Last week, Level-5’s “VISION 2026 II: Dreams” presentation sparked a lot of concern among the studio’s fanbase over the use of generative AI. Posts decrying the studio’s perceived use of “slop” tools spread across social media. While the studio’s CEO and president, Akihiro Hino, tried to reassure fans about the limits on how AI was used, Level-5 has now stated in a new post today on its official website that some of the odd-looking artwork people complained about was simply off due to human error.
The post on Level-5’s website explains that while the studio understands fans’ mistrust, several of the out-of-place elements in the first teaser trailer for Yo-Kai Watch 2: Haunted Domain were not the result of generative-AI tools.
According to Level-5, the stranger elements in the background artwork, which some fans online accused of being AI-generated, were actually based in reality rather than hallucinated by a machine. For instance, Level-5 explains that for the telephone poles featured in the trailer, the studio used reference photos of real Japanese electrical wires…which, to be completely fair to Level-5, do look bizarre.
❌ LEVEL5 dément l’utilisation de l’IA pour l’artwork de Yo-kai Watch 2: Haunted Domain, confirmant que les anomalies visuelles sont des erreurs humaines.
Le studio va également republier tous les trailers de la Vision en supprimer les passages utilisant l’IA. 🙏 pic.twitter.com/Eu3JBKgVdk
— Yo-net Watch (@YonetWatch) September 16, 2026
Likewise, where background elements such as the vending machines and rain gutters are concerned, Level-5 states that what looked like AI-generated mistakes were actually just the result of shoddy artistic work by humans. This is why the background art was changed for the second version of Yo-Kai Watch 2: Haunted Domain‘s trailer, but was still present in the first version of the trailer that appeared in the Nintendo Direct on September 9.
Level-5 states that, as the Nintendo Direct was scheduled well before its VISION 2026 II: Dreams presentation, earlier versions of the trailers had to be submitted in time for the Direct’s deadline. The post also states that an updated version of the trailers will be shown at the Tokyo Game Show.
“Dear fans, I know you’re concerned about the possible usage of AI in our games, but don’t worry, we only use it to generate every single model in them. We still do some concept art ourselves.” https://t.co/5Dr57Rl6Xz
— alex !!! 💛🩷 (@wandydoodles) September 12, 2026
However, as Level-5’s CEO explained in a post on X on September 12, the studio is not denying that AI tools were used in the game’s development. Instead, the post on Level-5’s website states that the studio is simply trying to clarify that many of the issues spotted in the VISION 2026 II: Dreams presentation were just the result of ordinary sloppiness. Regardless, the company says it will try to limit its use of AI to improving efficiency instead of creating work that appears in videos shared with fans.
Alas, that’s one of the problems with genAI. Once you admit it was used in one place, fans start to see what they believe to be evidence of it everywhere else. And if we know anything, it’s that Hino is very into genAI right now. “If we let the impression take hold here that ‘using AI is evil,’ it could seriously hinder the advancement of modern digital technology,” he said last year. “I hope creators and audiences alike can recognize AI as a tool that people use to make their works. Here’s to hoping that various technological innovations lead to even greater growth in the game industry!”