SAG-AFTRA Strikes Video Game Companies Over AI Concerns

SAG-AFTRA, the union representing actors in Hollywood, has gone on strike against video game companies like Activision, Disney, EA, and WB Games. The union is demanding better protections against the use of AI in game development, arguing that current agreements do not offer enough safeguards for its members. The strike began at 12:01 a.m. on July 26th and will continue until a new contract is reached.

AI’s Rise: Hollywood Faces a Reckoning

As the entertainment industry grapples with the rapid advancement of artificial intelligence (AI), concerns are mounting over its potential impact on jobs, fair compensation, and intellectual property rights. The industry’s initial reaction has been to fight the inevitable, portraying AI as an existential threat. However, this approach is ultimately self-defeating and prevents Hollywood from engaging with regulators to shape the responsible rollout of AI in the sector. To protect workers and thrive alongside AI, the entertainment industry must shift its focus from fighting to engaging with regulators and developing a vision for a creative sector that embraces both human creativity and AI-powered dynamism. The recent SAG-AFTRA deal with record labels, which mandates consent and compensation for digital replicas of artists’ voices, provides a potential starting point for such a roadmap.

U.S. Bans Non-Competes, Promising Better Working Conditions in Hollywood

The Federal Trade Commission (FTC) has banned non-compete clauses, which restrict workers from joining competitors or starting businesses in the same field after leaving a company. This move is expected to improve working conditions in Hollywood and raise pay for workers by allowing them to freely consider offers from other companies. The ban faces legal challenges from businesses concerned about protecting confidential information and trade secrets. However, the FTC estimates that the average worker will see an annual pay increase of over $500. The ban could also increase competition among companies for top talent and reduce pay disparities between men and women.

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