Epic Games Pivots to 'AI First' Model for Disney Collaboration

Epic Games is transitioning to an "AI first" development strategy for its $1.5 billion collaboration with the Walt Disney Company, as first reported by Ars Technica. The pivot, which cites reporting from Bloomberg, involves a mandate for "no more hand-written code" and art assets created via "full AI workflows," as detailed in internal employee messages viewed by Bloomberg.

Under this new model, human developers will no longer write code manually but will instead manage and guide assets generated by AI models, including Anthropic's Claude. The shift comes as the partners' Marvel- and Star Wars-themed shooter, originally scheduled for a March 2027 release, has been delayed indefinitely. Bloomberg reports the project has been hampered by understaffing and slower-than-expected development.

Epic CEO Tim Sweeney confirmed the transition on social media, stating the company is moving developers to "retool for maximum AI acceleration" to enable teams to build "MORE and BETTER stuff." In a separate statement, an Epic spokesperson described the move as "AI-accelerated development" led by developers acting as "visionaries and creative drivers."

Sweeney has previously expressed a bullish outlook on AI, telling IGN in June that the technology could allow small teams to create interactive worlds with "immense amounts of characters." He also told industry representatives last November that AI disclosure tags are unnecessary because AI tools will be integrated into nearly all future production. This shift follows a period of volatility for the company, including the layoff of more than 1,000 employees in March, which Epic attributed to a "downturn in Fortnite engagement."