Game company Activision was accused of selling an AI-generated cosmetic item in Call of Duty: Modern Warfare 3 without disclosing its use of artificial intelligence. 

The cosmetic reportedly formed part of the Yokai's Wrath bundle, which was released in December 2023 and sold for 1,500 COD Points (approximately USD 15).

The bundle included various virtual items such as an Operator skin, weapon blueprint, calling card, weapon sticker, and loading screen. However, it's unclear which specific part of the bundle was allegedly AI-generated or if the entire set was created using AI.

This accusation came amidst growing concerns about the impact of generative AI on the video game development industry. According to reports, Activision had been promoting the use of AI throughout the company, with some employees claiming that 2D artists were laid off and remaining concept artists were required to use AI in their work.

The incident sparked discussions about the ethical implications of using AI-generated content in games, particularly when it is sold to consumers without disclosure. 

It also raised questions about the potential impact on jobs in the gaming industry, as companies explore ways to integrate AI into their development processes.