AI & EthicsDecember 28, 2025

When AI Came for Hollywood - The Entertainment Industry's Existential Crisis

December 28, 2025
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AI & Ethics

In July 2023, 160,000 Hollywood workers walked off the job. For the first time in decades, actors and writers were on strike simultaneously.

The issue that united them: artificial intelligence.

What happened next reshaped not just entertainment, but how we think about AI and creative work.

The Breaking Point

The Writers' Fears

What screenwriters saw coming: - ChatGPT writing first drafts for executives to "polish" - AI-generated dialogue replacing room collaboration - "Created by AI, edited by human" becoming standard - Writing credits (and residuals) going to machines

The specific demands: - AI cannot write or rewrite literary material - AI-generated content cannot be considered "source material" (which affects credits) - Writers' work cannot be used to train AI without consent - Studios must disclose when AI is used in development

The Actors' Nightmare

What performers saw coming: - Digital doubles replacing background actors - AI-generated voices for dubbing and localization - Deceased actors "performing" indefinitely - Likeness used in perpetuity without compensation

The specific demands: - Consent required for digital replica creation - Compensation for each use of digital likeness - Living actors' likenesses protected from AI replication - Clear terms for posthumous use

What the Studios Wanted

The initial studio position: - Maximum flexibility in AI use - Ability to train models on existing content (they own the rights, after all) - Use of AI for "efficiency" without additional compensation - Vague language that preserved future options

The industry argument: - AI is just another tool, like CGI or auto-tune - Resistance to technology is futile and counterproductive - Markets should decide how AI is used - Unions are overreaching

The Settlement

After months of negotiations, both strikes ended with landmark agreements:

Writers Guild Agreement

AI provisions: - AI cannot be credited as a writer - AI-generated content doesn't qualify as source material - Writers can use AI if they choose (not mandatory) - Companies must disclose if material is AI-generated - Writers' work used to train AI requires negotiation

SAG-AFTRA Agreement

AI provisions: - Consent required for any digital replica - Minimum compensation for AI replica use - Clear terms for posthumous AI use - Background actors protected from bulk scanning - Regular re-negotiation as technology evolves

The Aftermath: Two Years Later

What Actually Changed

In production: - AI use in writing rooms remains controversial but present - Studios are cautious about visible AI use (public relations concern) - Some use AI for development, then hire writers to execute - Animation studios face fewer restrictions and use AI more aggressively

In technology: - AI video generation reached feature-film quality - Voice cloning became indistinguishable from original - Digital actors can now "perform" in real-time - The capabilities the unions feared are now real

The Loopholes

What the agreements didn't cover: - Non-union productions (increasing internationally) - Video games (separate union, different rules) - Social media content (no union at all) - International productions subject to different laws

The strategy: Some studios moved production overseas, used AI extensively, then brought content back for distribution.

The Broader Pattern

Creative Workers Across Industries

Similar anxieties: - Graphic designers facing Midjourney - Musicians facing Suno and Udio - Voice actors facing ElevenLabs - Translators facing GPT-based tools - Journalists facing automated reporting

The difference: Hollywood has strong unions. Most creative workers don't.

The Gig Economy Reality

For freelance creatives: - No collective bargaining power - Contracts increasingly include AI training rights - Clients expect faster, cheaper work - "AI-assisted" becoming expected skill

The emerging split: - Premium market: human-created as luxury/differentiator - Mass market: AI-generated with human oversight - Middle market: disappearing

What It Means for AI Development

The Training Data Question

The Hollywood precedent: - Content creators have some rights over training use - Compensation may be required for training data - Disclosure requirements are reasonable asks

The implications: - Getty, New York Times, and other data lawsuits have precedent - AI companies may need licensing deals with content owners - The "open internet" training era may be ending

The Replacement vs. Augmentation Question

What Hollywood decided: - AI can augment but not replace certain roles - Human involvement is required for certain credits - Some creative decisions must remain human

What this means: - The "AI will replace all jobs" narrative isn't inevitable - Social and legal choices shape technology's impact - Collective action can influence outcomes

Lessons Beyond Hollywood

For Workers

  • Collective action matters when technology shifts power
  • Early engagement beats reactive resistance
  • Specific demands are more effective than general opposition
  • Technology can be shaped by policy, not just markets

For Companies

  • Worker concerns about AI aren't just self-interest - they often identify real problems
  • Transparency about AI use builds more trust than secrecy
  • Short-term efficiency gains can create long-term reputation costs
  • Inclusive technology deployment tends to go more smoothly

For Society

  • AI's impact on work isn't purely technological - it's social and political
  • Different choices lead to different outcomes
  • The "inevitable" often isn't
  • Who benefits from AI is a choice, not a given

The Story Continues

Hollywood's AI reckoning isn't over. The 2023 agreements expire. Technology advances. New use cases emerge.

But the precedent is set: creative workers can shape how AI is used in their industries. Not stop it - but shape it.

That's a model worth understanding, whether you're in entertainment or anywhere else AI is transforming work.

Hassan Kamran

Hassan Kamran

Founder & CEO, Big0

Leading innovation in AI and technology solutions. Passionate about transforming businesses through cutting-edge technology.

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