Abstract
AI-based text-to-image generation has undergone a significant leap in the production of visually comprehensive and aesthetic imagery over the past year, to the point where differentiating between a man-made piece of art and an AI-generated image is becoming more difficult. Generative Models such as Stable Diffusion, Midjourney and others are expected to affect several major industries in technological and ethical aspects. Striking the balance between raising human standard of life and work vs exploiting one group of people to enrich another is a complex and crucial part of the discussion. Due to the rapid growth of this technology, the way in which its models operate, and gray area legalities, visual and artistic domains - including the video game industry, are at risk of being taken over from creators by AI infrastructure owners. This paper is a literature review examining the concerns facing both AI developers and users today, including identity theft, data laundering and more. It discusses legalization challenges and ethical concerns, and concludes with how AI generative models can be tremendously useful in streamlining the process of visual creativity in both static and interactive media given proper regulation. Keywords: AI text-to-image generation, Midjourney, Stable Diffusion, AI Ethics, Game Design, Digital Art, Data Laundering
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