Generative AI is set to revolutionize Hollywood

At CES 2025, one message rang loud and clear: Generative AI is set to revolutionize Hollywood. Over the next five years, artificial intelligence will reshape the film industry in every aspect, from scriptwriting and special effects to casting, distribution, and marketing.

As studios and streaming platforms navigate rising costs, fierce global competition, and evolving audience expectations, AI-driven solutions promise to cut expenses while expanding creative possibilities.

Before diving into AI’s impact, it’s essential to understand how films and commercials are currently made. Traditional filmmaking is a resource-intensive process involving multiple stages: development, pre-production, production, post-production, and distribution.

Screenwriters spend months or even years crafting scripts, often going through multiple rewrites before studios greenlight a project.

Once approved, directors, producers, and cinematographers assemble a cast and crew, secure locations, and begin filming—a process that can take anywhere from weeks to several months, depending on the project’s complexity.

Some high-budget films, such as major studio blockbusters, can require extensive planning and years of pre-production work, particularly when visual effects and global location shoots are involved.

Post-production, one of the most expensive phases, includes editing, sound design, visual effects (VFX), and color grading. Blockbusters rely heavily on VFX, which can take years to complete using vast teams of digital artists.

For example, films like Avengers: Endgame and Avatar: The Way of Water involved thousands of artists working for years on digital environments and effects to bring their worlds to life. The cost of these effects can sometimes exceed $100 million for a single film, creating financial challenges for studios.

Marketing and distribution are equally demanding. Theatrical releases involve negotiating with distributors and exhibitors, while digital releases require complex licensing agreements with streaming platforms.

The cost of marketing a major film can reach $200 million, nearly matching or even surpassing the production budget. AI has the potential to address many inefficiencies in these areas, making production and distribution more streamlined and cost-effective.

Additionally, commercial productions for advertising face similar challenges. High-profile campaigns require significant investment in actors, locations, and post-production.

AI-generated actors and environments can reduce these costs and accelerate production timelines, making it easier for brands to create global campaigns without the limitations of traditional film shoots.

AI-assisted scriptwriting is already making waves. Companies like OpenAI and DeepMind have developed advanced large language models capable of generating complex narratives with human-like nuance.

At CES 2025, screenwriter and AI researcher Ross Goodwin demonstrated how AI can analyze decades of film scripts to predict successful storytelling elements, helping studios refine narratives before filming begins.

Startups like ScripAI and RunwayML are also gaining traction, allowing filmmakers to input rough story ideas and receive AI-generated drafts tailored to specific genres and audience demographics. By reducing the time and cost associated with script development, these tools enable studios to produce more diverse content faster.

Additionally, AI can suggest alternative plot structures, help eliminate inconsistencies, and analyze audience reception trends to refine the storytelling process.

One of the most exciting aspects of AI-driven scriptwriting is its ability to personalize storytelling. AI models can analyze viewer preferences and market trends, helping studios craft narratives that resonate with specific demographics.

For instance, AI can identify cultural nuances and predict emotional engagement, allowing studios to fine-tune dialogue and character arcs for maximum audience impact.

Personalized storytelling could mean that audiences get films tailored to their regional sensibilities or that streaming platforms use AI-generated scripts to produce content specifically for niche markets.

Additionally, AI-driven tools are enabling scriptwriters to collaborate more efficiently. Writers can input incomplete scripts or general outlines, and AI will generate multiple potential story arcs, dialogue options, and scene transitions.

This not only accelerates the writing process but also allows writers to experiment with innovative storytelling approaches that might have otherwise been overlooked.

As AI becomes more refined, the traditional scriptwriting process will be augmented with machine learning insights, leading to more engaging and commercially viable stories.

Furthermore, AI can analyze past box office performance and audience reviews to recommend script changes that might improve a film’s marketability. AI-powered analytics tools are already being used by streaming platforms like Netflix and Amazon Prime to determine which types of content resonate most with viewers.

Generative AI is also challenging Hollywood’s reliance on human talent. Companies such as DeepVox showcased AI-generated actors at CES, highlighting the ability to create hyper-realistic digital performers who can act, emote, and even improvise.

These AI actors could reduce talent costs, allowing studios to sidestep expensive contracts, scheduling conflicts, and logistical challenges. While SAG-AFTRA has pushed for strict regulations on AI’s role in acting, some filmmakers see AI-generated performances as a way to preserve legendary actors’ likenesses or rejuvenate retired stars for new projects.

The rise of AI in filmmaking is not without controversy. Industry professionals have raised ethical concerns about job displacement, copyright infringement, and the authenticity of AI-generated performances.

The Writers Guild of America (WGA) and SAG-AFTRA have called for stricter guidelines to ensure AI supplements human creativity rather than replacing it entirely.

Government regulation may also shape AI’s role in Hollywood. In 2024, the U.S. Copyright Office ruled that AI-generated works without human intervention are not copyrightable, posing challenges for studios relying on fully AI-generated scripts or characters.

On Jan. 29, 2025 the U.S. Copyright Office updated their rules and concluded that the outputs of generative AI can be protected by copyright only where a human author has determined sufficient expressive elements. This can include situations where a human-authored work is perceptible in an AI output, or a human makes creative arrangements or modifications of the output, but not the mere provision of prompts.

The Office confirms that the use of AI to assist in the process of creation or the inclusion of AI-generated material in a larger human-generated work does not bar copyrightability. The regulations are clearly in flux and wrought with long-term uncertainty.

Hollywood now faces an AI arms race, with major studios investing in proprietary AI tools to maintain a competitive edge. Disney and Warner Bros. have partnered with AI labs to develop in-house generative AI models, ensuring they remain leaders in the evolving landscape.

"Where the Robots Grow" was released in October, 2024 from AiMation Studios out of the UK. The film is notable for its claim of being the first full-length feature film created using generative AI, motion capture, and other CGI technologies.

Internationally, China, South Korea, and India are rapidly integrating AI into their film industries. China’s Tencent and Baidu investing heavily in AI-generated content, potentially outpacing Hollywood’s adoption of the technology.

At CES 2025, representatives from Tencent Studios showcased their AI-generated animated films, which can be produced in weeks rather than years. Meanwhile, Bollywood is experimenting with AI-driven dubbing and digital actors to expand its global reach.

AI adoption in filmmaking is also being influenced by geopolitical factors. U.S.-China tensions over technology regulations could impact Hollywood’s ability to license or use Chinese-developed AI tools.

Conversely, European nations are emphasizing ethical AI usage, which could lead to stricter regulations in Hollywood’s AI integration compared to more lenient markets.

Hollywood must decide whether to lead in AI-driven filmmaking or risk falling behind international competitors. The industry’s challenge will be striking a balance between technological innovation and artistic integrity, ensuring that AI enhances—rather than replaces—the human touch in storytelling.

Note: Materials provided above by The Brighter Side of News. Content may be edited for style and length.

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