The entertainment industry has entered a new chapter with the advent of artificial intelligence (AI). According to AP News, new laws effective January 2025 regulate how AI can be used in movies, marking a pivotal moment in Hollywood’s relationship with technology. These regulations come on the heels of years of strikes and debates about fair compensation, creative control, and the existential role of artists in an increasingly automated world.
The Background: A History of Strikes and Labor Movements
The Writers Guild of America (WGA) and Screen Actors Guild (SAG-AFTRA) strikes of the 2020s laid the groundwork for the current legal framework. The core issue during these strikes was the fear that AI would replace human labor, from screenwriters and actors to post-production specialists. These concerns were not unfounded, as studios experimented with AI-generated scripts, de-aged actors, and entirely virtual performers.
Hollywood’s unions fought for protections, demanding transparency about AI’s role in the creative process and assurances that humans—not machines—would remain central to storytelling. The new laws echo these demands, requiring studios to disclose when AI is used and ensuring fair compensation when AI recreates an actor’s likeness or generates dialogue based on a writer’s style.
The New Legal Framework: AB 2602 and AB 1836
Two significant laws, AB 2602 and AB 1836, effective January 2025, mark a major step in Hollywood’s regulation of artificial intelligence.
According to CBS8, AB 2602 addresses the use of digital replicas of living performers. Contracts permitting the creation or use of a digital replica must now specify this provision clearly, ensuring performers are fully informed about how their likeness may be used. Furthermore, the law mandates professional representation for performers during contract negotiations involving digital replicas, safeguarding their rights.
AB 1836, as detailed by CBS8, extends these protections to deceased performers. It prohibits the commercial use of digital replicas of deceased performers without obtaining explicit consent from their estates. Covering films, TV shows, video games, and other media, this law seeks to respect performers’ legacies and prevent unauthorized exploitation.
These laws aim to balance innovation with ethical practices, requiring studios to obtain explicit consent and ensuring fair compensation for both living and deceased performers. By addressing potential misuse of AI, California has set a precedent for protecting artists’ rights in the face of technological advancements.
The Present: Impact on the Industry
The introduction of AI-specific regulations will likely have mixed effects on Hollywood. On one hand, these laws aim to protect jobs and preserve the integrity of creative expression. Studios must now navigate stricter oversight, which could slow production timelines but might also lead to more thoughtful, human-driven storytelling.
However, there is a risk that these regulations will widen the divide between large studios and independent creators. Major studios can afford the legal compliance and advanced AI tools needed to stay competitive, while smaller production houses may struggle to adapt. This could centralize power further in an industry already dominated by a few conglomerates.
A Reflection of the Past
This moment in Hollywood mirrors other technological shifts in entertainment history. In the 1920s, the transition from silent films to talkies displaced thousands of silent-era stars and filmmakers. Similarly, the rise of digital effects in the 1990s altered the role of practical effects teams. Each time, labor movements and legal interventions shaped how these transitions unfolded.
The AI debate also echoes broader societal trends. As automation reshapes industries from manufacturing to medicine, Hollywood’s struggle serves as a microcosm of the larger question: What is the value of human labor in an increasingly automated world?
The Future: A Creative Renaissance or a Creative Crisis?
The new AI laws may offer Hollywood an opportunity to reimagine storytelling. AI can enhance creativity when used responsibly, from generating immersive virtual sets to aiding screenwriters with ideas. However, if studios prioritize cost-cutting over innovation, the industry risks producing formulaic, AI-driven content devoid of the human touch that has defined Hollywood for over a century.
Moreover, these laws raise questions about ownership and authorship. If an AI program generates a screenplay or a character, who owns the copyright—the programmer, the studio, or the AI itself? The answers to these questions will shape the industry’s future and potentially influence global intellectual property laws.
A Broader Implication
Hollywood’s embrace of AI is not just about entertainment; it reflects society’s reckoning with technology. Will we use AI as a tool to amplify human creativity, or will we allow it to commodify and homogenize art? The entertainment industry has always been a bellwether for cultural shifts, and its handling of AI will set a precedent for other creative fields.
As the industry moves forward, one thing is clear: Hollywood’s story is not just about movies but about humanity’s role in a world increasingly shaped by machines. Whether AI becomes a partner or a rival in the creative process will depend on the choices made by studios, artists, and lawmakers in the years to come.
