Epic Games Adopts AI-First Model for Disney Collaboration Game Development

Image: Ars Technica · Source

Epic Games is shifting to an AI-first approach for a delayed Marvel-Star Wars shooter developed with Disney, using AI to generate code and art and assigning human developers to manage AI outputs.

Epic Games is transforming its game development strategy to be “AI first” for its collaboration with the Walt Disney Company on a shooter featuring Marvel and Star Wars themes. According to a Bloomberg report citing insiders, the developer plans to rely entirely on AI models for writing code and creating artwork for the project. Human developers will primarily oversee and guide the AI-generated assets rather than produce them manually.

This shift marks a significant departure from conventional game production that typically involves extensive hand-written code and traditional art creation. The AI workflows reportedly include models such as Anthropic’s Claude, which are tasked with generating the core components of the game.

Initially announced in early 2024, Epic and Disney's $1.5 billion collaboration aimed to release the shooter by March 2027. However, the project is now delayed indefinitely amid this internal restructuring toward AI-driven development and slower-than-expected progress, as reported.

Epic Games emphasized that this pivot is designed to accelerate development rather than reduce staff. CEO Tim Sweeney stated on social media that the goal is to enable developers to build more and better content by maximizing AI’s potential while ensuring all Unreal Engine teams benefit.

Sweeney has publicly expressed optimism about AI’s potential to revolutionize game development. Earlier in 2026, he envisioned AI enabling small teams to create games with expansive interactive worlds and extensive dialogue through simple setups. He also dismissed the need for AI usage disclosure since AI integration is expected to be ubiquitous in future game production.

Despite layoffs in March 2026 primarily due to Fortnite’s engagement downturn, Epic maintains that AI tools are meant to increase efficiency and not replace human jobs, as highlighted by Fortnite’s Senior External Development Manager Stephanie Arnette.

Epic’s AI experiments have faced challenges, such as an incident where an AI-voiced Darth Vader character in Fortnite uttered inappropriate language before a fix was issued. A 2026 industry survey found around 30 percent of game studio professionals use generative AI for tasks like research and brainstorming more than for coding or prototyping.

Epic’s move reflects a broader trend toward integrating AI deeply into creative pipelines, signaling a transformative phase in how large-scale game projects might be conceived and developed in the near future.