TL;DR: During the most recent Next Fest demo showcase, many Steam users complained about having to sift through vibe-coded titles with AI-generated assets. The emerging threat of AI-coded clones has also made some developers hesitant to release demos. Valve, sticking to its usual open-door philosophy, advised developers to simply make their games better while promising to continue investigating the issue.
Although Valve forces developers to disclose how they use generative AI in making their games, the company refuses to ban the technology's use outright from Steam. Valve also recently recommended that indie developers concerned about AI clones strive to make their original games better through constant updates and community building.
The company held an extensive Q&A session with developers at the 2026 Busan Indie Connect Festival, with AI a leading topic. Games with AI-generated assets have drawn complaints from Steam users since at least 2025, but the situation arguably intensified this year as vibe-coded titles add to the controversy.
One developer at the event claimed that some developers had received extortion emails threatening to release AI-generated clones of their projects if they didn't pay. Valve's Tom Giardino said this was the first he'd heard of such cases but promised the company would look into them and recommended that affected developers contact law enforcement.
Otherwise, Valve advised indies to make their games harder to copy by continually adding features and gradually building loyal communities instead of relying on a single selling point. Comparing AI games to prior controversies with Greenlight and the current Steam Direct release system, the company reiterated that it doesn't aim to be an arbiter of which titles deserve to be released.
Valve also explained why shoppers might have seen so many AI-generated games during this month's Next Fest, which prompted calls for an AI filter. The company revealed that the event's front page displays games almost completely at random for the first two days before tailoring suggestions to users' preferences. Valve acknowledged that the strategy can surface a lot of low-quality content, but stressed that it keeps things fair. The company is still thinking of ways to address the issue.
While users criticize Valve for its leniency regarding AI, Epic Games CEO Tim Sweeney has once again called on Valve to drop its AI labeling policy. Calling the rule a "political act," Sweeney accused the company of fomenting an anti-AI hate mob. Epic Games recently released a new vibe-coded version of its launcher, and Sweeney admitted to using AI to develop Unreal Engine features.