Key highlights:
- Epic Games is working on new EULA rules so AI can train on things made with Unreal Engine and MetaHuman.
- CEO Tim Sweeney says Epic is already using AI tools in making Unreal Engine code and features.
- Epic’s engineers use Claude Code and Codex to boost engine performance, fix bugs, and speed up development.
- Developers will still get to decide if AI training is allowed for their own games.
Epic Games is leaning more into AI-assisted software development as it builds future versions of Unreal Engine and looks at how its tools are used. CEO Tim Sweeney has been speaking up lately about AI and how it shapes software. Epic recently confirmed that it now uses AI tools in developing its engine.
The company also said it plans to drop current limits on AI training using outputs from Unreal Engine and MetaHuman. These changes have people wondering how Epic will handle faster development, licensing, and what choices game developers will have going forward.
Epic Games Plans to Remove Restrictions on AI Training
Tim Sweeney says Epic is working to change its EULA so AI training will be allowed on outputs created with Unreal Engine and MetaHuman. Right now, the rules block this kind of usage, but Epic wants to remove that limit.
Sweeney spelled out the change in a post on X, responding to criticism about how Epic deals with AI and intellectual property. He also pointed out that developers using Epic’s tools get to choose the terms for their own games, so they can decide to allow or block AI training as they see fit.
This update marks a shift in Epic’s attitude about content made with its popular game development tools. But the company hasn’t shared any more details about the EULA changes yet.
All this comes amid backlash against tech companies that push AI development while fighting unauthorized copies of their products. Sweeney says Epic’s stance on protecting its IP is separate from its embrace of AI tools. He made it clear that using Fortnite’s IP without permission isn’t okay, even with all the new AI work.
Epic Games is changing its Unreal Engine and MetaHuman EULA to allow AI training on content created with its tools. Tim Sweeney confirmed that Epic currently restricts AI training on Unreal Engine and MetaHuman outputs, but the company is working to remove that restriction. Developers will still be able to decide whether AI training is allowed for their individual games. “Does Epic restrict AI training on outputs of Unreal Engine and MetaHuman? Yes currently but we are working to remove this restriction from EULA terms.”
— Pirat_Nation 🔴 (@Pirat_Nation) October 27, 2026
Epic Games Confirms AI Use in Unreal Engine Development
Epic’s licensing changes aren’t the only news. The company says its engineers are already using AI to help build Unreal Engine. Sweeney confirmed this in an October 23, 2026, post on X, following an earlier statement about moving toward AI-assisted development.
Marcus Wassmer, Epic’s Executive Vice President of Development, told This Week in Videogames that engineers now work with tools like Claude Code and Codex to write code, build new features, and improve existing systems.
Most of the work right now focuses on Fortnite, Unreal Editor for Fortnite (UEFN), and Unreal Engine 6. There’s talk about a possible Unreal Engine 5.9 release, but it would be a smaller update focused on specific systems, with changes powered by AI.
Epic says AI has helped tackle parts of the engine that had challenged engineers for years. It has helped solve non-deterministic cooking bugs that lasted over a decade and speed up shader compression to shrink patch sizes.
Wassmer mentioned a major rewrite of the DirectX 12 rendering layer. Work that would have taken one engineer three to six weeks got done in about a week, with better CPU performance and fewer bugs.
AI is Changing How Epic Engineers Work
Epic says AI is letting its developers take on huge engineering tasks that used to be too time-consuming or tough. Some of these projects mean changing thousands of files so Unreal Engine becomes more modular and customizable.
AI tools now help keep internal test suites running, expand test coverage, monitor PC stability in Fortnite, and pinpoint problems tied to certain hardware and graphics drivers. Epic is starting to use automated root cause analysis and fix generation to handle tech issues quicker.
Wassmer confirmed that Epic is using what’s known as vibe coding. In this approach, engineers guide AI tools as they refine and improve code, instead of writing it all themselves. He emphasized that this isn’t about generating the whole engine in one step; engineers still direct everything and make sure memory use, performance, and scalability stay on track.
Epic believes AI-assisted development will soon be the norm across the industry. Wassmer said the bigger risk is moving too slowly, not worrying about doubts around AI. He argues these tools help teams build features faster, cut back on technical problems, and bring older software up to date.
Epic talked about AI integration in its plans for Unreal Engine 6, too. In a June 2026 blog post, the company said internal teams were looking into what code generation could do and where it falls short. Now, Epic’s statements suggest these experiments are part of real-world engineering, with AI supporting both new development and upgrades to existing systems.
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