Epic Reportedly Delays Disney Game for an AI-First Plan

Epic reportedly delayed a Disney game and told developers to adopt an AI-first production plan with no hand-written code. The move matters for creators tracking AI workflow mandates.

What happened

Epic Games has reportedly delayed an upcoming Disney video game to shift production toward an "AI first" plan, according to sources cited by Bloomberg. The report says one of the game's directors told the team the project would adopt an "AI first" production plan. An internal message stated: "No more hand-written code." The same directive ordered all art for the project to be "generated with full AI workflows."

The publication's sources said the new approach was not universally well-received by developers, with some employees allegedly hoping the request wasn't totally serious. Epic has already been pushing many generative AI tools into its Unreal Engine platform this year. Epic Communications Director Jake Jones said in a statement to Bloomberg: "We're embracing AI-accelerated development, led by Epic developers who are the visionaries and creative drivers for everything we do."

Disney announced a $1.5 billion investment into Epic in 2024. While several Disney-owned characters have appeared as Fortnite skins over the years, the deeper collaboration was aimed at creating a "games and entertainment universe." Earlier this year, it was rumored that the developer's most promising project for Disney was an extraction shooter a la Arc Raiders. That game was purportedly due to launch in November, although Bloomberg's latest report said the date had been pushed back to March even before the new AI mission was given.

Key facts

• An internal message for the Disney project said "No more hand-written code" and ordered all art "generated with full AI workflows."
• Some developers reportedly hoped the directive wasn't serious, while Epic Communications Director Jake Jones defended AI-accelerated development.
• Disney invested $1.5 billion into Epic in 2024; the collaboration was aimed at creating a "games and entertainment universe."
• The rumored Disney extraction shooter was due in November and was already pushed back to March before the AI-first directive.
• GDC's annual survey found Fifty-two percent said gen AI was bad for the industry, up from 30 percent in 2025; many use it for research and programming rather than asset creation.

Our analysis

The most significant change is not the delay itself, but the move from optional AI assistance to a mandated AI-first production line for a high-profile licensed project. Epic owns Unreal Engine and has been embedding generative AI tools into the platform this year, so a Disney title provides a visible test case. This likely means creators and brand partners will face stricter expectations to accept AI-generated assets and code, not just experiment with them.

The internal pushback matters because it clashes with broader developer sentiment. GDC's survey found Fifty-two percent said gen AI was bad for the industry, up from 30 percent in 2025, and that use is concentrated in research and programming rather than asset creation. Ordering full AI workflows for art therefore cuts against where many practitioners currently feel comfortable. The Disney IP angle adds another layer: a brand known for controlled character presentation is now attached to a pipeline that removes hand-written code and mandates AI-generated art, which suggests quality and IP-control tensions may intensify.

For operators, this is a signal to treat AI workflow mandates as a contract and pipeline issue. The project was already pushed from November to March before the new AI mission, suggesting the AI-first order adds pressure to an already shifting timeline. Brands and creators working with platform owners should not assume AI use will remain optional.

What it means for operators

• Audit client and platform agreements for AI-production clauses now. A client or platform may require AI-generated assets or code, especially on licensed or high-budget projects.
• Build a documented review step for AI-generated art and code before delivery. The Disney-Epic case shows that full AI workflows can be imposed even when teams are uncomfortable.
• If your workflow touches Unreal Engine, test its generative AI tools this year. Platform-level AI features can become defaults faster than team training cycles.
• Track developer and creator sentiment in annual surveys — Fifty-two percent negative sentiment suggests forced AI adoption may create retention and quality risks, so roll out changes with clear review and attribution rules.