GenAI Expected to Increase Profits Within Media Industry

A recent survey from PwC sees Generative AI improving quality and reducing costs within the entertainment industry. 

Generative AI (GenAI) has made a significant impact in the entertainment and media industry over recent years, presenting opportunities as well as difficulties for businesses. According to PwC’s most recent CEO Survey, nearly half of US CEOs anticipate GenAI increasing profits this year, with 61% expecting improvements in product and service quality.

Much of the current discourse around AI in entertainment and media has centered on cost reduction and control instead of creating new streams of revenue. Text generation tools led by GenAI can transform ideas into stories, create believable human conversations, convert text into visuals and storyboards, and produce animated 3D models from 2D videos or static images. These tools also translate to the post-production space by streamlining and accelerating the editing process. In Japan, anime and comic producers are using AI to enhance and speed up their production workflows. Similarly, in Indonesia, GenAI is being utilized to boost productivity in the creative industries.

However, the use of AI tools and content has raised concerns about creators' rights and appropriate long-term compensation, which were pivotal issues in the 2023 Hollywood writers' strike and the ensuing agreement with the Writers Guild of America. Looking towards the future, the industry is expected to see a rise in the rate of high-quality content production while the associated costs are expected to decrease.

The critical issue is how exactly GenAI will lead to greater profit and aid businesses in tapping into new revenue streams. One promising area is advertising, the fastest-growing sector within entertainment and media. At the moment, GenAI works to select key pieces of texts to produce summaries, especially in sports media. In this way, GenAI is being used for creating content and as a tool in advertising. 

So far, many examples of GenAI’s use have aimed at enhancing speed, work efficiency, and cost reduction. Moving forward, the industry will need to explore how to fully utilize AI and its ability for exploration and trial and error to enhance creative projects. The promise of GenAI to deliver a fresh approach and unlock alternative sources of income points to a promising future for its growth.