Epic CEO Speaks Out Against Valve’s Mandatory AI Disclosure on Steam

Epic Games CEO Tim Sweeney has criticized Valve’s mandatory AI disclosure policy on Steam, calling it “really irresponsible” and likening it to a “Scarlet Letter” that encourages player backlash. Since 2024, Valve has required developers to disclose any use of generative AI in their games, with this information displayed prominently on Steam store pages. The policy was updated in January 2026 to clarify which types of AI require disclosure—specifically AI used to generate game content or during gameplay, excluding AI-powered development tools like code helpers.

Sweeney’s concerns are grounded in market research showing significant commercial consequences. Established studios experience a “catastrophic” 40-60% drop in sales when disclosing AI use, suggesting a strong player stigma against AI-generated content. This creates a dilemma for developers: either slow down development by avoiding AI tools or risk commercial damage through mandatory disclosure.

In response, Epic Games has announced increased AI integration in Unreal Engine 6, positioning AI as essential for reducing development tedium and enabling faster releases. The debate highlights tension between transparency and developer interests, with Sweeney arguing that Valve’s approach creates what he calls a “hater community trying to kill the game” rather than fostering informed consumer choice about AI in games.

Epic CEO Speaks Out Against Valve’s Mandatory AI Disclosure on Steam

Sources