Epic Games CEO Tim Sweeney has once again criticized Steam's generative AI disclosure requirements. He believes that related tags on store pages could shift from technical explanations to stance labels, causing some consumers opposed to AI to direct negative sentiment toward development teams and impact sales.
The discussion began with a post by Matt Workman, an employee at Fal, a cloud-based generative tool company. Workman stated that requiring AI usage disclosure in 2026 would be absurd. Sweeney subsequently expressed support, describing the practice as offensive. He had previously compared such labels to "The Scarlet Letter," arguing that as AI becomes integrated into more development stages, separate labeling will gradually lose its significance.
Steam currently requires developers to disclose specific uses of generative AI. The store page for Call of Duty: Modern Warfare III notes that the team used such tools to create some game assets. Valve states that this policy aims to maintain transparency, allowing buyers to understand how content is produced; the platform does not prohibit developers from adopting new technologies, and related rules may continue to adjust as technology evolves.
The controversy also involves rights to training materials, AI's impact on creative processes, and the environmental costs of large AI systems. Epic recently proactively mentioned using AI-assisted programming in an update to the Epic Games Launcher; its Unreal Engine game creation event initially set requirements for generative tools, later changing to allow participants to decide their level of usage. Currently, the disagreement centers on balancing consumer right-to-know with developer reputation risks, and Sweeney has not yet proposed a specific alternative to the current labeling system.