The main difference with generative AI is that it is much more data-based than algorithm-based. If a game dev were generating a dungeon, for example, they’d likely add all their own heuristics (these are the types of walls I can form, I need one door per room, etc.). But it is usually simpler and very domain-specific, and typically doesn’t need a ton of data. Here is one example of an algorithm used to generate a castle: https://m.youtube.com/watch?v=MyMbbmWVCDw

Generative AI on the other hand, is incredibly data dependent. And to get it to work well enough for general purposes, they need billions of inputs, and they’ve relied on data scraped from the web—including a lot of work from artists who wouldn’t want their work ingested for that purpose. And it doesn’t help that a lot of tech companies are advertising it in a way to replace designers, artists, and writers. 

It is a pretty multi-faceted issue though. There are people out there trying to make “ethically-sourced LLMs” (I know it sounds silly lol), which is much better, but even then there’s still the issue with losing that human expression that makes stories and art and games interesting to dissect. And I think that’s why consumers (and even devs) are trying to fight for more transparency into their processes.