Epic Games CEO Tim Sweeney has publicly criticized Valve for its mandatory AI disclosure policy on Steam. Sweeney described the requirement as offensive, arguing that it forces developers to issue political statements that can be weaponized by groups hostile to AI technology.
The Steam policy mandates that developers explicitly disclose how generative AI is utilized in their games. For instance, the developers of Call of Duty: Modern Warfare 4 noted that AI tools were used to assist in the creation of specific in-game assets.
Sweeney has consistently opposed these requirements since November 2025, labeling them as illogical given the industry-wide integration of AI. He previously compared the disclosure mandate to a scarlet letter, suggesting it creates unnecessary barriers for developers.
Epic Games recently adjusted the rules for its Unreal Engine game creation contest. While the competition initially mandated the use of AI, the company later updated the policy to make AI usage entirely optional for participants.
The latest Steam Next Fest saw a record number of AI-assisted game demos, with the total number of entries nearly doubling compared to June 2026. This influx has led to concerns regarding content quality and the rapid proliferation of AI-generated clones of popular titles.
