Epic Games delays Disney game to build it with far more AI

Epic Games, the studio behind Fortnite and the Unreal Engine development platform, has reportedly delayed an upcoming game made in partnership with entertainment giant Disney. Bloomberg, citing unnamed sources, says the reason is a decision to build the project with much heavier use of artificial intelligence (AI).

According to the report, one of the game's directors told the team the project was moving to an "AI first" production plan. The internal message reportedly said "no more hand-written code" and required all art to be "generated with full AI workflows." The sources say the shift was not welcomed by everyone on the team, with some employees allegedly hoping the instruction was not entirely serious.

Epic has already added a number of generative AI tools to Unreal Engine this year. Jake Jones, the company's communications director, told Bloomberg in a statement that Epic is embracing AI-accelerated development, led by Epic developers.

Background

Disney announced a $1.5 billion investment in Epic in 2024. Several Disney-owned characters have appeared as Fortnite skins over the years, but the deeper partnership was meant to create a "games and entertainment universe." Earlier this year, rumors suggested the studio's most promising Disney project was an extraction shooter similar to Arc Raiders. It was reportedly due in November, though Bloomberg's latest report says the date had already been moved to March before the AI directive was issued.

Industry sentiment

The annual survey from GDC, the game developers' conference, indicates a growing number of developers see generative AI as harmful to the industry. This year 52 percent said so, up from 30 percent in 2025. The survey also found that many in gaming do use generative AI tools, but mainly for research and programming rather than creating assets.