Hollywood Labor 2026: SAG-AFTRA and WGA AI Negotiations

Hollywood vs. AI: SAG-AFTRA and WGA Launch High-Stakes 2026 Contract Talks

Actors are demanding a 'Tilly tax' on digital clones while writers seek stronger protections as negotiations with the AMPTP officially heat up.

Marcus J. Delany

Mar 18, 2026, 2:42 AM PT · 2 min read

The WGA and SAG-AFTRA are negotiating new protections against AI with the AMPTP in March 2026.

THE RUNDOWN

WGA began formal contract negotiations with the AMPTP on March 17, 2026.
SAG-AFTRA extended its ongoing negotiations after starting talks in February 2026.
The proposed 'Tilly tax' would secure residuals for actors whose likenesses are used by AI.
Both unions are prioritizing strict guardrails against artificial intelligence in the creative process.
The AMPTP is negotiating separately with both guilds to reach new multi-year agreements.

Hollywood is back at the bargaining table as the industry’s most powerful unions take a stand against the rise of artificial intelligence. On March 17, 2026, the Writers Guild of America (WGA) officially commenced formal contract negotiations with the Alliance of Motion Picture and Television Producers (AMPTP). These talks follow the SAG-AFTRA negotiations that began in February 2026 and were recently extended as both sides struggle to find common ground on digital rights.

Artificial intelligence remains the primary battleground for both guilds. SAG-AFTRA is currently proposing a "Tilly tax," a residual structure named after actress Jennifer Tilly. This tax would require production companies to pay into the union's health and pension funds whenever AI-generated clones or digital likenesses are used in place of human performers. The union aims to ensure that the use of synthetic performers does not deplete the resources meant for living actors.

Meanwhile, the WGA is pushing for even stricter guardrails than those established in their previous 2023 contract. Writers are seeking to expand protections against AI being used to write or rewrite literary material, ensuring that human creators remain the bedrock of the industry. As the AMPTP represents major studios and streamers, the outcome of these separate but parallel talks will define the labor landscape for the next three years.