Artificial Intelligence (AI) has steadily become a transformative force in numerous industries, with game development being one of the most dynamic beneficiaries. As both players and developers demand richer and more immersive experiences, AI technology has emerged as a tool to enhance the depth, complexity, and realism of games. From creating smarter non-player characters (NPCs) to personalizing gameplay and automating game design elements, AI is redefining the boundaries of what games can achieve. This article explores how AI is reshaping game development, with a focus on the latest advancements and the broader implications for players and developers alike.