Nexus Mods picked the mildest of the available options: not a ban, but mandatory labeling. That seems like the pragmatic call — modding culture is split between 'AI slop' purists and authors quietly using generative tools for textures, upscalers and voice lines, and an outright ban would just push the practice underground. The weak spot is enforcement: self-declared tags are only as honest as their authors, and reliably detecting generated assets is still an unsolved problem. Even so, the decision matters beyond gaming — when the largest UGC repository of a handcraft-obsessed hobby normalizes disclosure, it adds momentum to the transparency rules other platforms are inching toward. Worth watching whether labeled AI mods get punished or legitimized by download numbers; that data will shape the next policy round.