The gaming industry is facing a heated debate following Epic Games CEO Tim Sweeney’s call for Steam and other digital storefronts to remove “Made with AI” labels from game listings. The discussion highlights broader concerns about transparency, creative ethics, and the future role of AI in game development.
Sweeney shared his stance publicly on X (formerly Twitter), arguing that AI will soon be a standard part of game creation, much like compilers, rendering engines, or physics systems. According to him, labeling games that use AI no longer makes sense because artificial intelligence will eventually be integrated into nearly every stage of production.
He also suggested that AI labels may only be justified in certain niche contexts, such as art exhibitions or licensing platforms where authorship clarity is required. However, for end products like games, he believes such disclosures are unnecessary.
Sweeney also criticized Valve, the company behind Steam, accusing them of using AI labels in a way that harms small developers. He claimed labeling contributes to review bombing and “cancel campaigns,” making it harder for indie studios to compete with larger publishers.
Valve, however, has implemented AI disclosure requirements with a completely different intent. Steam’s policy mandates developers to specify whether AI is used to create pre-generated content such as art, models, or code or live-generated content in real time. For the latter, developers must also include safeguards to prevent copyright infringement or illegal material from being produced.
Valve’s stated purpose is to give players transparency and protect against legal and ethical risks, especially as many generative AI models are trained using copyrighted work without explicit approval.
Sweeney’s comments triggered immediate backlash from portions of the gaming community, including independent developers and players. Critics argue transparency is necessary because many consumers are intentionally avoiding AI-generated content, which some feel lowers creative value or undermines human artists. Others insist labels are essential until copyright laws catch up with rapidly advancing AI tools.
The controversy intensified due to timing, as Epic Games had recently faced criticism regarding allegations of using AI-generated voice work in Fortnite.
As the industry moves forward, one thing is clear: AI’s role in game development will continue to expand, but how it should be disclosed or regulated remains highly contested. Whether transparency wins or the normalization of AI takes over will shape the next phase of digital entertainment.
