AI Won't Kill Hollywood - It'll Make It Stronger

I’m a PhD candidate in Data Science who has worked with and studied AI since the early days of Deep Learning. While this perspective might be controversial, I want to offer a hopeful outlook on AI in the entertainment industry.

Recently on Threads, there was a discussion about an Adidas campaign made entirely with AI. First, I want to clarify that this was a “spec ad” created independently by Blair Vermette and not commissioned by Adidas.

However, this AI-generated campaign sparked debate among casting directors and actors. My mind started spinning about the subject.

In my opinion, AI is starting The Great Hollywood Reset—but it’s not a bad thing.

Let’s break down a comparison, imagining that we have to shoot the same ad with Adidas. These costs are obviously approximate:

Traditional Production Costs

If we had to run the same campaign using the traditional path we have to hire the following professional figures:

Casting Director ($800-1,500/day)
Director of Photography ($1,500-3,000/day)
Multiple Actors ($2,000-5,000/day each)
Production Crew
Post-production Team
Studio/Location Rental. (The AI ad was made in Japan, but for simplicity let’s not include the location and the cost of traveling + permits.)

Time: 2-3 weeks (pre-production to final delivery)
Estimated Cost: $100,000

AI-Powered Production

Let’s see how I think was the cost of the overall AI-Powered Production based on the article:

Software Engineer ($500-1,000/day)
Creative Director ($800-1,500/day)
AI Service Subscription/Usage ($300)

Time: 3-5 days
Estimated Cost: $5,000-10,000

Now, the technology is still premature and Adidas could benefit more in adding real actors/athletes/models to their ad, as their presence can make the audience feel more emotionally connected.

However, imagine if you are a small brand that is testing a new product on a different regional market. The AI ad is no brainer. This disruption doesn’t mean the end of creative professionals.

But before making a step forward let’s make one backward to put some context for the people who are not familiar with the recent Hollywood economical landscape. I’ll make it brief.

The Hollywood Economic Crisis

The Streaming Problem

Netflix is spending $17B on content - an unsustainable amount
Warner Bros. Discovery lost nearly $10B in one quarter
Current streaming business models are showing serious cracks

Impact of 2023 Strikes

Cost California’s economy $1.4B
Affected 45,000 jobs directly
Long-term effects still unfolding

Box Office Troubles

Theatre attendance well below pre-pandemic levels
2023: $9B domestic box office
2019: $11.4B domestic box office
Theatrical window shrunk: 90 days → 45 days
Studios scrambling to adapt revenue models

Changing Market

Streaming services becoming too fragmented
Social media competing for attention
Young viewers prefer short-form content
Traditional TV/film facing generational challenge

The key issue: The industry’s old money-making models are breaking down, while new ones aren’t yet profitable enough to replace them.

Now, let’s make a step forward. What I envision:

Future Outlook

AI Will Replace Actors in Low Ticket Commercial Content

AI is transforming low-ticket commercial content production. Software like RunwayML and Midjourney can enable the creation of high-quality commercials at a fraction of traditional costs. These tools can be particularly effective for projects requiring quick turnaround times and multiple variations for testing. Regional adaptations of advertisements, previously requiring separate shoots, can now be generated efficiently through AI modifications. We obviously need to see the market’s reaction. Maybe the Japan market will reach differently than the USA market. But if the public perception is good, there are all the right incentives to continue with this path. But again, high ticket commercials will still need real actors and talents.

AI-Generated Content Will Coexist with Traditional Media

The entertainment industry is entering a phase where AI-generated and traditional content will operate in parallel markets. While AI can potentially excel at producing standardized commercial content, premium productions will continue to require human talent and creativity. This technology is better understood as an enhancement tool rather than a replacement for creative professionals. We’re seeing the emergence of new entertainment formats that combine AI capabilities with human storytelling.

What’s being disrupted

The immediate impact will be visible in several sectors: budget-conscious productions, standard advertising content, stock media and basic voice-over work. These areas are experiencing rapid transformation as AI tools become more sophisticated and accessible. Companies that traditionally operated in these spaces are being forced to adapt or risk obsolescence. Success in this evolving landscape requires treating AI as a complementary tool rather than a threat. The roles most secure are those requiring creative judgement, emotional intelligence, strategic thinking, human interaction, complex-decision making. It’s important to create clear frameworks for AI-generated content rights that it’s not just “The use of AI is forbidden in State X”. Because that means that productions could shift to AI-friendly states and that creates a huge market disadvantage for State X. It doesn’t require a genius to understand this. Just saying.

My optimistic vision

AI isn’t here to replace us - it’s here to reset our industry’s economics. Think about it: More Projects, More Jobs. With production costs dropping by 30-50% and pre-production time being cut in half, studios can take more creative risks. Independent producers will be able to compete more effectively, and regional markets will become viable. The result? More content gets made and more jobs get created. We will still need actors, production crews, and voiceover artists. We will always need humans.

But AI can open new possible career paths:

AI Character Directors ($150K+): Specializes in directing AI-generated characters, voices, and performances.
Virtual Production Supervisors ($200K+): Technical experts who manage real-time AI rendering and processing during live productions
AI-Human Performance Coaches ($120K+): Help actors adapt their performances for AI enhancement and interaction with AI-generated elements
Digital Asset Designers ($140K+): Creates and optimizes AI-generated environments, props, and characters
AI Integration Supervisors ($180K+): Implements AI solutions across production pipeline.
AI ethics officer ($130K+): Professionals who ensure AI-generated content adheres to ethical guidelines, copyright laws, and industry standards.

Most Impacted Roles

Background actors will be replaced with AI crowds and digital extras. Basic storyboard artists (many directors are storyboarding with AI tools). Stock footage creators. Basic voice-over work. Routine color correction.

The Path Forward

Remember when digital cameras were going to “kill” cinematography?

Industry veterans predicted the death of cinematography. Instead, digital transformation revolutionized filmmaking in ways no one expected.

Today, we’re witnessing a vibrant ecosystem where more cinematographers are working than ever before. Creative techniques have multiplied exponentially. A passionate filmmaker can now produce compelling documentaries or indie winning shorts with just $3,000 worth of equipment – a feat unimaginable in the film era.

AI’s impact will likely follow this same transformative pattern, but on a grander scale. The economics are compelling and straightforward: as production costs decrease, profit margins expand. This leads to more projects receiving the green light, creating a cascade of new opportunities.

This isn’t just about cost reduction – it’s about democratizing creativity. Just as digital cameras didn’t kill cinematography but rather revolutionized it, AI won’t replace human creativity. Instead, it’s providing tools that expand what’s possible, opening doors for a new generation of storytellers.

Your Choice:

You can resist this change and watch others seize the opportunity.

Or…

You can be part of the most exciting transformation in entertainment history.

Because here’s the truth:

The old model is broken
The industry needs this reset
Early adopters will thrive
New leaders will emerge

The Next Steps:

Embrace AI as a tool, not a threat
Identify your role in the new ecosystem
Start learning the new tools
Position yourself for emerging opportunities
Be part of shaping this change

Every major technological shift in Hollywood’s history created more opportunities than it eliminated.

This time won’t be different.