At the dawn of 2023, the entertainment industry was on the cusp of major strikes, with actors, writers, and musicians expressing their primary concern: fair compensation for streaming content. However, as 2024 approaches, the narrative has shifted dramatically, with artificial intelligence (AI) emerging as the industry’s most pressing threat. The initial tremors of AI’s impact were felt when generative AI produced authentic-sounding voice recordings for songs. The industry was then shaken by OpenAI’s Sora, an AI that creates hyperrealistic videos from text prompts. These advancements have understandably caused trepidation within the entertainment sector, leading to a self-protective urge to resist the coming wave of AI. However, in portraying AI as an existential threat and vowing to fend off its role in the industry, Hollywood is only hindering its own progress. To safeguard jobs, ensure fair compensation for workers, protect intellectual property rights, and thrive alongside the coming waves of generative AI, the media and entertainment industries must engage with regulators. Ironically, regulators are not seeking to engage with doom-mongers but rather with those who have tangible, constructive, and productive ideas on how AI can be implemented responsibly. To incorporate these safeguards into legislation, creatives need to actively participate in discussions with regulatory bodies. They can only gain a foothold in these discussions by presenting a blueprint for the responsible, productive, and positive use of AI in media and entertainment. If they remain determined to fight AI tooth and nail, they will be excluded from the conversation, leaving AI regulations to be determined by those in the room, namely Big Tech corporations. Ceding territory to Big Tech would be a worst-case scenario for the entertainment industry, leading to job losses, IP exploitation, and minimal compensation. Unfortunately, the industry seems to be on this path. However, it is not too late to change course. Media and entertainment are two of the most dynamic, creative, and forward-thinking sectors in the economy, brimming with innovative ideas on how to integrate AI, which in turn will foster new forms of creativity and attract investment. The U.S. and U.K. have positioned themselves as light-touch regulatory environments for AI innovation and commerce, seeking to attract investment and capital by offering a safe haven from the EU’s stricter framework. While the entertainment industry cannot alter this reality, it can harness its ingenuity to shape the form these changes take and establish safeguards. The industry needs to engage regulators with a vision for a thriving creative sector built on the twin pillars of authentic human creativity and AI-powered dynamism. The recent SAG-AFTRA deal with major record labels, which mandates consent and compensation for any song that uses a digital replica of an artist’s voice, provides a potential starting point. This agreement, while a negotiation between workers and corporations, not legislators, offers a valuable foundation for building guardrails. Clear guidelines provide certainty, which is highly valued by investors. By developing a roadmap for AI’s role in the industry, Hollywood can offer government regulators this same assurance. By doing so, the industry will be in a much stronger position to incorporate protections for workers, IP, compensation, and ultimately a creative sector that works alongside, not against, artificial intelligence. The risks are too great to leave this matter solely to Big Tech. The entertainment industry must make its voice heard in the conversation around AI safety. By attempting to keep films, music, and writing free from AI, creatives are leaving themselves vulnerable to the whims of corporations whose plans may not include comprehensive protections for the entertainment sector. These corporations will have the attention of U.S. and U.K. regulators. Nevertheless, the SAG-AFTRA deal can serve as a springboard to demonstrate to government regulators a blueprint for the productive deployment of AI. This would grant Hollywood a stronger voice in future policy discussions. Tim Levy, founder and CEO of Twyn, an AI-enabled educational and entertainment content platform, and former founder and CEO of Future Capital Partners, encourages the entertainment industry to embrace the transformative potential of AI. He believes that by working with regulators to develop a responsible framework for AI’s integration, the industry can safeguard jobs, protect IP rights, and foster a creative sector that thrives alongside AI, rather than being hindered by it.
AI’s Rise: Hollywood Faces a Reckoning
