AI is transforming video game sound design by enabling real-time sound effect generation, which creates more realistic and adaptive audio experiences that respond dynamically to player actions and in-game events. Unlike traditional sound effects which are pre-recorded, AI-driven sound effects use algorithms and machine learning techniques to analyze game states and player interactions, synthesizing or modifying sounds accordingly. This technology allows for dynamic audio landscapes that enhance immersion and realism, offering significant time and resource efficiency for developers. AI-generated sound effects can be created using generative models, text-to-audio models, and synthesis models, each providing unique ways to tailor audio to game environments. These advancements democratize sound design, allowing indie developers to access high-quality, customizable audio production while expanding creative possibilities for unique and engaging player experiences. As AI technology continues to evolve, it promises to further redefine the auditory landscape of video games, enhancing realism, efficiency, and creative freedom in game development.