Recent advances in artificial intelligence technologies have begun to transform the gaming industry, especially in the areas of player-character interaction and narrative development. Traditionally, game stories and character relationships are predefined through scripted dialogues and sequences, which requires developers to invest a lot of time and effort. However, AI-driven approaches such as large language models (LLMs) and deep learning techniques offer a dynamic alternative that can enable more flexible, player-driven interactions and adaptive AI behaviors. This paper comprehensively reviews the current role of AI in game design from multiple perspectives, including applications in multi-agent interaction, procedural level and game content generation, and game development process optimization. In addition, this study explores the advantages and limitations of AI technology, coping with technical challenges, and ethical issues that may arise during the implementation of AI. The results are intended to provide a reference for the future application of AI in game design and provide recommendations for coping with emerging risks.
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