AI Digest
September / October 2025
Author: Chai K Toh
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AI & Hollywood: The Rise of AI Studios, Richer Content, Popular Fictional Characters, Digital Ageing, Multi-Roles, Avatar & Multiverse
While Silicon Valley is busy talking about LLMs, new AI startups, who hire who, who pay who how much, etc., there is a totally different vibe taking shape in Southern California, specifically in Hollywood. The movie and media entertainment industries have awoken to the emergence of AI and are readily engaging it, but not with loud noise, publicity or parties as Silicon Valley did.
There is also an emerging trend, the move from traditional film making, video editing to animation and digital pictures. Then the arrival of AI. Steve Jobs was the one who moved into animated films and chaired Pixar Studios, resulting in the famous Toy Story, Nemo, and Coco. Now the AI wave is catching on, and a new Iconic person will emerge to lead the new AI Hollywood Studio. This person is not Elon, Bezos, Schmidt, Larry or Reid. This person has not revealed him/herself yet! Let’s start with a glimpse of the studios landscape.
Who is Hollywood....
The famous few include Warner Brothers Studio, Disney Studio, Sony Pictures, Pixar Studios, NBC Studios, Universal Studios, Marvel Studios, Paramount Pictures, etc. These big 5 control movie box offices around the world, providing globally popular movies such as James Bond, Mission Impossible, Superman, Spiderman, Marvel Heros, Matrix, etc.
Hollywood using AI - How is it being used?
In Hollywood, AI is viewed to be a new type pf CGI. AI can help film making in many ways, including:
• Video editing and post production
• Digital re-aging
• Scriptwriting and storytelling
• VFX and animation
• Voice cloning and synthesis
Movies that require a lot of “special effects”, such as:
1. Avatar
2. Toy Story 2
3. Marvel Heroes – Iron Man, Wonder Woman, Spiderman, Avengers, etc.
4. Star Wars
5. Star Trek
6. iRobot
7. Terminator
AI can generate special effects previously viewed not possible, given the flexibility in specifying features, colors, shapes, movements, etc. Remember the movie iRobot? New movies with themes on AI and possible apocalypse will appear within the next few years. Many movies and script directors are so creative that they are years ahead of us in visions. In fact, Umbrella Corporation for Alice in “Resident Evil” is ingeniously creative, with the central computer that interacted with Alice called the Red Queen. Red Queen was a highly advanced and self-aware AI created by Umbrella Corporation. This should linger in many of our minds for those who had watched this movie. One can only imagine future movies with AI theme to be even more exciting.
Fig 1. The Red Queen in Resident Evil: Final Chapter (Copyright Constantin Film)
In fact, GENAI will reduce content production cost, reduce labor, allow faster turn-around, and produce better content never before possible (such as create digital duplicate of a person, a person performing dual roles or more in a movie, digital ageing – creating both young and old image of the same person, etc). This enriches the movie creation and offerings. In “Gods of Egypt” movie, the God of Wisdom and Knowledge is Thoth, and multiple Thoths appeared in the movie concurrently, in Thoth’s library. That was fascinating.
Fig 2. Multiple Thoths in "Gods of Eygpt" movie (Copyright Summit Entertainment)
AI can also help in audience targeting, video distribution, trailers production and in marketing. These will be new areas of growth for Hollywood.
While FB (Meta) was previously very interested in multiverse and actively worked on AR and virtual reality, Hollywood did create the movie “Doctor Strange in the Multiverse of Madness” in 2022. While very entertaining and complex in nature, the movie depicted how time and space could co-exist concurrently in multiple dimensions, multiple worlds. Once again, Hollywood moves AHEAD of us in the real world.
Fig 3. Dr. Strange in "Multiverse of Madness" (Copyright Marvel Studios)
Social Media Video Threats
Hollywood was previously threatened by USER-GENERATED VIDEOs, such as those from YouTube, Instagram and Tik Tok. Now, it is GENAI knocking at their doors. AI can assist in many parts of the existing movie making workflow. Till today, user generated videos have not taken over the professional films/videos made by film studios.
Will Movie Directors still be in control?
Movie Directors will still retain control over the content and production, making recommendations and changes. AI and GenAI are viewed as tools and are not DECISION MAKERS.
Will we still need actors and actresses?
