Epic Games CEO Slams Steam’s AI Labels as Controversy Over Game Development Grows

AI-made games are becoming a touchy subject, and the argument is getting harder to ignore. Some players want nothing to do with AI-generated content, while developers are finding ways to make games faster and cheaper. So should a game get criticised before anyone even plays it, simply because AI helped create it? Epic Games CEO thinks that’s exactly what’s happening on Steam, and he’s not holding back.

Steam’s AI labels spark backlash

Tim Sweeney isn’t happy with Valve’s requirement for developers to disclose certain uses of generative AI on Steam. In a recent interview, he argued that these labels have become a target for players who dislike AI, sometimes overshadowing the games themselves.

Just imagine discovering a promising new release, only to see it flooded with negative comments before launch because the developers used AI. With gaming trends increasingly embracing the technology, that’s exactly the problem Sweeney wants to address.

He believes Steam’s review system already gives players enough information to judge whether a game deserves their money. After all, terrible games existed long before AI entered the picture. Still, there’s another side to this argument. If you’re spending €70 on entertainment, shouldn’t you know whether AI helped create what you’re buying?

Developers who ignore AI risk losing

Sweeney’s concerns go beyond angry Steam reviews. He believes studios refusing to embrace AI could eventually struggle to survive. The Epic boss claims AI is already making certain game development tasks four times faster, with potential improvements reaching tenfold.

That means developers could spend less time fixing bugs, writing code and testing ideas. Instead of waiting months to see whether a concept works, teams might experiment with several possibilities in a fraction of the time.

Epic engineering executive Marcus Wassmer even described an Unreal Engine 5.9 experiment that initially achieved an estimated 20-fold productivity boost. However, making individual tasks faster doesn’t necessarily mean an entire game will launch sooner.

Epic’s AI gamble raises questions

Interestingly, Epic is reportedly taking its own advice. Separate reporting suggests an unannounced shooter featuring Star Wars and Marvel characters has adopted an AI-first approach, with developers encouraged to rely heavily on AI for coding and artwork.

The project was reportedly delayed beyond its planned March 2027 release, though there’s no evidence that AI caused the setback.

Nevertheless, the situation raises an obvious question: if AI makes development dramatically faster, why isn’t every AI-assisted project finishing ahead of schedule? Sweeney has defended the technology against criticism, arguing that developers shouldn’t be attacked simply for using tools that help them create better games.

Better games or more AI slop

Sweeney believes AI could help developers explore ideas previously considered too expensive or risky, particularly in shooters and massive online worlds. That sounds promising when big-budget games often follow familiar formulas. But these gaming industry innovations come with a catch: the same tools could flood Steam with low-effort releases.

And that’s where Sweeney’s argument against AI labels gets complicated. Players might welcome more ambitious entertainment, but removing those disclosures would leave them with less information about how their games were made. For an industry already arguing over AI-generated content, that could spark an even bigger fight.