Generative AI (Gen AI) is likely to result in more job losses in the movie and animation sector compared to other industries, says a report from CVL Economics.
The report, released in January 2024, is based on feedback from 300 industry leaders across six entertainment sectors, including top executives and managers, collected between November 17 and December 22, 2023. It reveals that 75% of those surveyed believe Gen AI technologies have led to job cuts, consolidations, or reductions within their divisions.
Gen AI, known for autonomously generating content like visuals, texts, and music using machine learning, is rapidly evolving. The study highlights that 55% of industry heads anticipate sound designers will face the most significant impact within three years. More than 40% think music editors, audio technicians, and sound engineers will be affected, with about a third foreseeing changes for songwriters, composers, and studio engineers.
The concern about AI’s role in the industry was underscored by strikes from the Writers Guild of America (WGA) and the Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) in July 2023, following ChatGPT’s introduction. They protested using AI to create content and digital likenesses, fearing job replacements without proper protections.
Even after settling contracts with the Alliance of Motion Picture and Television Producers, unease about Gen AI’s future role remains among WGA and SAG-AFTRA members.
The CVL Economics report also notes that 47% of leaders believe Gen AI will soon be capable of producing realistic 3D assets and sound designs for movies, TV shows, and video games. About 44% think AI will soon dub films or TV shows convincingly in foreign languages, and 39% expect AI to produce music mixes and masters by 2026.
With major companies like Riot Games, Unity Software, Amazon MGM Studios, Pixar, and Universal Music Group announcing layoffs in early 2024, the report predicts more job reductions are on the horizon.
