Epic Games CEO Slams Steam's AI Disclosure Rules, Calls Valve Irresponsible

Epic Games CEO Tim Sweeney has publicly criticized Valve’s mandatory AI disclosure policy on Steam. He argues that the requirement is doing more harm than good for developers trying to publish games. Speaking in a recent interview with PC Gamer, Sweeney called Steam’s AI disclosure requirement “irresponsible,” claiming it effectively places a stigma on games that use generative AI during development.

He believes the policy encourages backlash before players even try a game. Rather than focusing on AI itself, Sweeney argued developers should be judged by the quality of their games. He explained that Epic already uses generative AI internally to remove repetitive work, such as parts of the 3D modeling and texturing process, allowing artists to spend more time on creative tasks instead of routine production work. According to him, AI is simply another productivity tool rather than a replacement for talented developers.

The Epic boss also pushed back against the idea that creating every asset manually automatically makes a better game. He suggested players ultimately care more about the overall experience, world, and storytelling than how a flowerpot or other minor object was created during development. Sweeney added that modern game development has become too expensive to ignore technologies capable of improving efficiency.

That said, his biggest criticism was reserved for Steam’s disclosure labels. Sweeney argued that because Steam remains the largest PC storefront, developers often have little choice but to publish there. In his view, being forced to display an AI disclosure creates what he described as a “Scarlet Letter,” inviting criticism from players who oppose AI-generated content before the game even launches.

His comments comes as debate around AI in gaming continues to intensify. A recent analysis found that games carrying Steam’s AI disclosure labels received around 53% fewer reviews on average, while titles from larger studios appeared to face stronger community backlash than smaller indie projects. Meanwhile, Valve has continued requiring developers to disclose AI-generated content that players directly experience, positioning the policy as part of its broader transparency efforts for Steam users.