Artificial Intelligence

Epic Delays Disney Project to Focus on AI Development

Epic Games has reportedly pushed back its upcoming Disney video game project to mandate an 'AI-first' production strategy, instructing developers to rely on artificial intelligence for both coding and asset creation.

Radwan AbdulhadiEditor and technology writer

Published: October 13, 2026 · Updated: October 13, 2026 · 3 min read

Epic Delays Disney Project to Focus on AI Development — Image: Engadget

An 'AI-First' Pivot for Epic's Disney Project

Epic Games is reportedly shifting its development strategy significantly, with sources indicating that an upcoming Disney project has been delayed to allow for a heavier reliance on artificial intelligence tools. As detailed in a report by Bloomberg, one of the game's directors informed the development team that the production plan was transitioning to an 'AI-first' model.

According to internal communications cited in the coverage, staff were instructed that there would be 'no more hand-written code,' alongside a directive requiring all art for the project to be generated using full AI workflows. While some employees reportedly hoped the instruction was not entirely serious, the directive aligns with the company's broader push toward artificial intelligence integration.

Company Response and Unreal Engine Integration

Addressing the shift, Epic Games' Communications Director Jake Jones emphasized the studio's stance in a statement provided to Bloomberg. Jones stated that the company is actively embracing AI-accelerated development while maintaining that Epic developers remain the visionaries and creative drivers behind their projects.

This operational pivot arrives as Epic continues introducing a lot of generative AI tools into its Unreal Engine ecosystem, cementing the technology's growing role within the company's core software platforms and broader development pipelines.

Image related to the report from Engadget · Source: Engadget

Background on the Epic and Disney Partnership

The collaboration between the two entertainment giants dates back to a major financial commitment made several years ago. Disney previously announced a substantial investment of $1.5 billion into Epic Games to build out a collaborative games and entertainment universe featuring iconic characters and franchises.

Although multiple Disney-owned characters have successfully crossed over as cosmetic skins within Fortnite over the years, this specialized initiative represents a deeper structural partnership. Earlier reports had heavily rumored that the studio's primary project for Disney was an extraction shooter comparable to Arc Raiders, which faced scheduling adjustments even prior to the recent AI mandate.

Wider Industry Sentiment on Generative AI

The mandate at Epic mirrors a broader, often contentious debate across the broader gaming sector regarding the integration of machine learning tools. According to findings published in this year's survey from the Game Developers Conference, skepticism among industry professionals has noticeably increased over recent years.

Data from the report indicated that 52 percent of surveyed developers believe generative AI is detrimental to the industry, rising from 30 percent in previous evaluations. Furthermore, while many studios experiment with the technology, professionals frequently limit its use to targeted tasks such as preliminary research and programming assistance rather than full-scale asset generation.