Entertainment Companies Boost Spend in Generative AI
Amidst dual strikes in Hollywood, research shows that 96% of entertainment companies are expanding expenditures in generative artificial intelligence.
As the Writer’s Guild of America (WGA) turned down a recent offer from the Alliance of Motion Picture and Television Producers, the dual strikes of writers and actors continue, while a paradigm shift is unfolding in the entertainment industries worldwide. A recent report from Lucidworks, a search and insights company, indicates that almost every major player in the entertainment and media sector plans to significantly upscale their generative AI (GAI) expenditure, with leading companies in entertainment, technology, and consumer products spearheading this movement.
Not limited to the entertainment industry, a staggering 96% of decision-making executives are prioritizing investments in GAI. China tops the list with every surveyed company investing in this domain. The U.K., France, India, and the U.S. are not far behind, with over 90% of their businesses pouring resources into GAI. This data is based on Lucidworks’ global study covering 6,000 survey respondents and more than 100 employees involved in AI investment decisions. Mike Sinoway, CEO of Lucidworks, emphasizes the urgent need for companies to understand the strategies and operations of GAI.
The message from these data is that an overwhelming majority of global industries are diving into generative AI. It leads to Hollywood writers’ concern for their job security. An OpenAI study warns of the potential ramifications of large language models on the labor market, especially for writers. While it doesn’t strictly translate to job losses, AI will inevitably redefine job roles and responsibilities, with GAI’s capability of producing content posing disruptions across multiple industries.
While the content quality is up for another debate, generating a complete movie from mere text prompts might become a reality sooner than expected. Some experts even project that 90% of Hollywood's content could be AI-driven, at least in part, by 2025.
The ripple effects of this AI surge extend to actors as well. The emergence of deepfakes challenges the very essence of human contribution. Jeremiah Owyang, a renowned entrepreneur and analyst, succinctly yet brutally captures the essence: synthetic actors are hassle-free—they won’t strike, demand higher wages, or take days off. Their capacity to be featured in millions of highly personalized ads could be a goldmine for studios but a looming threat for real-life actors.