In 2025, Hollywood embraced AI but failed to deliver impressive results.
AI has been part of Hollywood for a while, but this year marked a significant shift in its integration. The entertainment industry has long utilized various generative AI tools for post-production tasks, such as de-aging actors and eliminating green screen backgrounds. These technologies have often served as valuable aids for artists, helping them tackle tedious tasks that would otherwise consume excessive time. However, in 2025, Hollywood began to embrace generative AI in ways that seemed less practical, focusing on text-to-video outputs that haven’t proven their worth in traditional production processes. Despite the investment and enthusiasm, no generative AI project has yet justified the hype surrounding it.
The relationship between Hollywood and AI didn’t start on a high note. Studios were poised to take legal action against the companies behind these technologies, as their video generation models appeared to be trained on copyrighted material. Major production companies took steps to file lawsuits against AI firms for this reason. Yet, instead of pushing these companies away, some of Hollywood’s biggest players opted to collaborate with them. We’re just beginning to see the potential outcomes of these new generative AI partnerships, but early signs suggest things could get messier soon.
While larger companies like Google and OpenAI dominated the headlines, smaller startups also sought to carve out their niche in the entertainment space. Asteria, for instance, is Natasha Lyonne’s venture aimed at creating film projects with ethically developed video generation models. Then there’s Showrunner, an Amazon-backed platform that allows users to create animated “shows” from simple text prompts in Discord. These newcomers are eager to prove that their version of generative AI can enhance film and TV development while reducing production costs.
However, Asteria’s initial film announcement was met with skepticism, as it lacked substance beyond hype. Similarly, Showrunner’s offerings felt like poorly made imitations of actual animated shows. It seemed that Showrunner’s true aim was to secure partnerships with established studios like Disney, hoping to integrate their technology into platforms that would allow users to create custom content featuring beloved characters from major franchises.
Initially, the idea of Showrunner seemed far-fetched, given that its models produced content reminiscent of clunky JibJab animations. Yet, Disney soon indicated its interest in experimenting with this type of content, despite the limitations of text-to-video generators. In December, Disney struck a three-year, billion-dollar licensing deal with OpenAI, enabling users to create AI-generated videos featuring 200 characters from franchises like Star Wars and Marvel.
Netflix was among the first major studios to fully embrace generative AI, using it for special effects in one of its original series. The streaming giant published guidelines for partners interested in adopting generative AI, emphasizing cost savings on visual effects as a key motivation. Amazon quickly followed suit, releasing several Japanese anime series that were poorly localized due to the absence of human translators or voice actors.
Amazon’s generative AI dubbing became a prime example of the technology’s shortcomings, revealing a lack of effort in ensuring quality for AI-generated projects. This was also evident in Amazon’s machine-generated TV recaps, which often contained inaccuracies. These missteps suggested that Amazon underestimated the audience’s ability to notice the flaws in AI-generated content. Although the studio retracted its AI-dubbed series and recap feature, it left the door open for future attempts.
The entertainment industry’s increasing comfort with generative AI, despite its mixed reception, raises concerns about the quality of content being produced. None of these projects have convincingly demonstrated why audiences should be excited about a future shaped by this technology, aside from the interests of cost-cutting executives.
Looking ahead, the collaboration between Disney and OpenAI hints at a more pronounced AI presence in Hollywood next year. Disney plans to dedicate a section of its streaming service to user-generated content from Sora and will encourage its employees to utilize OpenAI’s ChatGPT products. The significance of this deal lies in the message it sends to other studios about adapting to the evolving landscape as Hollywood enters this new phase.
Regardless of Disney’s confidence in this direction, the studio has made it clear that it doesn’t want to fall behind in the accelerating adoption of AI. This sets a precedent for other production houses, and if this trend continues, we may be facing an influx of generative AI content that audiences will have to navigate.
