The silver screen is going digital in a way we have never seen before. Lionsgate recently announced a massive partnership with the AI company Runway, marking a first-of-its-kind deal where a major studio teams up with an AI firm to train a model based on its own film library. Lionsgate Vice Chairman Michael Burns stated the technology will help streamline production and create "capital-efficient" content for massive franchises like John Wick and The Hunger Games.

While studios look at the bottom line, the human talent is fighting back to protect their digital identities. In September 2024, California Governor Gavin Newsom signed two landmark bills, AB 1836 and AB 2602, which require studios to get explicit permission before using AI to create digital replicas of performers. This legislative win follows the 118-day SAG-AFTRA strike led by President Fran Drescher, which focused heavily on securing protections against unauthorized "digital doubles."

The financial impact of AI is already being felt in physical studio spaces. Filmmaker Tyler Perry made headlines when he halted a planned $800 million expansion of his Tyler Perry Studios in Atlanta. Perry told The Hollywood Reporter that he hit the brakes after seeing a demonstration of OpenAIā€™s Sora, a text-to-video tool that he believes could soon eliminate the need for expensive location shoots and massive physical set builds.