved through technology alone."

AI is viewed as a potential answer capable of automating various aspects of game development.

Generative AI is designed to create specific types of content, like text and images, based on patterns. Artificial General Intelligence (AGI), meanwhile, aims to perform any intellectual task at a human-like level, encompassing broader understanding and reasoning capabilities.

Despite its potential, the technology has sparked debate over its implications for creativity and employment within the industry.

Known for its iconic franchises such as Super Mario and The Legend of Zelda, Nintendo is particularly vigilant about intellectual property protection.

The company has a history of actively protecting its intellectual property rights through legal action. It has sued various entities over unauthorized use of its characters, trademark infringement, and piracy.

Nintendo did not immediately return a request for comment.

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