Consultancy firm CVL Economics has released a report suggesting that generative artificial intelligence (Gen AI) is poised to cause significant job losses within the film and animation sector compared to other industries.
Based on a survey of 300 leaders across six entertainment sectors, including c-suite executives, senior executives, and mid-level managers, the report reveals that 75% of respondents indicated Gen AI tools, software, and models have led to the elimination, reduction, or consolidation of jobs within their respective divisions.
Gen AI, which creates diverse content such as images, text, and music without explicit programming, utilizes machine learning to understand and replicate patterns from existing data.
According to the report, 55% of entertainment leaders foresee sound designers as being the most affected by job losses in the next three years. Additionally, over 40% express concerns for roles such as music editors, audio technicians, sound engineers, songwriters, composers, and studio engineers.
The emergence of Gen AI technology has prompted labor disputes, notably seen in the Writers Guild of America (WGA) and the Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) strike in July 2023. The unions raised concerns over potential job role replacements by Gen AI programs, which were trained using content created by writers and actors.
While recent contract negotiations between WGA, SAG-AFTRA, and the Alliance of Motion Picture and Television Producers have shown progress, uncertainties remain regarding the impact of Gen AI on the entertainment industry.
CVL Economics' report indicates that nearly half of business leaders expect Gen AI to generate 3D assets and realistic sound design for film, television, and video games within the next three years. Moreover, a significant percentage believe Gen AI could produce realistic foreign language dubbing for film or television dialogue, as well as music mixes and masters by 2026.
Despite this optimistic outlook, the entertainment industry has already witnessed layoffs at companies like Riot Games, Unity Software, Amazon MGM Studios, Pixar, and Universal Music Group in early 2024, signaling further job cuts in the foreseeable future.
