Tim Sweeney criticizes Steam’s AI disclosure labels for games

Epic Games CEO Tim Sweeney has criticized Valve’s AI disclosure labels on Steam, calling the policy “really irresponsible” in a new interview with PC Gamer.

Sweeney argued that Steam’s labeling puts developers in a difficult spot if they use AI tools during production. In his view, AI-generated or AI-assisted assets aren’t meaningfully different from other production shortcuts like asset stores or photoscanning, since the finished game’s design, writing, and play still matter more than how an individual object was made.

He said developers who want visibility often feel they need to launch on Steam, but then risk being marked in a way that can invite backlash. “You have to get this Scarlet Letter of AI attached to your product,” Sweeney said, arguing that it can make success harder for smaller teams already competing in a crowded market.

Sweeney also pushed back on the idea that AI in development is mainly a public relations issue. He framed it instead as a question of tool adoption, particularly for coding assistants. He said there isn’t a realistic “prompt-to-game” tool on the horizon, but argued that current AI tools can speed up tasks like bug hunting and programming support.

He did acknowledge that some early AI companies used questionable methods to gather training data, saying those practices “shouldn’t” happen. But he also said he believes the industry is moving toward better licensing practices for future models.

This isn’t Sweeney’s first public criticism of AI labeling. He has previously argued that platforms should stop tagging games made with AI, saying the use of the technology shouldn’t determine how a game is judged.