Video game publisher Level 5 issued a statement last Thursday to address the use of generative AI in some promotional videos from its “Vision 2026 II Dream” presentation on September 10. Level 5 said it would upload revised versions of those videos to deal with errors caused by the use of AI, as well as what appeared to be generative AI errors but were actually human errors.

Level 5 specifically addressed an image concept illustration for the Yōkai Watch 2: Hunted Domain game that appeared to have used generative AI. “We have identified several instances of what was attributed to AI but were actually deliberate removal [of elements] or human error,” the company wrote.

Additionally, Level 5 offered an apology and said it does not directly use AI during the actual production of its video games. “We offer our deepest apologies for causing suspicions in our production process due to our inexperience with generative AI and simple human errors,” the company wrote.

The video game publisher provided a detailed explanation of the deliberate changes and human errors in the Yōkai Watch 2: Hunted Domain image concept illustration. Level 5 presented the original and edited versions of the illustration and explained the electrical poles in the background were part of what caused the confusion. The company said an in-company designer drew the intentionally simplified electrical poles based on reference photos the designer personally took, and did not use AI during the illustration process.

Level 5 then addressed questions regarding the vending machines, rain gutters, and missing brake levers on the bicycle in the illustration. The company said all three were drawn by hand. It said the simplified details in the vending machines and rain gutters were human errors, but noted the original Yōkai Watch 2 games on the Nintendo 3DS also did not depict bicycles with brake levers.

Level 5 ended its statement offering a further apology. The company added it would only use AI for “efficiency purposes” and would avoid using the technology in any video content directly presented to users.

Level 5‘s statement followed in the wake of Level 5 CEO Akihiko Hino’s own statement on the use of generative AI during the “Vision 2026 II Dream” presentation. Hino apologized for the use of generative AI stating, “We incorporated cutting-edge AI that also served as an experiment, in our earnest desire to make a phenomenal presentation. We understand this may have offended some, and we sincerely apologize.”

The nearly one-hour-long “Level 5 Vision 2026 II Dream” presentation showcased the video game titles Yōkai Watch 2: Haunted Domain, Pufflings: Journey Through a Fantasy World, DECAPOLICE, Fantasy Life i: The Girl Who Steals Time, Snack World: The Dungeon Crawl – Gold (The Snack World: Trejarers), HOLY HORROR MANSION, Inazuma Eleven: Cross, Inazuma Eleven Rekka no Kakumei (Revolution of Fire), and Professor Layton and the Curious Village (Layton Kyōju to Fushigi na Machi). The company presented a short making-of video for Professor Layton and the Curious Village and previewed its Tokyo Game Show 2026 booth.

The full presentation is available on the Level 5 YouTube channel with English and Simplified Chinese subtitles:

Sources: Level 5‘s website, Level 5‘s YouTube channel,