Epic Games shifts to AI-first production model, Bloomberg reports
Epic Games is shifting its development strategy toward an “AI-first” production model, a move that has resulted in the indefinite delay of a shooter project featuring Marvel and Star Wars characters. According to Bloomberg, as reported by outlets including LevelUp and 3DJuegos, the company has instructed staff to prioritize artificial intelligence tools, such as Anthropic’s Claude, over traditional manual coding and artistic workflows.
Reorganization and the "AI-First" Mandate
Company CEO Tim Sweeney confirmed the strategic pivot in a post on X, stating that Epic is "reorganizing developers to refocus efforts for maximum acceleration in AI usage." Sweeney emphasized that the goal is not to reduce headcount but to enable the existing team to create "more and better things" and to extend these capabilities to external partners using Unreal Engine. He added that the company aims to help its clients "succeed by creating better code and content more quickly."
Internally, the transition has been more prescriptive. Jake Jones, Epic Games’ director of communications, confirmed the direction in a statement, noting that the company is "adopting AI-accelerated development, led by Epic developers who are the visionaries and creative engines of everything we do."
Impact on the Disney-Collaborated Shooter
Under the new directive, the initiative aims to reduce development time by tasking tools like Claude with the bulk of production, while human staff are assigned to supervise and polish the output. One of the game’s directors communicated internally that "there will be no more handwritten code," and all project art will be "generated through workflows based entirely on AI."
The mandate has generated friction within the studio. Some employees expressed skepticism regarding the efficacy of the new process, specifically noting concerns about the reliability of code generated by AI tools, with some internally joking about the prospect of having to fix errors created by the software itself.
Epic Games Pivots to AI After Major Layoffs
The pivot to AI follows a period of significant contraction at Epic Games. In March 2026, the company laid off more than 1,000 employees, citing a period of slow growth. While Sweeney stated at the time that those cuts were not related to AI, the current reorganization is being implemented by a significantly smaller workforce. This shift occurs alongside a major financial partnership; in 2024, Disney invested $1.5 billion in Epic Games in exchange for an equity stake in the company.
The move places Epic Games at the center of an ongoing debate regarding the role of automation in creative industries. Data from PC Gamer highlights a regional disparity in adoption rates, noting that only 36% of developers in the United States currently use AI in their workflows, compared to 85% in Japan. A recent Harvard University study suggests that using AI for programming does not improve productivity and, at best, produces results equivalent to manual efforts. As Epic transitions its internal production to this model, the company has yet to provide a revised release window for its high-profile collaboration with Disney.