Previously, studio executives relied on their gut feeling. Today, AI systems analyze vast amounts of data to predict a screenplay’s potential box office success. They can identify plot patterns, analyze target audiences, and even suggest ways to “optimize” the story to better appeal to a global audience.

Generative AI tools are already being used for brainstorming loglines, creating concept art for storyboards, and designing characters, thus accelerating the creative process.

AI is most visible in the field of visual effects (VFX). So-called “de-aging”—the digital rejuvenation of actors—is a prime example. Instead of painstaking manual frame-by-frame editing, tools like ILM Facefinder use machine learning to convincingly de-age actors such as Harrison Ford in Indiana Jones or Robert De Niro in The Irishman.

Generative AI can now also create entire digital environments, props, or background characters, which could drastically reduce the costs of elaborate sets or crowd scenes.

Post-production is a painstaking process. AI tools already help editors sift through hours of raw footage by automatically marking the best takes or synchronizing dialogue. AI can also improve audio quality by removing background noise or even automatically compose music that dynamically adapts to the mood of a scene.

How does a film become a hit? AI systems analyze social media trends and audience data to create trailers specifically tailored to different target groups. They determine the optimal release date for a film and predict revenue with astonishing accuracy.

The rapid integration of AI was a key trigger for the historic Writers’ Association (WGA) and Actors’ Association (SAG-AFTRA) strikes in 2023. The concerns were profound and existential:

For Writers: The WGA feared that studios could use AI to generate initial drafts of scripts and hire human writers only for revisions (at lower wages). The union successfully fought for regulations stipulating that AI is not considered an “author” and that AI-generated material cannot be used as “source material” to undermine an author’s credits.

For Actors: SAG-AFTRA faced the threat of “digital avatars.” The concern was that studios could scan background actors (extras) once and then reuse this digital image indefinitely in future productions without further compensation or consent. Here, too, safeguards were won that require explicit consent and fair compensation for the use of digital replicas.

The strikes made it clear: the goal is not to ban the technology, but to establish guidelines to ensure that it serves as a tool and does not replace or dispossess human creators.

The AI ​​revolution in Hollywood has only just begun. We are on the cusp of even more profound changes:

Democratization of filmmaking: Powerful AI tools that once cost millions are becoming more accessible. Indie filmmakers could soon be able to achieve blockbuster-level visual effects with a fraction of the budget.

Hyper-personalization: Imagine watching a film where AI adjusts the plot or even the ending in real time based on your previous preferences.

New creative roles: While some jobs (e.g., in basic VFX work) are threatened, new roles are emerging—such as the “AI prompter” or the “VFX data supervisor,” who trains and manages the algorithms.

Hollywood is at a crossroads. Artificial intelligence is undoubtedly the most powerful tool the industry has seen since the advent of digital film. It promises unprecedented efficiency and new creative horizons.

At the same time, it forces the “dream factory” to engage in a fundamental debate about what creativity actually means and what value the human spark holds in an increasingly automated world. The next act in Hollywood’s story will be written not only by directors and actors, but also by programmers and the contracts that govern the use of their creations.