Yes. Actors and actresses will not be replaced overnight by AI or a humanoid. The part on emotions, human-to-human affections, interactions and reasoning are still lacking in AI. Also, audiences are already attached to certain characters or "stars" over time. For action-packed thrillers like James Bond, Spiderman and Mission Impossible, one can only expect things to get better with the inclusion of AI for various special effects, without losing realism.
What about Digital Fictional Characters?
It is possible that a digital character can evolve in popularity and in demand, such as Toy Story 5 main characters Woody, Jessie and Buzz Lightyear. With AI, more new digital fictional characters can be created, creating new animation movies.
Fig 4. Woody, Jessie and Buzz (Copyright Pixar Studios)
What are the popular GenAI Tools for Voice Cloning, T2V, Video Editing and Digital Re-Ageing ?
7Labs.io
Resemble AI
Synthesys
Murf
HeyGen
ReadSpeaker
Google Transframer
Dreamix
NeRF
Gen2
Kaiber
Modelscope
TopazLab
Industrial light & magic
The Shift in Engineering Talents
From managing lights, music, sound and video recording and editing to AI studios and content creation. The use of AI machine learning algorithms, GenAI tools, AI frameworks, ChatGPT and AI Agents can significantly enrich and impact the movie world. Engineers can open up to media, entertainment and studios work. In the Silicon Valley, it is mostly associated with NETFLIX, HULU and APPLE TV.
There shall be a transition of computer science talents and workers from Bay Area to the Southern California. Engineers working in multimedia and AI will both be needed by Hollywood. Engineers need not only focus on infrastructures, cloud, chips or agents. There are opportunities for other areas of work, especially in AI-based media. While NETFLIX and HULU provide media and content distribution, they do not really create movie content. Hollywood still has an upper hand on movie creation.
The arrival of AI will create new markets and opportunities for new video/film production in Hollywood.
VCs moving to Media and Studios, have you?
While news media and engineers are focused on OpenAI, NVIDIA, GOOGLE. META and MICROSOFT, some VCs have leaped ahead into investing on what is major and upcoming, and often that are not widely spoken about – that of AI Studios. In fact, investments in this area have skyrocketed.
While engineers focus on specific details, developing new models, algorithms, tools, chips, agents, etc., the industry landscape is changing and twisting, some of which will result in a drastic impact down the road, affecting markets, jobs, products and trends. New wealth will be created and those companies who did not catch up will be unable to compete and cease to exist or be left behind.
Concluding Remarks...
The foundation would like to call upon these people (VCs, entrepreneurs, and engineers) to pay attention. Firstly, VCs not lose sight of the huge market and profits from Hollywood studios and the transformation that is taking place for AI-based studios. Secondly, attention from entrepreneurs to start venturing into this new area, and therefore moving down to sunny Southern California. Thirdly, calling for all engineers (young and old) to not ignore or forget about the existence of Studios Valley (not Silicon Valley) and to join the wagon while it is hot, with plentiful opportunities in this area and together, help lead this field where engineering expertise is very much needed. The Safe AI Foundation is ready to engage and monitor this transformation and will participate in the efforts to develop "AI Studios Valley", which has been often ignored by Silicon Valley.
REFERENCES
[2] https://skimai.com/these-are-the-top-ai-tools-being-used-in-hollywood-films/
[3] https://www.newsweek.com/nw-ai/rise-ai-end-hollywood-we-know-it-2068807
[4] AI Manifestation Unfolded – Safe AI Foundation, May 2025.
[5] Media and Entertainment VC Firms Investing in 2025. See: https://visible.vc/blog/media-and-entertainment-vcs/
[6] Generative AI funding exploded over the past 2 years. See: https://www.emarketer.com/content/generative-ai-funding-exploded-over-past-2-years
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Disclaimer: The information in this digest is provided “as it is”, by the SAFE AI FOUNDATION, USA. The use of the information provided here is subject to the user’s own risk, accountability, and responsibility. The SAFE AI FOUNDATION is not responsible for the use of the information by the user.
Notes: The SAFE AI Foundation is a non-profit organization registered in the State of California and it welcomes inputs and feedback from readers, industry leaders, VCs, and the public. If you have things to add concerning AI Studios or would like to volunteer or donate, please email us at contact@safeaifoundation.com
