Epic CEO Tim Sweeney Calls for Dropping AI Labels on Game Stores as Technology Becomes Ubiquitous

Reviewed byNidhi Govil

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Epic Games CEO Tim Sweeney argues that Steam and other game stores should eliminate 'Made with AI' tags, claiming they will become irrelevant as generative AI becomes standard in game development. His comments have sparked debate about transparency and consumer choice in the gaming industry.

Epic CEO Challenges AI Labeling Standards

Epic Games CEO Tim Sweeney has ignited a heated debate in the gaming industry by arguing that digital game stores should abandon their "Made with AI" labeling requirements. In a series of posts on X, Sweeney contended that such tags "make no sense for game stores, where AI will be involved in nearly all future production"

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Source: Digit

Source: Digit

Sweeney's comments came in response to a user calling for Steam and other digital marketplaces to drop their AI disclosure tags. The Epic CEO drew a distinction between different contexts where AI labeling might be appropriate, stating that "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"

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Current Industry Practices and Policies

Steam, operated by Valve, introduced formal AI disclosure requirements in January 2024, requiring developers to clearly label whether games have been created using generative AI tools. The platform distinguishes between "pre-generated" and "live-generated" AI content, with detailed statements appearing on game store pages

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Source: Wccftech

Source: Wccftech

Recent research from Totally Human Media found that 7,818 titles on Steam now disclose generative AI usage, representing 7% of Steam's entire library of roughly 114,126 titles, up from just 1% the previous year

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. In contrast, Epic's own game store does not display AI usage disclosures prominently, taking a markedly different approach from its competitor

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Industry Response and Growing AI Adoption

Sweeney's position reflects a broader trend of increasing AI integration across the gaming industry. Nexon CEO Junghun Lee recently stated it was "important to assume that every game company is now using AI," following criticism of AI-generated voice lines in the publisher's game Arc Raiders

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. This sentiment aligns with broader technology adoption patterns, as Microsoft reports that 91% of its engineering teams use GitHub Copilot

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Source: Tom's Hardware

Source: Tom's Hardware

However, the industry remains divided on AI adoption and disclosure practices. While some companies embrace AI tools, others like Nintendo and Obsidian Entertainment have stated they don't plan to use generative AI for their games in the near future

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. A growing number of indie developers are using "AI-free" as a marketing selling point, suggesting consumer demand for transparency remains strong

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Criticism and Legal Considerations

Sweeney's statements drew immediate backlash from industry professionals and consumers. Former Counter-Strike artist Ayi Sánchez compared AI disclosure to food ingredient lists, while indie producer Mike Bethell suggested that embracing AI labels with pride would result in plummeting sales

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The debate occurs amid ongoing legal uncertainty surrounding AI training data and potential copyright infringement. Media companies have begun suing AI vendors over alleged unauthorized use of copyrighted material, and rights experts expect these cases to shape how courts treat both model training and downstream outputs

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. Valve's disclosure rules represent one way platforms are attempting to navigate this legal uncertainty while providing transparency to consumers.

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