Artificial Intelligence in Film: Movie Studios Proceed Cautiously

In the realm of artificial intelligence (AI), movie studios have taken a more cautious approach compared to other creative industries such as publishing and music. OpenAI, a frontrunner in AI development, has sought partnerships with major studios like Walt Disney Co., Universal Pictures, and Warner Bros. Discovery Inc. to explore the potential of Sora, an AI tool capable of generating realistic video clips from text prompts.

Despite these discussions, no deals have materialized due to concerns raised by studios. They are hesitant to collaborate with AI companies due to data privacy and potential conflicts with labor unions. Concerns over the unauthorized use of content also emerged during the labor strikes that crippled Hollywood in 2023.

OpenAI executives have met with film studios and industry leaders to demonstrate Sora's capabilities. However, the company acknowledges that rushing into commercial partnerships may be premature. Nonetheless, it values feedback from the industry.

While some filmmakers have embraced AI as a creative tool, studios approach the technology with a more pragmatic perspective. They recognize its potential to reduce costs in animation and visual effects, but are cautious about surrendering valuable content to external companies. Unlike record labels, which profited from equity in streaming services, studios have not invested in platforms like YouTube or Netflix.

Lionsgate stands as an exception, having partnered with AI startup Runway to develop a bespoke AI model based on its content catalog. This arrangement allows Lionsgate to generate video for future projects while preventing unauthorized use of its characters and assets.

Other studios have considered similar deals with OpenAI, exploring the possibility of licensing movie and TV show catalogs to avoid copyright disputes. However, these negotiations remain in early stages and no concrete financial frameworks have been established.

The studios and OpenAI must address key issues before forging agreements. These include the sharing of revenue with filmmakers and actors, as well as the potential impact of AI on labor practices within the industry.