Hollywood’s AI Dilemma: OpenAI’s Sora Sparks Debate

OpenAI’s AI-driven video generator, Sora, has captured Hollywood’s interest—but also its caution. The company has engaged in discussions with major studios, including Walt Disney Co., Universal Pictures, and Warner Bros. Discovery Inc., about the tool’s commercial and creative applications. However, no formal deals have been reached, as studios remain hesitant about AI’s business implications and the potential for backlash from labor unions.

Hollywood Weighs AI’s Promise and Risks

OpenAI, valued at $157 billion, has framed Sora as a way to enhance filmmaking—reducing costs in animation and visual effects while increasing efficiency. While some filmmakers and creatives have shown enthusiasm for AI’s potential, major studios are grappling with key concerns:

• Data and Content Control: Studios are wary of sharing proprietary assets and data with a large tech firm.

• Union and Labor Relations: AI was a major point of contention in the 2023 Hollywood labor strikes, making studios cautious about embracing new AI tools too quickly.

• Revenue and Rights Allocation: If AI-generated content generates profits, determining how to distribute earnings among actors, writers, and filmmakers remains unclear.

AI in Filmmaking: A Tool, Not a Replacement

Despite concerns about AI’s role in Hollywood, industry professionals that use these AI tools emphasize that creating films with AI isn’t as simple as pressing a button. While Sora and similar tools can generate visuals, they lack the human intuition, storytelling ability, and creative direction that define filmmaking.

Filmmakers still need to conceptualize ideas, write scripts, direct scenes, and make artistic choices—AI is just another tool in their toolbox. Visual effects artists, animators, and editors may use AI to streamline processes, but they remain essential in guiding the technology to achieve a specific creative vision. AI can enhance workflows but doesn’t replace the human touch that makes cinema an art form.

As filmmaker Nik Kleverov, one of the first seven Sora artists announced by OpenAI last spring, noted, “Yes, AI tools are allowing creatives to rapidly iterate and substantively explore ideas that would otherwise not have been made. However, we're finding that a lot of the same parts of the creative human-led storytelling go into it. One interesting shift is that "post" has become more central to the entire process, where things are both starting and ending with post-production.”

Mixed Reactions from Hollywood

Some industry figures are cautiously optimistic. Ben Affleck, an actor and director, believes AI will streamline costly and time-consuming aspects of filmmaking. In a 2024 interview, he noted that AI is “going to disintermediate the more laborious, less creative and more costly aspects of filmmaking,” but clarified that it wouldn’t replace filmmakers or screenwriters.

The conversations with studios have been more complex. While many executives acknowledge that AI is already reshaping creative workflows, they are cautious about its broader implications. Studios recognize the potential cost savings AI could bring, particularly in animation and visual effects, and they don’t want to fall behind in adopting emerging technologies. However, concerns over intellectual property, labor relations, and long-term business impacts continue to make AI adoption a delicate issue.

Still, many studio executives remain skeptical, recalling how Google, Meta, and Netflix reshaped entertainment—often profiting from Hollywood content without providing direct financial returns to studios. This history has made film executives hesitant to hand over valuable intellectual property to another tech giant.

AI Partnerships: Caution or Collaboration?

Since unveiling Sora in early 2024, OpenAI has explored potential collaborations with entertainment industry leaders. However, the company has signaled that it is not rushing into formal partnerships, emphasizing that Sora is still in its early stages.“We’re so early with Sora,” said Brad Lightcap, OpenAI’s chief operating officer. “I think part of getting these things right is you can’t just say, ‘Okay, we have a model, now we’re going to force a partnership.’”

Some studios have explored a deal with OpenAI in which they would train a bespoke version of Sora using their own characters and content, but strictly for internal use. This arrangement would allow companies like Disney or Warner Bros. to integrate AI into their production process while ensuring that the technology isn’t available to the public—preventing unauthorized public use of iconic characters like Snow White or Batman. Others have considered licensing their catalogs to OpenAI in exchange for multimillion-dollar deals, avoiding legal disputes over copyright.

One studio has already taken the leap: Lionsgate partnered with AI startup Runway in September to train a new AI model using its film catalog, citing potential benefits in pre-production and post-production. Lionsgate Vice Chair Michael Burns highlighted the studio’s approach, saying, “Several of our filmmakers are already excited about its potential applications to their pre-production and post-production process," adding, "We view AI as a great tool for augmenting, enhancing and supplementing our current operations.”

What’s Next for AI in Hollywood?

For now, OpenAI’s Sora remains an experimental tool in the eyes of major studios. Hollywood is at a crossroads—balancing innovation with concerns over creative control, labor relations, and revenue-sharing models. Studios recognize AI’s potential to lower costs and enhance production, but without clear business terms and strong protections, they remain reluctant to commit.

Hollywood has historically been cautious with new distribution models, but AI is evolving too fast to ignore. The real question isn’t whether AI will reshape filmmaking—but when and how studios will adapt.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.