Lies of P Sequel Moves to Full Production Amidst AI Hiring Controversy

The highly anticipated sequel to the Pinocchio-inspired soulslike Lies of P has officially entered full production, according to the latest earnings results released by developer Neowiz. While this announcement brings fresh excitement for fans of the critically acclaimed game, it has also triggered a significant backlash regarding Neowiz’s recent hiring practices and its stance on generative AI in game development.

The controversy stems from a job listing for an "AI Creator" role, which Neowiz clarified will not be directly involved in the creation of the Lies of P sequel. Despite this assurance, the detailed responsibilities outlined in the posting reveal a studio deeply committed to integrating AI tools into its art pipelines, a move that has alienated a portion of the gaming community.

Clarifying the AI Creator Role

Neowiz provided a statement to PC Gamer to address concerns that the new hire would be working on the Lies of P sequel. The company emphasized that the position is located within an independent Art R&D team at ROUND8, the internal studio responsible for developing the original game.

According to Neowiz, the AI Creator’s responsibilities are strictly focused on improving efficiency during the preliminary stages of development. The specific duties listed in the job posting include:

  • Concept Generation: Creating character and background concept drafts, as well as expanding variations using tools like Stable Diffusion and Midjourney.
  • Asset Assistance: Providing AI-based texturing and modeling assistance through image-to-3D technology.
  • Pipeline Integration: Training unique AI models and building libraries optimized for the project's art style using LoRA and ControlNet.
  • Post-Processing: Conducting in-painting, out-painting, and high-resolution upscaling of AI products to meet game-ready standards.
  • Workflow Optimization: Identifying the latest generative AI trends and creating usage guides for in-house artists.

Neowiz stressed that AI-generated visuals will serve only as internal reference material to establish visual direction before formal production begins. The studio asserted that all final assets for upcoming games will be created by experienced human artists and that their proprietary visual library will be trained exclusively on assets for which they hold full legal rights.

Community Backlash and Industry Context

Despite Neowiz’s clarifications, the initial reaction from the community has been overwhelmingly negative. The job listing was perceived by many as a signal that the studio is "all-in" on generative AI, sparking accusations that the studio is prioritizing efficiency over artistic integrity.

Social media users expressed deep disappointment and anger, with many citing the unique, hand-crafted aesthetic of the original Lies of P as a primary reason for their investment in the franchise. Critics argue that the use of AI detracts from the authentic artistic effort that made the first game memorable.

The controversy highlights a growing divide within the gaming industry. While major industry leaders like Sony Interactive Entertainment president Hideaki Nishino and Google Cloud’s Jack Buser have spoken optimistically about AI enabling "gaming experiences like never before," players remain skeptical. Neowiz’s approach, which lacks the cautious public messaging seen from other developers like Xbox chief Asha Sharma, has intensified the debate over the role of AI in creative processes.

Neowiz’s Position Amidst Industry Trends

Neowiz is no stranger to the global market, reporting Q1 2026 revenues of 101.4 billion Korean won (approximately $68 million). The company’s statement that it is "developing games of various genres and platforms to bring new surprises" suggests a strategic push to innovate through technology.

However, for the fanbase of Lies of P, the distinction between "preliminary stage work" and "direct development" feels insufficient. The original game was praised for its bizarre, memorable concept and genuinely beautiful visual style. The perception that the sequel might rely on AI-generated references, even if not final assets, threatens to undermine the trust built by the first title.

As Neowiz moves forward with the sequel, the studio faces the challenge of balancing technological innovation with the artistic expectations of its audience. Whether the clarification that the AI Creator is not working on the sequel will be enough to quell the controversy remains to be seen, but the incident underscores the increasing tension between development efficiency and player sentiment in the modern gaming landscape.