The statement did include that all art should also be AI-generated, which is a whole other thing. I'd also make a large difference between most code being AI-generated to start with, and actually not writing by hand at all anymore.
No hand written code is practically the industry norm now, yet game assets and visuals is still mostly done by hand. The backlash would seem to line up more with Epic encouraging AI generated art, which is incredibly unpopular in the art and game dev communities.
[0] https://arstechnica.com/gaming/2026/10/report-epic-games-goe...