Muslims and Arabs have often been portrayed unfairly in Western digital games, where their representation has been shaped by ideological constructions based on the dichotomy of self and other. This mode of representation intensified following the events of September 11, 2001, and the integration of artificial intelligence technologies has further enabled Western game developers to reinforce the concept of the Muslim "other" in game design. Popular digital games such as Call of Duty, God of War, Assassin's Creed, and Splinter Cell, whose recent editions incorporate AI-driven technologies, frequently depict the ethnic and religious identities of the Middle East—and the broader Islamic world—as an inferior "other" in contrast to the Western world. This study examines the intersection of artificial intelligence, Muslim identity, and digital games. Its primary objective is to analyze how Islam and Muslims are represented in AI-enhanced Western digital games. The research adopts a descriptive–analytical approach based on documentary research, with data collected through systematic document analysis. The findings of this study may provide valuable insights for domestic digital game developers employing artificial intelligence technologies, as well as for cultural policymakers. The analysis indicates that Islam and Muslims are predominantly reconstructed within narratives of terrorism, barbarism, and hostility. Furthermore, the integration of artificial intelligence into digital games in recent years has significantly increased player engagement, often to addictive levels. The world's best-selling games encourage prolonged consumption while simultaneously reinforcing ideological patterns in players' perceptions. Drawing upon previous scholarship, this study concludes that Western representations of Islam have evolved beyond simplistic portrayals into a broader discourse of Islamophobia that has become deeply embedded within the global digital gaming industry. The convergence of digital games, Muslim identity, and artificial intelligence presents both challenges and opportunities for the gaming industry. While Western game developers frequently disseminate distorted and unreliable narratives about Islam and Muslims, the continued advancement of artificial intelligence also holds the potential to promote more accurate, balanced, and authentic representations in future digital games.