Epic Games CEO Tim Sweeney criticized it. steam's AI policy in several recent statements. Valve's requirement to disclose AI use on Steam doesn't make much sense and is becoming increasingly irrelevant, according to industry veterans.
Starting in January 2024, Valve will require developers to disclose their use of AI-generated content in their Steam listings. This mandate was added to the Steam Distribution Agreement, the company's standard agreement for distributing software on that platform. This policy follows months of reports claiming that Valve has banned some games with AI-generated content from Steam. In a prepared statement released after the change, the company said the disclosure requirements would allow it to “release the majority of games” that rely on generative AI.
Game Developers Take a Stand Against Generative AI
In response to the debate surrounding generative AI, some game developers have made their opposition to it very clear.
Epic Games Boss Says Steam's AI Disclosure Policy 'Makes No Sense'
Epic Games CEO Tim Sweeney took aim at Valve's AI policies in several messages posted to X (formerly Twitter) in late November 2025. In response to one tweet calling for Valve to remove its AI disclosure label, an executive said the order “makes no sense for the game store.” More and more titles are now relying on generative artificial intelligence solutions in some shape or form. A July report from Totally Human Media supports Sweeney's observations, finding that one in five Steam games released in 2025 disclosed the use of AI. The same source estimated that only 7% of all titles on the platform currently contain disclosure, and concluded that AI adoption is growing rapidly among game developers.
Epic CEO predicted that the 'Made with AI' label will soon be included in almost all games.
Sweeney said he is not opposed to AI labels in general and acknowledges their relevance in contexts where copyright or ownership is important, such as art exhibitions and content licensing platforms. But as the number of game developers embracing AI grows, he argued that the label is losing much of its meaning on platforms like Steam and the Epic Games Store, and expects it will soon have to apply to almost every listing.
Epic Boss Likens Steam's AI Labels to Shampoo Brand Reveals
Sweeney's Nov. 27 remarks drew polarized reactions from social media users. One post challenging his beliefs about AI use by saying “customers have the right to know” prompted the executive to double down on his position with a cheeky analogy. Sweeney said, “Developers can be mandated to disclose the brand of shampoo they use,” and asserted that if AI disclosure is mandated, there is no reason to stop using AI. Some users pointed out that developers' shampoo preferences don't impact game development as much as their use of AI, but Sweeney didn't respond further.
Why stop using AI? Developers may be required to disclose the brand of shampoo they use. Customers deserve to know lol.
Award-winning developer goes against Sweeney's beliefs about 'Slop Machines'
There is a growing belief among the most vocal sections of the online community that AI use is linked to lower quality titles. This sentiment extends beyond consumers. Thomas Bithell, developer of critically acclaimed puzzle platformer Thomas was aloneSweeney's AI comment called it “really said.” The award-winning developer posted on BlueSky on November 27 to directly criticize Sweeney's support for generative AI. “Imagine being convinced that you need a slop machine to get the job done, and then convincing yourself that everyone needs a slop machine,” Bithell wrote.
Generative AI isn't going away, on Steam or anywhere else.
As recently controversial ARC Raiders' When it comes to using AI, even some of today's most popular and critically acclaimed games are not immune from criticism for incorporating generative AI. However, if Sweeney's predictions are correct and the industry adopts these technologies broadly, the use of AI could become commonplace for both players and developers. In this case, Valve will once again amend the Steam policy, which currently mandates AI disclosure at a basic level, to only recognize two official labels: pre-generated and real-time generated, indicating whether the AI content is bundled with the game or generated in real-time.
Steam's pre-generated labels apply not only to visuals and music, but also to AI-generated code. This may be the most widespread form of AI use in game development today. A 2025 Stack Overflow survey found that 84% of the platform's users are already using AI tools or plan to adopt them soon, and professional developers generally expressed more favorable views of these tools than beginners learning to code. The survey doesn't provide industry-specific details, so it's unclear whether web developers use AI more than game developers, but the findings suggest that Steam's AI-generated content labels may already be outdated, as Valve is applying them equally to code and art.
Source: Steam
