AI’s Rising Influence in Entertainment in 2024
Experts predict a transformative year with AI reshaping content creation and user engagement, amid regulatory changes and a shift in platform algorithms.
The year 2023, marked by writers and actors strikes, has set a challenging and evolving backdrop for Hollywood as it steps into 2024. A critical area of focus remains the role of Artificial Intelligence (AI) in the business, with the potential of reshaping the landscape of advertising and streaming. While 2024 can bring its own surprises, here are three insightful predictions compiled from analysts and industry experts about AI development in the new year, from content creation to user engagement.
Peter Csathy, chairman of advisory firm Creative Media, has put a spotlight on the evolving dynamics between AI and content platforms. He highlights how platforms like Netflix are beginning to quietly experiment with AI to cut costs and generate new content. This shift is part of a broader trend where major streamers are expected to focus more on high-value, reprogrammable franchise content. Csathy notes that while companies like Walt Disney have set the bar high with brands like Marvel, Pixar, and Star Wars, tech-first streamers are also turning to AI as a cost-effective tool for content creation and curation.
In the meantime, Csathy also foresees regulatory developments in the U.S. concerning AI, similar to recent measures in the EU. He predicts that U.S. Congress and regulators will develop guidelines to ensure transparency in AI operations and protect against the misuse of personal attributes for profit. These regulations are expected to influence how AI-generated content is perceived and monetized, particularly in the realm of copyright and content exclusivity. The move towards regulation would indicate a growing recognition of AI's impact on creative industries and the need for a balanced approach to utilizing the tool while safeguarding individual and proprietary rights.
Another prediction comes from Mark Mulligan of MIDiA Research, who believes that 2024 will be a pivotal year in the relationship between algorithms and user preferences. He observes that algorithms on large platforms are increasingly pushing content that aligns with platform monetization goals, rather than user preferences. This shift may lead to growing dissatisfaction among users, who feel that their choices are no longer the primary focus of content recommendations. Mulligan's forecast suggests that this trend might create opportunities for new platforms that prioritize user needs, potentially resetting the cycle of content delivery and consumption.
Technological developments are predicted to continue influencing the film industry and the financial dynamics of media companies, with the industry facing more technological innovation, regulatory changes, and evolving consumer behaviors.