Epic Challenges Steam’s AI Disclosure Rules As Industry Debates Future Workflows

Epic Games chief Tim Sweeney questioned the value of mandatory AI disclosure labels on digital storefronts, arguing that AI in game production is already becoming standard and should not be treated as a special category. His comments surfaced after a former Unreal Engine developer urged marketplaces to remove the “Made with AI” tag on Steam. The discussion unfolded publicly and quickly drew responses across the development community. The exchange placed the focus on AI in game production, a topic that continues to divide studios adjusting to shifting workflows.

Sweeney responded to developer Matt Workman, who posted on X that Steam and other platforms should drop the label because it no longer reflects practical development realities. “Agreed,” Sweeney wrote, adding that the tag might make sense for art exhibits or licensing markets where authorship and rights require clear documentation, but not for game platforms. He said AI will play a role in nearly all commercial production going forward, making such labels irrelevant for consumers.

A few hours later, Sweeney expanded his position, suggesting that disclosure standards could spiral into absurdity if taken too far.

“Why stop at AI use? We could have mandatory disclosures for what shampoo brand the developer uses. Customers deserve to know lol.” — Tim Sweeney

Steam currently requires developers to declare whether AI-assisted tools contributed to any part of their game. Embark Studios’ Arc Raiders is one example. Its Arc Raiders Steam page includes a notice explaining that procedural and AI-based tools assisted elements of production while emphasizing that final work reflects the team’s own creative decisions. The Epic Games Store version of the game does not include a similar entry.

The policy difference between storefronts reopened a broader conversation about transparency, labor, and competitive pressure. Some studios view AI disclosures as necessary context for buyers evaluating creative authenticity or licensing concerns. Others argue that routine pipeline tools should not carry a public marker that implies special scrutiny.

Sweeney’s remarks sparked immediate pushback from independent developers who frame the debate around long-term implications for craft and employment. Mike Bithell, known for Thomas Was Alone and other titles, responded to a post on Bluesky.

“I just find this really sad. Imagine being so certain that you need slop machines to do your work, that you convince yourself that EVERYBODY must need them,” he wrote. — Mike Bithell

Bithell’s view reflects growing unease among teams that see generative systems expanding into writing, animation, and asset pipelines. His criticism also points to a wider concern that normalizing automated tools may weaken support for human-led development and blur standards for authorship.

Sweeney’s assertion that “AI will be involved in nearly all future production” signals how Epic might approach its own portfolio, which ranges from the Unreal Engine toolchain to Fortnite and the Epic Games Store. Any shift in Epic’s internal processes would likely influence industry norms, given the company’s scale and reach. Developers and publishers are watching closely, as decisions from dominant platform holders often shape expectations about future workflows and marketplace requirements.

Studios continue to weigh whether generative systems can streamline work without displacing staff or diminishing creative ownership. Some companies, including Krafton, have positioned themselves as “AI-first,” prompting criticism for tying strategic direction to cost-cutting and voluntary redundancies. Others remain cautious, testing localized uses while avoiding public commitments.

The discussion around AI in game production is unlikely to cool, especially as platforms adopt differing policies. Steam’s labels remain in place for now, placing responsibility on developers to outline their tools. Epic’s stance suggests a divergent approach that treats AI as one more standard instrument in a growing toolkit.

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