Epic Games AI-first production is becoming a central part of the company’s development strategy, with the Fortnite maker directing employees to increase their use of artificial intelligence tools. The shift reportedly includes AI-written code and AI-generated artwork for an upcoming Disney-linked video game.
According to a Bloomberg report cited in the supplied account, developers working on the project have been instructed to adopt an AI-first production model, using tools such as Claude. One of the game’s directors reportedly told employees, “No more hand-written code,” signalling a major change in how development work is expected to be carried out.
Under the proposed approach, human developers would guide and manage production while AI tools handle more of the coding and content creation. The director also reportedly said the game’s artwork would be generated through full AI workflows.
Disney-Linked Game Faces a Delay
The project is believed to be a shooting game featuring characters from Marvel and Star Wars. It was originally planned for release in March, but a revised release date is expected to be announced later.
The AI-first push comes as Epic Games makes broader changes to its development processes. Chief executive Tim Sweeney described the transition as a major shift towards AI, saying the company was moving developers around to accelerate adoption.
However, Sweeney has rejected the suggestion that the strategy is intended to replace employees with AI.
In a post on X, he said the aim was not to produce the same amount of work with fewer people, but to help teams build more and better products while extending the benefits of AI across development using Unreal Engine.
Epic Games’ AI Shift Follows Major Layoffs
The announcement comes months after Epic Games laid off approximately 1,000 employees in March 2026, representing around 20% of its global workforce.
The company attributed the cuts to business pressures, including lower engagement with Fortnite. The restructuring was expected to generate more than $500 million in cost savings.
The timing has raised questions about how the company’s increased reliance on AI will affect its workforce, even as management says job reduction is not the objective of the new strategy.
Employees Reportedly React With Concern
The Bloomberg report said developers were surprised by the announcement during an internal video call. Some reportedly raised concerns about AI-generated errors and how developers would handle problems produced by automated coding tools.
The reported reaction highlights a broader challenge facing the gaming industry: while AI can accelerate production, teams must still review outputs, identify errors and maintain quality.
Sweeney has argued that Epic is adapting to an industry-wide technological shift. He said the company’s goal was to navigate the AI transition and help developers produce better code and content more quickly.
AI Adoption Across the Technology Industry
Epic Games is not the only company increasing its use of AI in software development. Other technology firms have also reported expanding AI-assisted coding, while some companies have reconsidered their reliance on external tools amid rising costs.
For Epic, the key question will be whether an AI-first workflow can deliver faster development without compromising creative quality, technical reliability or the role of human developers.
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