Here's a number that should terrify every VC who poured money into AI gaming startups: 95%.

That's the failure rate. Ninety-five percent of AI pilot projects in game development never reach production, never generate benefits, never justify their investment. They demo well, raise funds, generate hype, then quietly disappear into the graveyard of "revolutionary" tools that revolutionized nothing.

Meanwhile, AI captured 53% of global venture funding in the first half of 2025…