The ongoing debate about the role of generative AI in video game creation has a new voice. Tim Sweeney, head of Epic Games, has called on Valve to reconsider its policy requiring developers to disclose AI-generated content in games distributed on Steam.
Under Valve’s current policy, game developers must indicate if their games utilize AI-generated content on their Steam store pages. This means that the Steam page for games like Embark Studios’ Arc Raiders includes a note explaining their use of AI: “during the development process, we may use procedural- and AI-based tools to assist with content creation. In all such cases, the final product reflects the creativity and expression of our own development team.” Similarly, Activision’s Call of Duty reveals: “our team uses generative AI tools to help develop some in-game assets.”
AI Disclosure Debate
Sweeney argues that these disclosures are unnecessary as AI is becoming integral to video games. In response to a comment on social media urging the removal of the “Made with AI” label across digital marketplaces, Sweeney concurred, suggesting that the AI tag is pertinent when discussing art exhibits or digital content licensing, but is less relevant for game stores where AI will likely be involved in most future productions. This view has sparked a lively debate about the necessity of such disclosures, with some arguing they are essential for consumer knowledge.
The conversation around AI in gaming heated up when Activision faced criticism from Call of Duty: Black Ops 7 players for including AI-generated images in the game. This controversy led to a U.S. Congressman calling for stricter regulations to prevent companies from using AI in ways that could threaten jobs.
I havent really looked at the Multiplayer and Zombie calling cards as closely and im willing to bet they’re using ai on those too but its only the Campaign and endgame calling cards that are this type of blatant Sora/Grok artstyle pic.twitter.com/5qmEXhoQkJ
— Kume (@Kumesicles) November 14, 2025
The Impact of AI on Game Development
For art, especially when sold as premium content, some believe AI disclaimers should be required to help consumers make informed choices. However, this stance is not legally mandated, and Valve maintains this policy based on its principles. Using AI for creating in-game art differs significantly from traditional AI applications in gaming, such as NPC behavior or animation, which have been standard practice for years.
Sweeney humorously underscored his point by jokingly suggesting mandatory disclosures on unrelated matters, like developers’ shampoo brands, to highlight the perceived absurdity of such requirements in gaming.
Why stop at AI use? We could have mandatory disclosures for what shampoo brand the developer uses. Customers deserve to know lol.
— Tim Sweeney (@TimSweeneyEpic) November 27, 2025
Looking Ahead
Sweeney’s stance is not unexpected, given the extensive use of AI technology in Epic’s own Fortnite, where AI-created characters and dialogue are becoming more common. Earlier this year, Epic launched an AI version of Darth Vader in Fortnite, utilizing advanced AI models with the permission of James Earl Jones’s family. Despite its brief controversy, this feature exemplifies the growing potential of AI in gaming.
In a prediction earlier this year, Sweeney envisioned that soon, small development teams could harness AI to create games as expansive as The Legend of Zelda: Breath of the Wild, using AI for dialogues and character interactions, thus opening new possibilities in game development.