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Is your "AI First" strategy actually a house of cards waiting to collapse?

While CEOs are busy pumping the hype train, the practical reality of LLMs is looking a lot less rosy. In this episode, Ben explores why the current AI trajectory might be a "subprime crisis" in the making. We move past the Skynet fantasies to look at the four existential and human threats that LLMs pose to the games industry, from the "logarithmic curve of effectiveness" to the dangerous atrophy of our own ability to think deeply.

What You'll Learn In This Episode:

What the "subprime AI crisis" is and why the current investment stack might be unsustainable.
Why relying on "generative slop" leads to a generational decline in the value of information.
How to identify when AI is capitalizing on your own cognitive biases and "sycophantic" needs for ego validation.
How to balance using AI as a force-multiplier without atrophying the "slow thinking" required for high-level game production.

Reference Links:

🔗 https://www.science.org/doi/10.1126/science.aec8352

🔗 https://www.goodreads.com/book/show/11324722-the-righteous-mind

🔗 https://www.youtube.com/watch?v=p22QeLNHvlc

🔗 https://www.wheresyoured.at/the-subprime-ai-crisis-is-here/

🔗 https://metr.org/blog/2025-07-10-early-2025-ai-experienced-os-dev-study/

🔗 https://medium.com/@webteam.ybsvp/when-ai-gets-it-wrong-the-deloitte-scandal-and-the-question-of-reliability-86940bc9017a

🔗 https://tech.yahoo.com/ai/articles/mit-created-duplicate-ai-workers-185644013.html

🔗 https://arxiv.org/pdf/2604.01363

🔗 https://www.cnbc.com/2026/02/06/google-microsoft-meta-amazon-ai-cash.html

🔗 https://www.fastcompany.com/91417492/deloitte-ai-report-australian-government

🔗 https://techcrunch.com/2024/07/24/model-collapse-scientists-warn-against-letting-ai-eat-its-own-tail/

🔗 https://www.amazon.com/Thinking-Fast-Slow-Daniel-Kahneman/dp/0374533555

🔗 https://www.youtube.com/watch?v=nDL3Ch7Nz8c

Connect with us:

🔗Ben's LinkedIn: https://www.linkedin.com/in/benjamin-carcich/

🔗BBG's LinkedIn: https://www.linkedin.com/company/building-better-games/

🔗Instagram: https://www.instagram.com/buildingbettergames/#

🔗Website: https://www.buildingbettergames.gg

🔗YouTube: https://www.youtube.com/channel/UCZpMT-dUwQR-R4Mb4uub6Sw

If you want me to help producers or studios build better games through effective systems and leadership, you can reach me at: info@valarinconsulting.com

#GameDev #ArtificialIntelligence #StudioLeadership #TechBubble #BuildingBetterGames

E125: 4 AI Threats That Matter More Than Skynet