Level-5 CEO Just Apologized for Using AI in Its Biggest Showcase of the Year — And Fans Are Divided

The apology nobody saw coming just dropped. Akihiro Hino, the CEO and creative mastermind behind Level-5, has publicly apologized after fans discovered that the studio’s massive Vision 2026 II Dream showcase was built with cutting-edge AI — and the internet is having a full-blown meltdown over it.

Was it a harmless experiment to make a flashier presentation? Or a disturbing glimpse into a future where even beloved studios hand their creativity to machines? Here is everything that happened, and why it matters way more than you think.

What Actually Happened at Level-5 Vision 2026 II Dream

On Thursday, Level-5 streamed its nearly hour-long Level-5 Vision 2026 II Dream presentation — the studio’s biggest showcase of the year. The event unveiled updates across a jaw-dropping lineup of titles: Yo-kai Watch 2: Haunted Domain, Pufflings: Journey Through a Fantasy World, DECAPOLICE, Fantasy Life i: The Girl Who Steals Time, Snack World: The Dungeon Crawl Gold, HOLY HORROR MANSION, Inazuma Eleven: Cross, Inazuma Eleven Rekka no Kakumei, and Professor Layton and the Curious Village.

The company even shared a short making-of video for Professor Layton and the Curious Village and previewed its Tokyo Game Show 2026 booth. The full presentation is available on the Level-5 YouTube channel with English and Simplified Chinese subtitles.

But eagle-eyed viewers noticed something off. Parts of the presentation — the flashy visuals, the slick transitions, the overall polish — were generated using AI. And fans were not happy about it.

Akihiro Hino Breaks His Silence

A day after the stream, Akihiro Hino took to X (formerly Twitter) with a formal statement that has now been viewed millions of times. His words, as reported by Anime News Network journalist Ken Iikura-Gross, were blunt:

“We incorporated cutting-edge AI that also served as an experiment, in our earnest desire to make a phenomenal presentation. We understand this may have offended some, and we sincerely apologize.”

Hino went further, drawing a hard line that surprised many. He emphasized that Level-5 creates “all elements related to the appeal and uniqueness of our titles, including the scenarios, character designs, and basic world-building, entirely by human hands.” In other words: the games themselves are human-made. The AI was only used on the presentation layer.

But then came the sentence that truly set the internet on fire.

The Two-Year Bombshell Nobody Is Talking About Enough

Buried in Hino’s statement was a revelation about Level-5’s future that is arguably bigger than the apology itself. The CEO admitted the studio mainly uses AI to convert human-made assets into digital assets — things like polygon models — to improve efficiency. And the time saved, he claims, goes back into the creative process.

Here is the kicker: Hino revealed that Level-5 is in a “testing and refinement phase to achieve our goal of reducing the current five-year development cycle for major titles to just two years.”

Read that again. Five years down to two. That is not a small tweak — that is a fundamental rewiring of how one of Japan’s most beloved RPG studios makes games. Titles like DECAPOLICE, which fans have been waiting on for years, or the next Professor Layton adventure, could theoretically arrive dramatically faster.

But at what cost? That is the question splitting the fandom in half right now.

Why Fans Are So Angry — and Why Others Say Calm Down

The backlash was swift. Longtime fans of Professor Layton, Inazuma Eleven, and Yo-kai Watch argue that a studio famous for its handcrafted charm — Takuzo Nagano’s iconic character art, the cozy watercolor worlds of Fantasy Life i — should be the last place embracing AI. To them, even using it for a presentation feels like a betrayal of the studio’s identity.

Artists in particular have voiced concern. Japan’s game and anime industries have been roiled by the AI debate all year, from Studio Ghibli-style image generators to voice synthesis controversies. Seeing Level-5 — a studio built on whimsy, warmth, and human touch — openly experimenting with AI felt like a punch to the gut for many creatives.

On the other side, defenders point out that Hino was transparent, apologized quickly, and drew a clear boundary: scenarios, character designs, and world-building stay human. The AI, they argue, was basically a fancy video editing tool for a marketing stream — not a replacement for artists. If it genuinely shortens brutal five-year dev cycles and reduces crunch, is that not a win for the very humans critics want to protect?

Both sides have a point. And that is exactly why this story refuses to die.

What This Means for DECAPOLICE, Fantasy Life i, and Professor Layton

For gamers, the practical question is simple: does this change anything about the games themselves? According to Hino, no. Fantasy Life i: The Girl Who Steals Time continues to charm players with its handcrafted cozy RPG gameplay. DECAPOLICE remains one of the most anticipated crime-suspense RPGs on the horizon. Professor Layton and the Curious Village is still positioned as a triumphant return for the gentleman puzzle-solver, complete with a behind-the-scenes making-of featurette.

Hino closed his statement with a promise: “We will take this as a lesson and apply it to future efforts, so please look forward to Level-5’s next presentation.” The studio’s Tokyo Game Show 2026 booth preview suggests they are betting big that fans will show up anyway.

Whether the apology is enough — and whether that two-year development dream becomes reality — will define Level-5’s next chapter.

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What Do You Think?

Was Akihiro Hino’s apology sincere enough, or did Level-5 cross a line by using AI in the first place? Does it matter if AI only touches presentations and polygon conversion — or is any AI use by a beloved creative studio a red flag? And honestly: would you trade handcrafted five-year development for faster two-year releases if the games stay great?

Drop your take in the comments — this is one debate the gaming world needs to have, and your voice matters.

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