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The first is what Valve refers to as pre-generated content.

This includes anything that was created with AI assistance during development, like artwork, code, or sound.

Developers will now have to promise Valve that any pre-generated material does not contain any illegal or infringing content.

The second category is live-generated content: material which is created while the game is running.

Ive already spotted plenty of games filled to the brim with AI-generated assets on the platform.