Steam Next Fest returns this season with a notable trend: nearly one in five participating demos now carry generative AI disclosure tags. Eurogamer's analysis of Steam DB data reveals that 1,704 out of 8,700 titles in the showcase have been flagged for AI usage, representing roughly 19.5 percent of all entries.

Valve's approach to AI in gaming shifted significantly in 2024 when the company updated its Steam guidelines. The new policy permits broader AI adoption while requiring developers to inform players about generative AI implementation. However, Valve carved out exceptions for "efficiency gains" that don't trigger disclosure requirements, creating potential loopholes for developers to exploit.

The prevalence comes despite ongoing player backlash against AI-generated content in released games. Indie developers have been particularly vocal about transparency concerns, while major titles like Crimson Desert faced criticism for shipping with unreplaced AI assets. Even games embracing AI from inception, such as Arc Raiders, have scaled back their generative AI usage in recent months.

This disclosure trend reflects growing tension between AI adoption and consumer expectations. Valve's framework attempts to balance innovation with transparency, but the high percentage of flagged demos suggests many developers are still navigating what constitutes acceptable AI integration in their workflows.