Key Takeaways
- Hollywood has increasingly adopted generative AI (gen-AI) technology in 2025, despite concerns over its quality and potential impact on the industry.
- Major studios such as Disney, Universal, and Warner Bros. Discovery have partnered with AI firms, while others like Netflix and Amazon have begun to use gen-AI for various production tasks.
- The use of gen-AI has raised questions about the potential for cost-cutting and the devaluation of human creativity in the entertainment industry.
- Smaller startups, such as Asteria and Showrunner, have emerged to develop film projects using gen-AI, but their output has been met with skepticism.
- The future of gen-AI in Hollywood remains uncertain, with some studios investing heavily in the technology while others remain cautious.
Introduction to AI in Hollywood
AI isn’t new to Hollywood, but 2025 marked a significant turning point in its adoption. For years, the entertainment industry has used various forms of generative AI for post-production processes, such as de-aging actors and removing green screen backgrounds. However, this year saw a surge in the use of gen-AI that can generate text-to-video content, which has limited practical applications in traditional production workflows. Despite the hype, there is yet to be a gen-AI project that has demonstrated its worth.
The Confluence of Hollywood and AI
The relationship between Hollywood and AI didn’t start on a positive note. Studios were initially wary of AI firms, as their video generation models had been trained on copyrighted intellectual property. Several major production companies, including Disney, Universal, and Warner Bros. Discovery, filed lawsuits against AI firms for this reason. However, instead of pursuing legal action, some of Hollywood’s biggest players chose to partner with AI companies. This new era of gen-AI partnerships is still in its early stages, but it’s likely to lead to significant changes in the industry.
The Rise of Smaller Players
In addition to larger companies like Google and OpenAI, several smaller players have emerged in the entertainment industry, seeking to develop film projects using gen-AI. Asteria, a startup founded by Natasha Lyonne, aims to create "ethically" engineered video generation models, while Showrunner, an Amazon-backed platform, allows subscribers to create animated "shows" from descriptive sentences. These companies are eager to legitimize the use of gen-AI in film and TV development, but their output has been met with skepticism.
The Quality of Gen-AI Content
The quality of gen-AI content has been a major concern, with many examples of poorly produced videos and animations. Showrunner’s output, in particular, has been criticized for its low quality, with some comparing it to "clunky JibJab cartoons." Despite this, Disney has partnered with OpenAI to allow users to create AI videos featuring characters from Star Wars, Marvel, and other franchises. This move has raised questions about the potential for cost-cutting and the devaluation of human creativity in the entertainment industry.
The Future of Gen-AI in Hollywood
The future of gen-AI in Hollywood remains uncertain, with some studios investing heavily in the technology while others remain cautious. Netflix has announced its support for gen-AI, releasing guidelines for its partners to follow, while Amazon has used gen-AI for dubbing and TV recaps, with mixed results. Disney plans to dedicate a section of its streaming service to user-generated content sourced from Sora, its AI platform, and will encourage employees to use OpenAI’s ChatGPT products. As the industry continues to evolve, it’s likely that gen-AI will play an increasingly significant role, but its impact on the quality of content and the value of human creativity remains to be seen.
Conclusion
In conclusion, the adoption of gen-AI in Hollywood has been a significant development in 2025, with major studios and smaller startups investing in the technology. While the quality of gen-AI content has been a concern, the industry is likely to continue to evolve, with gen-AI playing a larger role in production processes. As the technology improves, it’s possible that gen-AI will become a valuable tool for creators, but for now, its impact on the entertainment industry remains uncertain.