How AI is quietly changing Hollywood
05 Jun 2025

Hollywood is witnessing a major shift with the rise of artificial intelligence (AI) in filmmaking.

The industry has seen the emergence of nearly 100 AI studios, including one called Asteria Film Co., founded by entrepreneur Bryn Mooser and actress Natasha Lyonne.

Asteria is part of a new wave of artist-run studios specifically designed for filmmakers, and it claims to be the first "ethical" studio as its model was trained only on licensed material.

AI's entry into Hollywood
Technology integration

The use of AI in Hollywood has been a mixed bag, with some seeing it as a threat to creativity and others viewing it as a potential lifeline.

The technology has given rise to tools that can create every aspect of a film, from the script to the soundtrack and even the actors.

However, many AI models trained on video data have used copyrighted material without permission or compensation, raising concerns over intellectual property rights.

Fears of job losses
Job security

The rise of AI has also led to fears of job losses in Hollywood.

Many artists have reported being asked to use AI as a reference or to touch up their finished work, with nearly half of the 800 respondents in an informal poll by concept artist Reid Southen saying they had been approached for such tasks.

This trend is particularly worrying for storyboard artists, who could be replaced by directors using AI tools to generate storyboards from scripts.

Contracts negotiated by actors and writers
Legal hurdles

The Hollywood writers and actors unions have negotiated contracts that include restrictions on AI use, such as banning studios from using AI-generated scripts or digitally cloning actors without their consent.

However, these contracts also allow some uses of generative video as long as a human is in charge and unions are given a chance to negotiate terms.

Despite the uncertainty, every major studio is pushing ahead with generative models developed by tech giants and artist-run studios.

AI could help make otherwise impossible movies
Future prospects

AI's potential to revolutionize film production is already being seen.

For instance, Lionsgate vice-chairman Michael Burns was impressed by Runway, an AI company that creates products specifically for filmmakers.

He said, "We can make movies and television shows we'd otherwise never make... because of AI."

This spring, Runway's valuation surpassed Lionsgate's market cap at $3 billion.

The company plans to train a custom model on Lionsgate's proprietary catalog using a selection from its archive of films.

The use of AI in Hollywood is still limited
Technological evolution

The use of AI in Hollywood is still limited, with only a few known applications in mainstream film and television. However, the technology is evolving rapidly.

For example, Lionsgate plans to use Runway to create a trailer for an unshot film, which could be presold at a festival based on its AI-generated scenes.

The studio also envisions using Runway to repackage and resell its existing films by adjusting tone, format, and rating.