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The Impact of AI on Hollywood: Navigating Copyright and Union Negotiations

10/13/2025, 12:42:47 PM

The Core Event: AI's Role in Upcoming Hollywood Negotiations

As Hollywood studios prepare for contract negotiations with major unions, including the Directors Guild of America (DGA), Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA), and the Writers Guild of America (WGA), the emergence of artificial intelligence (AI) technologies, particularly the synthetic actress Tilly Norwood, is expected to be a central issue. The negotiations are set against the backdrop of the recent dual strikes in 2023, with the unions seeking to address unresolved concerns regarding AI's implications for copyright and the rights of human actors.

Key Issues Surrounding AI and Copyright

The legal landscape surrounding AI in Hollywood is complex and evolving. Jonathan Handel, an entertainment and technology lawyer, highlighted that the scanning of human actors for digital likenesses raises significant copyright questions. He noted that while studios may wish to retain data for future projects, such as reboots featuring de-aged characters, the unions have previously negotiated terms that could complicate these practices. The unions did not secure provisions regarding synthetic characters in their last contract, which may change in the upcoming negotiations.

Mishawn Nolan, a partner at an intellectual property law firm, emphasized the need for careful consideration of how data is captured and used in AI applications. The rapid advancement of AI technologies necessitates a reevaluation of traditional business practices in the entertainment industry, particularly concerning the ownership and longevity of digital likenesses.

The Broader Implications of AI in Creative Industries

The potential for AI to utilize unproduced screenplays owned by studios for training models poses another challenge. Handel pointed out that previous union agreements did not address retroactive copyright issues, which could become a contentious topic in negotiations. The use of generative AI tools in production also raises questions about copyright infringement, as the distinction between input and output can blur, complicating legal interpretations.

Criticism and Opposition: Concerns from Creative Professionals

Critics, including members of the Australian Writers' Guild, have voiced concerns over the economic impact of AI on creative industries. They argue that insufficient modeling of AI's effects on copyright protections could lead to significant job losses and wage reductions. Claire Pullen, CEO of the Australian Writers' Guild, criticized the Productivity Commission for failing to adequately assess the potential consequences of AI on the creative economy, which contributes significantly to Australia's GDP.

Official Statements & Responses

In light of these challenges, industry stakeholders are calling for a reevaluation of existing copyright laws to better protect creative rights in the age of AI. The Australian Writers' Guild has commissioned its own modeling, predicting substantial economic losses due to AI's encroachment on creative jobs. Meanwhile, the ongoing legal battles, such as the New York Times' lawsuit against OpenAI, highlight the urgent need for clearer guidelines on copyright and AI usage.

Conflicting Reports & Gaps

While the legal status of AI's use of copyrighted materials remains unsettled, various stakeholders have differing views on the implications of recent rulings. The outcome of the New York Times case could set important precedents for how AI developers utilize publicly available content, but the broader ramifications for the entertainment industry are still unclear.

Verbatim Quotes

  • “The way that you’ve operated for the past year, the past five years, the past 10 years, you cannot assume that that is the business environment in which you can operate moving forward,” — Mishawn Nolan, Managing Partner, Nolan Heimann
  • “Directors see things that other people – and AI programmes – don’t. Their vision is something that AI will never replace.” — Andy Harrower, CEO, Directors UK

As Hollywood navigates these complex issues, the outcome of the upcoming negotiations will likely shape the future of AI's role in the industry and its impact on creative professionals.