THE AI OF THE STORM

Navigating the Great AI Divide: production and protection

When it comes to AI, everyone and everything has two sides. While Hollywood publicly fights artificial intelligence in courtrooms, studios are quietly doubling down on it behind the scenes. A recent Los Angeles Times survey of studio job postings found that more than one in 10 openings were linked to working with AI.

Major studios are quietly recruiting engineers to build custom AI tools, while simultaneously hiring legal teams to protect their IP from unauthorized use. Because of potential backlash from fans and unions, most of this hiring is happening far out of the public eye.

Double Standards

On top of it, major studios are actively funding tech companies. Lionsgate recently expanded its partnership with AI startup Runway, Netflix acquired Ben Affleck’s AI tech company to launch a new experimental division, and Amazon MGM started a fund specifically for AI-assisted projects, as reported in The Atlantic. With top directors already using generative AI for pre-production design work, traditional illustrators and designers are watching their roles change in real time.

Viral IP Wars

Back in February, Hollywood got a major warning shot when a hyper-realistic AI clip of Brad Pitt and Tom Cruise fighting on a rooftop went viral (watch it on CNN), drawing immediate legal threats from studios and the MPA. Today, that trend has escalated from star likenesses to entire studio franchises, with users feeding copyrighted characters into AI tools, like placing Darth Vader right inside The Office (Deadline). The unauthorized manipulation of proprietary IP and actor likenesses across social media (without consent, credit, or compensation) presents Hollywood with its newest challenge.

Synthetic Talent

Back in our October 2025 newsletter, we covered the immediate pushback when a UK-based studio unveiled Tilly Norwood, the synthetic "actor" pitched as a pay-free, drama-free star. Despite heavy backlash from SAG-AFTRA and A-list talent, her creators are now taking the digital performer to the big screen as the lead in a new feature film, Misaligned, as reported in Variety. Particle 6, the studio, claims the project will run as a hybrid production pairing human crew alongside AI specialists. Whether traditional crew members will actually sign on to work with a digital lead remains the real test.

Korea’s Plunge

While Western markets remain locked in litigation limbo, international creators are fast-tracking AI-generated television straight to air. Driven by soaring costs, South Korean studios are using generative tools to craft full series and complex sequences—ranging from AI-assisted formats to entire action scenes built without live cameras—while major networks screen the finished projects (The Korea Times).

Pivoting Together

We’ve been tracking this evolution closely since our March 2025 issue, when director and screenwriter Paul Schrader praised ChatGPT’s script notes. The speed at which AI is entering development, production, and post isn't slowing down, but technology should always be a tool that serves human expertise, not a replacement for it. At Malin Entertainment, whether you need to incorporate new tools responsibly, protect your intellectual property, or help your team navigate these rapid industry shifts, we are here to support you every step of the way.

Cheers,

Laura Malin