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Gen AI Report Raises Red Flags on Job Losses in Entertainment Industry

By Hallie Gill
Feb 7, 2024
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In a recent report, consulting firm CVL Economics has predicted that generative artificial intelligence (Gen AI) will lead to more job losses in the film and animation industry compared to other sectors. The study, conducted between November 17 and December 22, 2023, surveyed 300 leaders, including C-suite executives and managers, from six entertainment industries. According to the report, 75% of respondents indicated that Gen AI tools, software, and models would contribute to the elimination, reduction, or consolidation of jobs in their business units.

Gen AI, which can autonomously create content such as images, text, and music without explicit programming, utilizes machine learning to understand and replicate patterns in existing data. The study suggests that 55% of industry leaders anticipate sound designers will be the most impacted over the next three years. Additionally, over 40% believe that professionals such as music editors, audio technicians, and sound engineers are vulnerable, while approximately 33% expect songwriters, composers, and studio engineers to be affected.

The report highlights a strike announced in July 2023 by the Writers Guild of America (WGA) and the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) due to concerns about the impact of artificial intelligence on job roles and safety. AI advancements could potentially replace roles in the industry, as many companies use writers' content to train Gen AI programs and create digital replicas and characters based on actors' likenesses.

Despite recent positive contract negotiations with the Motion Picture and Television Producers Alliance, members of WGA and SAG-AFTRA remain apprehensive about the uncertainty surrounding Gen AI's impact on the motion picture, television, and other entertainment industries. The report notes that 47% of business leaders believe Gen AI will effectively generate 3D assets and realistic sound designs for film, television, and video games within the next three years. Additionally, 44% anticipate Gen AI being capable of creating realistic foreign language dubbing for film or TV dialogue, and 39% expect Gen AI to generate music mixes and masters by 2026.

However, with companies like Riot Games, Unity Software, Amazon MGM Studios, Pixar, and Universal Music Group announcing layoffs in the early weeks of 2024, CVL Economics predicts further job cuts in the industry in the coming months.

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