Impact of Gen AI on Entertainment Industry Job Losses and Uncertainties 1

As Gen AI continues to reshape the landscape of content creation, the report underscores the urgent need for robust safeguards to protect workers from job displacement.

In a groundbreaking report released by CVL Economics, Gen AI’s pervasive influence on the film and animation industry is predicted to result in a significant wave of job losses, surpassing other sectors.

The consultancy firm surveyed 300 leaders from six entertainment industries, unveiling a stark reality where 75% of respondents acknowledged that Gen AI tools, software, and models have already led to the elimination, reduction, or consolidation of jobs within their divisions.

Gen AI, renowned for generating diverse content such as images, text, and music without explicit programming, employs machine learning to understand and replicate patterns from existing data. As the technology continues to evolve, its impact on various entertainment roles becomes more pronounced.

According to the report, a staggering 55% of industry leaders foresee sound designers being the most affected over the next three years. Additionally, concerns loom over other roles, with over 40% identifying music editors, audio technicians, and sound engineers as vulnerable, while approximately 33% anticipate impacts on songwriters, composers, and studio engineers.

The turmoil sparked by Gen AI in the entertainment sector was further exacerbated in July 2023 when the Writers Guild of America (WGA) and the Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) declared a strike.

The move was prompted by fears among workers that AI advancements could potentially replace their roles, with companies utilizing content by writers to train Gen AI programs and create digital replicas and characters based on actors’ likenesses.

Despite recent favorable contract negotiations with the Alliance of Motion Picture and Television Producers, uncertainties linger among WGA and SAG-AFTRA members regarding the impact of Gen AI on the film and television industry, as well as other entertainment sectors.

The report reveals that 47% of business leaders believe Gen AI will effectively generate 3D assets and realistic sound design for film, television, and video games over the next three years. Another 44% foresee Gen AI playing a crucial role in generating realistic and convincing foreign language dubbing for film or television dialogue. Additionally, 39% believe that Gen AI will be capable of generating music mixes and masters by 2026.

However, the industry is already experiencing the harsh realities of these predictions, with major players like Riot Games, Unity Software, Amazon MGM Studios, Pixar, and Universal Music Group announcing layoffs within the first few weeks of 2024. CVL Economics warns that further job cuts are anticipated in the coming months, signaling a challenging period for those working in the entertainment industry.

As Gen AI continues to reshape the landscape of content creation, the report underscores the urgent need for robust safeguards to protect workers from job displacement. The delicate balance between technological advancements and job security remains a key concern for industry leaders, workers, and stakeholders alike.

In conclusion, the transformative power of Gen AI in the entertainment industry is undeniable, but its disruptive impact on jobs demands a thoughtful and strategic approach to ensure a sustainable and inclusive future for all involved.

This comprehensive report sheds light on the multifaceted challenges posed by Gen AI, urging the industry to navigate these changes responsibly to safeguard the livelihoods of those who contribute to the vibrant world of entertainment.