Tim Sweeney says Steam’s AI labels could be used to hurt game sales

Epic Games chief executive Tim Sweeney has attacked Steam’s rules requiring developers to disclose generative-AI content, arguing that the labels can be used to organise boycotts and deprive studios of sales. In a series of posts on X from Oct. 23 to Oct. 25, Sweeney called the policy a political act. He said developers were effectively being made to write political statements that could be deployed against them by a “hate mob.” The primary purpose of Steam’s two disclosure categories, he argued, was to fuel cancel campaigns unless developers accepted the movement’s political goals. Sweeney said the choice was especially consequential for studios that want broad visibility for a new game. In his view, developers face a choice between forgoing productivity-enhancing technology or accepting a label that could damage a game’s commercial prospects. He compared AI disclosures with mandatory political essays and demands to list voting histories. Steam has required disclosures of generative-AI use since 2024, while allowing the vast majority of games using the technology onto the service. Valve updated its developer form on Jan. 16 to clarify the policy’s boundaries. The revised rules require developers to describe AI-generated content that appears in a game or its associated materials, including marketing assets and store pages. They also cover content generated during gameplay, such as AI-created images or text. Valve does not require disclosures for workflow uses, including code-helper software and other efficiency gains. That distinction means the rules focus on AI-created material consumed by players, such as artwork, sound, narrative and localisation, rather than on every use of AI during production. Research cited by GamesIndustry.biz found that 7% of Steam games disclosed generative-AI use in development in July 2025, up from 1.1% in an earlier comparison period. Sweeney’s comments prompted pushback from developers and other online respondents. David Goldfarb said customers had a right to know what they were buying, while adding that it was uncertain whether disclosure particularly disadvantaged small teams that needed AI to survive. He called Sweeney’s description of a hate mob far-fetched and argued that customers would still buy games they wanted. Epic itself labels AI-created materials on its Fab asset marketplace. Sweeney said that was appropriate because Fab serves professional buyers who need to know the origin of what they purchase, and maintained that Epic had been open with developers and the public about its own AI use.