After watching a documentary on Netflix, AI in games is the least bit concerning.
https://www.newscientist.com/article/2357548-us-military-plan-to-create-huge-autonomous-drone-swarms-sparks-concern/
Apparently autonomous killer drones (without human input) have already been send out into the battlefield, leaving it up to AI to decide who to kill...
The military is the forefront for AI developments, like with a lot of technologies we enjoy today.
I wonder how long before we get the first report of a killer drone school shooting, and I'm not kidding :(
https://www.npr.org/2022/06/04/1103066205/taser-armed-drones-school-shootings
Or they can simply hack those...
Of course AI is also used for good things
https://www.science.org/doi/10.1126/science.adj3312 (AI assisted robotic surgery and more)
So at least AI can patch you back up after putting a hole in you ;)
For games it would be nice if AI watches your play style and gently massages the game to your preferred play style, interests and abilities. Like a DM while playing D&D back in the day. Plans were there with Kinect looking at how engaged you are with a game, yet you don't need a camera for that. AI can easily detect patterns of things you avoid in games, struggle with or simply nope out / get frustrated by mashing buttons. And detect what sections and which challenges you keep revisiting. Of course this can also be used to make games more addictive :/ No more need for focus groups and psychologists to make it as addictive as possible, next AI can do it on the fly.