Can Artificial Intelligence Spell the End for Hollywood?
AI promises solutions to some challenges in the film industry. However, it also poses social dilemmas and heightened competition that might undercut American movie studios' stronghold.
Hollywood finds itself at a crossroads, grappling with soaring production costs and diminishing profits. This dilemma is driven by the proliferation of streaming platforms and a perceived decline in production quality—reflected in a surge of negative premiere reviews. To curb expenses and enhance the production process, studios are exploring diverse technologies, with AI positioned to potentially reshape the industry's landscape.
The idea that AI will have a significant effect on TV and film production in coming years has gone from fringe idea to consensus, very fast,© Doug Shapiro, Senior Consultant at Boston Consulting Group.
Sure, as of now, AI isn't autonomously churning out movies. Its capacities remain nascent, and there's a looming question about audience reception to such AI-generated content. Thus, the human touch in movie-making is still indispensable. However, automation might well streamline operations and potentially usher in a renaissance for the industry. This could spur fiercer competition, especially from budding independent entities, which might not bode well for the Hollywood bigwigs.
Based on Clayton Christensen’s theory of disruptive innovations, any novel product, despite its flaws, will find its audience as the competitive landscape shifts. Hence, even minor film companies employing artificial intelligence to create lower-quality films could experience incremental expansion. Eventually, they might even pose a challenge to the market dominance of industry giants.
What's Next for Hollywood?
Considering Hollywood's present scenario, artificial intelligence seems to be more of a threat than a boon for the major studios. Although they might maintain their prominent position, this would be largely attributed to their substantial financial resources and ownership of renowned film universes. The heads of these corporations are acutely aware of this dynamic. However, they are simultaneously wrestling with societal issues. Labor unions and industry guilds are staunchly opposed to the widespread adoption of AI, perceiving it as an impending threat.
Hollywood is hardly dead, but it risks retreating into a smaller version of itself,Doug Shapiro insightfully comments.
If these movie studios aspire to sustain their market supremacy, they must strategize effectively around the use of artificial intelligence. Historically, Hollywood has showcased its capacity to swiftly adapt, embracing and integrating fresh technologies. But, for now, such adaptability seems absent.
