Despite being free/cheap to use right now, AI is expensive to run in terms of things like water and electricity. The companies that own the datacenters that perform the AI operations are running at a loss because they want to capture public trust and market share. Hence, no one wants to power a game with AI, when the people playing the game would just see it as a seamless advancement in game mechanics.

Also, no one wants to appeal to gamers directly, because they aren’t a good demographic to have singing the praises of your product. Steve the fortune 500 CEO, and Maria the director of the state DMV, will not be enthralled by Caleb the racist 14 year old’s product endorsement.

Finally, we’ve found that it us really hard to put effective guardrails on LLMs. So any company that did this would be risking Caleb posting a video online where their game is used to display or discuss lewd sexual acts, leading to bad PR.