Epic CEO Calls Steam’s ‘Made with AI’ Tag Useless as Gaming Shifts to AI-Driven Future

Artificial intelligence is rapidly reshaping the tech and gaming industries, blurring the lines between human-made and machine-assisted creations. Amid this shift, Steam recently introduced a “Made with AI” label to help users identify games that incorporate AI-generated content. But Epic Games CEO Tim Sweeney believes the tag is unnecessary — and will soon be irrelevant.

Responding to a post on X urging Steam to drop the AI label, Sweeney argued that while AI disclosures may be important in specific contexts, they simply don’t make sense for video games. “Agreed. The AI tag is relevant to art exhibits for authorship disclosure, and to digital content licensing marketplaces where buyers need to understand the rights situation,” he wrote.

Sweeney added that games, unlike artwork sold for licensing or gallery display, will inevitably embed AI at many stages of production. Because of this, he believes Steam’s labeling approach is misguided. “It makes no sense for game stores, where AI will be involved in nearly all future production,” he said.

His remarks come at a time when Epic Games is involved in a lawsuit alleging that an AI-generated voice was used for the character Darth Vader in Fortnite without proper authorization. Even so, Sweeney maintains that his stance on the AI label is not tied to Epic’s own development tools or practices.

Why Steam Introduced the ‘Made with AI’ Label

Steam requires developers to disclose any AI-generated assets used in their games. For example, the store page for the upcoming cooperative shooter Arc Raiders includes a public note:

"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."

Valve’s objective is to ensure transparency for players and clarity in cases where rights or ownership issues may arise, especially around AI-generated art or audio.

Sweeney Accuses Steam of Hurting Small Developers

The debate around Steam’s labeling policy triggered broader criticism from Sweeney, who accused Valve of repeatedly introducing systems that make life harder for small studios. When a user on X suggested that Epic wanted the AI label removed because Unreal Engine heavily integrates AI tools, Sweeney rejected the claim.

“Not true. I just hate to see Valve confiscate ever more opportunity from small developers by facilitating new categories, cancel campaigns and review bombing. Steam used to just facilitate downloads,” he wrote.

He argued that Steam’s evolving policies — from its payment system to restrictions on crypto-based games, and now AI disclosures — limit the ability of small creators to thrive. “Then they foreclosed on payments, then price competition, then crypto, now AI,” Sweeney added.

The back-and-forth highlights a growing divide in the gaming industry: while AI becomes a fundamental part of game production, platforms and studios continue to grapple with how much transparency users actually need — and how new rules impact developers behind the scenes.