Piero Molino, CEO of Studio Atelico, discusses their focus on building generative AI video games that run on device, providing developers with full creative control and avoiding high costs. Their Atelico AI Engine allows for modular design and fine-tuned small models, aiming to create unique gameplay experiences while maintaining an ethical approach towards consent, fair compensation, and artist collaboration. With a recent $5M funding round, Studio Atelico plans to enhance player experiences through innovative gameplay, tool refinement, and artist investment.