THE APPLICATION OF AI IN HOLLYWOOD: SWIM AGAINST THE TIDE OR RIDE THE WAVE?

AI isn’t coming. AI is here. Now. In the room with us. And I mean that both physically and metaphorically. People in entertainment keep talking like AI is this nebulous monster that is going to devour Tinseltown. But AI has quietly been at work in the industry for years. It’s just becoming more visible now. It started over a quarter century ago when studios employed primitive AI and algorithmic software to create cutting-edge visual effects in movies like The Matrix and The Lord of the Rings. It eventually became more prevalent in post-production workflows in the 2010’s, but also blossomed out into other areas like data-driven script and audience analysis during a film’s development phase or targeted trailer and key art optimization in the marketing phase.

Image Courtesy of RawPixel

Fast-forward to 2026. AI is looking to burrow in every facet of the filmmaking process – development, prep, production, post, marketing and distribution. And across mediums and formats as well. Television. Games. Commercials. Viral content. Nothing is untouched nowadays. So the question becomes, do we resist or do we adopt? And the follow-up question depends on how you answer the first question. If you resist, what does that resistance look like? How much will it cost in time and resources to maintain older models of implementation? Can you still remain competitive in the marketplace with such a stance?

On the other hand, if you choose to adopt AI into your workflows, what does that look like? Where is the AI sourcing content from? Are you operating within safe legal and ethical boundaries? Are stakeholders on board? Do you truly understand how AI can best maximize operational efficiency without losing those “human elements” like emotional intelligence, reason, logic and origination that AI just can’t replicate? Such discussions need to happen in a realistic frame of mind. Not whether or not AI is coming and how we will address it as if it’s some future event, but acknowledging that AI is squarely a part of Hollywood’s universe now and will not be going away, meaning what do we do with the present?

According to a July 21^st AFP News article titled, “A Once Wary Hollywood Slowly Warms to AI,” author Thomas Urbain notes that Netflix acquired a little-known AI company in March and has since utilized GenAI workflows on approximately 300 titles, albeit mostly in post-production. And for now, that’s where most of Hollywood’s acceptance of AI seems to be centered. Post. It’s safe. It’s easy. Not a lot of pushback there if you call it “enhanced VFX.” Hence, the “slow warming.” Hollywood can stomach a few VFX artists losing their jobs if it means saving on budget. But when we start talking production, talent and other areas that affect key above-the-line positions, resistance becomes a lot more aggressive. See the latest anti-AI pushes by union leadership, primarily at SAG and the WGA.

We have a slightly different take than a lot of the major studios. Kugga Entertainment lives at the intersection of technology and entertainment. Our model has always been determining the best way to meld the two, whether that be behind the camera in ways that make the filmmaking funnel more streamlined and productive, or whether it’s in front of the camera with the type of stories we tell. The goal is to make entertainment people love the same way a good widget-maker makes widgets – use the best tools available to bring down costs and maximize profits while focusing on giving your customers the best possible product. And we feel AI offers a competitive edge to those who are willing to use it now when the rest of the industry is still debating.

For us, this entails adopting AI into every step of our workflow in a way that doesn’t run afoul of copyrights and legal protections, but also doesn’t shrink back from naysayers who say it’s costing jobs. It might be, but it’s also creating new ones. Most early adopters of disruptive systems get major pushback when they begin adopting technology that industry leaders deem taboo. And that’s okay. It’s also those same adopters who wind up at the forefront when the inevitable crashes on everyone’s front doorstep. AI is not coming. It’s not knocking on the front door. It’s an 800-pound gorilla already sitting here in the living room with us, and it’s saying, “I’m not leaving.” So you can choose to fight the gorilla or you can say, how can I make the gorilla work for me? Kugga is doing the latter. Not just because it’s bad business to fight a battle you won’t win. But because it’s bad business to ignore a model that makes your business better if you use it right.