Today, as part of Take-Two Interactive Software’s second-quarter 2027 earnings call, Strauss Zelnick took questions from investors after presenting the company’s financial results. One caller was concerned about AI, specifically the proliferation of AI-based compiles and decompiles that have raised piracy concerns among publishers in recent weeks. Zelnick notes that “[the video games] “The business has been largely immune to piracy” thanks to factors such as file sizes, how console ecosystems work and aspects related to the online nature of the gaming industry. That said, Strauss continues, there is a threat to the industry due to AI. However, it assures investors that Take-Two is appropriately escalating its measures against bad faith actors using artificial intelligence. Watch on YouTube “We are completely focused on improving our technical defenses and improving our legal activities appropriately. And – at the same time, without being arrogant in any way – every entertainment business that exists is subject to some element of piracy, [and] This is likely to disrupt our business to a greater or lesser extent. I think it’s going to be manageable and we’re focused on it.” Zelnick returns to AI later in the call, where an investor asks once again about AI, apparently interested in whether the CEO believes it can give GTA 6 developer Rockstar some kind of “competitive advantage” in the gaming industry. Given Zelnick’s previous comments on the topic, his answer didn’t come as a complete surprise. “It’s always been true. [that technology benefits us]”explains Zelnick. “We have always created our entertainment within computers with technology. All the advances have benefited us and I don’t expect that to change; In fact, I hope it accelerates. I think at the same time, what we’re known for [at Take-Two] It’s the desire to make the best entertainment on Earth. And, more often than not, we have succeeded, and the creativity that drives that success is human creativity leveraging technology. And I think that’s what you’ll see in the future as well. “Certainly, some of the more recent technological advances you’ve seen have made it easier to create assets. That’s all consistent with the history of our business. When I started in interactive entertainment (longer ago than I’d like to say), it was really difficult to create an asset on a computer. Today, it’s a lot easier, but you know what’s not easier? Achieving great success. Achieving great success was difficult then, and it’s difficult now, and it will be difficult in the future. And the creation of hits continues being the responsibility of human beings”. This is not the first example of skepticism about AI that we see from Strauss Zelnick. In March, he flatly rejected the idea that AI could tackle games on the scale of GTA 6. Elsewhere on the call, Take-Two’s CEO reiterated how well GTA 6 is doing and reaffirmed that pre-order numbers are well above expectations, and promised that the game’s success will “establish a new foundation” for Take-Two’s gaming business.
