A once-wary Hollywood slowly warms to AI

By the Editorial Team · Sunday, July 26, 2026

Hollywood is increasingly incorporating artificial intelligence into film production, highlighted by Netflix’s $587 million acquisition of AI start-up InterPositive and other significant investments by major industry players. This shift reflects growing confidence in AI’s ability to enhance creative workflows, though concerns remain about its impact on jobs and the need to preserve human artistry in filmmaking.

Hollywood’s stance on artificial intelligence (AI) is evolving as the film industry increasingly integrates the technology into various stages of production, even as concerns about its impact on creative roles persist. Once wary of AI due to fears over intellectual property misuse and potential job displacement, particularly among actors, the sector is now exploring partnerships and applications that leverage AI to enhance, rather than replace, human creativity.

In recent years, skepticism toward AI was heightened by the 2023 Hollywood strikes, during which industry professionals voiced apprehensions about the use of AI-generated content. Early AI visuals were often criticized for their technical shortcomings, reinforcing doubts about the technology’s viability. However, attitudes began shifting notably this year, marked by significant investments and acquisitions that signal greater confidence in AI’s potential.

Netflix’s acquisition of AI start-up InterPositive for $587 million stands out as a landmark move. Founded in 2022 by Ben Affleck alongside other industry figures, InterPositive develops AI tools to support filmmaking and television production workflows. In June, Lionsgate invested in AI video company Runway to collaborate on creative projects, while Google committed funding to the independent studio A24, further underscoring the growing institutional interest in AI-driven media.

Advancements in AI-generated video have contributed to this thawing of resistance. Runway’s chief creative officer, Jamie Umpherson, noted that improved technology now enables filmmakers to craft compelling stories with AI-generated visuals that audiences may scarcely notice. Netflix co-CEO Ted Sarandos similarly highlighted AI’s role in boosting production quality and efficiency, revealing that generative AI has been applied in post-production on approximately 300 Netflix titles, mainly to handle complex visual effects and colour grading.

Despite these developments, many industry professionals stress the importance of maintaining human creativity at the core of filmmaking. Independent director and producer Jon Erwin described a “hybrid” filmmaking approach that combines traditional acting performances with AI-generated digital environments. His company, Wonder Project, in collaboration with AI firm Luma, uses this method to create realistic settings without relying on green screens or motion-capture suits, allowing rapid scene reviews and adjustments. The first feature to utilize this approach, Young Washington, reportedly earned over $40 million worldwide.

Nonetheless, unease remains regarding AI’s long-term implications for employment within the industry. Actor Matt Damon recently expressed concerns that the drive for AI-driven efficiency could challenge the financial viability of large-scale productions, such as Christopher Nolan’s The Odyssey. Although major studios like Paramount, Universal, Sony, Walt Disney, and Warner Bros have yet to publicly embrace AI partnerships fully, industry analysts suggest that broader integration is unavoidable.

Tanya Porquez, CEO of the Generated Group, summarized the trend by stating that studios will eventually adopt AI technologies because “it’s just the wave,” signaling an ongoing transformation in how films and television shows are created.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.