AI’s Growing Influence in Entertainment
The entertainment industry is navigating a period of rapid transformation fueled by advancements in artificial intelligence. From copyright disputes to novel content creation methods and emerging film festivals, AI’s impact is being felt across the board.
Tech Giants and the Copyright Debate
Major tech companies are advocating for broad copyright exemptions when training AI models on copyrighted content, sparking significant debate. Open AI, Meta, and Google are among the firms that contend that using copyrighted materials for AI training constitutes fair use. They cite China’s rapid advances in AI like the open-source DeepSeek model, as a factor in their position. “If the PRC’s developers have unfettered access to data and American companies are left without fair use access, the race for AI is effectively over,” OpenAI wrote in its submission to the White House.
Critics, including Hollywood unions and numerous creators, strongly disagree. They argue that allowing AI firms to profit from unlicensed work would unfairly harm original content creators. These debates reflect the broad implications of AI on the entertainment industry, with legal and ethical considerations needing greater clarity.
Content Creation Advances with AI
AI is also enabling new content creation tools. Roblox, for example, has revealed a new Mesh Generator API, utilizing the CUBE 3D model to generate 3D objects from text prompts. This is part of Roblox’s strategy to broaden its content creation capabilities and enter the $180 billion gaming market. Other AI models for speech-to-text, text-to-speech, and real-time translation are also in development, potentially changing content creation workflows.
AI’s Role in Filmmaking
Filmmakers are also experimenting with AI. Directors Joe and Anthony Russo recently discussed AI’s role in their new movie. Joe Russo noted that while AI is not yet suitable for essential tasks, it is beneficial for creative applications. The Russo brothers are also developing AI tools within their studio, Agbo, to further empower artists.
However, not everyone in Hollywood is embracing AI. Tony Gilroy, the creator of the acclaimed series Andor, chose not to release the show’s writing due to concerns about AI misuse. This stance highlights the tension between adopting AI benefits and protecting original intellectual property. James Cameron has however joined the board of Stability AI.
Stability AI has also introduced Stable Virtual Camera, an AI model that transforms 2D images into immersive 3D video scenes. This tool can simulate camera movements without 3D modeling, which could revolutionize film, advertising, and gaming. These developments reflect the AI industry’s push into generative 3D content.
Acquisitions and Startups in the AI Video Space
Elon Musk’s xAI has acquired Hotshot, an AI-powered video generation startup. Hotshot’s models, like Hotshot-XL, transform text prompts into video content. This acquisition demonstrates xAI’s strategy to boost its existing AI capabilities and compete with major industry players. Existing Hotshot users must download their content by March 30.
New Films and Festivals Showcase AI’s Potential
The burgeoning AI industry is also spurring innovative events. The inaugural Austin AI Film Festival (AAIFF), took place recently in Austin, Texas. It awarded top honors to One Last Wish, directed by Edmond Yang, which was recognized for its seamless integration of AI in narrative cinema.
Singapore-based Vidu is teaming with Los Angeles animation studio Aura Productions to create a sci-fi anime series utilizing AI tools, debuting in 2025. The series feature’s Vidu’s new “Multiple-Entity Consistency” function, designed to maintain visual coherence.
FBRC.ai has released its first quarterly AI Industry Report, exploring the AI studio landscape. The report includes insights into studios and their impact of their operations on production pipelines and creative roles. It was co-founded by Rachel Joy Victor and Todd Terrazas who help early-stage AI startups find product-market fit while guiding corporations through AI adoption as strategic advisors. Nem Perez is following up its T2 fan film with an adaptation of ‘Alice in Wonderland.’ Perez’s creative team includes several AI filmmakers.
Industry Insights
This article is based on excerpts from a podcast co-hosted by former Paramount futurist and co-founder of Red Camera, and Rony Abovitz, founder of Magic Leap, Mako Robotics, and Synthbee AI. This week their guest was Bob Cooney, a thought leader in immersive technologies and location-based entertainment.
