Creating a Movie with a Prompt

Hollywood AI: Investing in the Future of Entertainment

Camera person working on movie set.
Written by

Edward Tsai

Published on

Read

11 min

In the ever-evolving narrative of Hollywood, a new protagonist has emerged that’s starting to take a starring role: Artificial Intelligence (AI). AI is a technological marvel and a creative catalyst, redefining the essence of storytelling and production. Already, it’s playing a role in creating and evaluating scripts, designing professional and realistic images, auto dubbing and translating (into both audio and visual), and even creating movie-like animations and sequences with just a “prompt.”

In this blog, we’ll explore key topics related to this transformation, providing an overview of areas where AI is employed in Hollywood, some of the latest AI innovations, opportunities and challenges, and trailing-blazing venture-backed startups. And if that whets your appetite, please join us for a webinar to dive deeper.

WHAT IS “HOLLYWOOD AI”?

Today, Hollywood stands at the cusp of an AI-driven era, where advanced machine learning and AI are enhancing creative processes and redefining distribution, marketing, and the overall business model of the film industry. Integrating AI in areas like automated editing, facial recognition for casting, and deepfake technology for posthumous performances pushes the boundaries of cinema, setting the stage for a new era of innovation and creativity in Hollywood.

“Hollywood AI” encompasses many uses and innovations in filmmaking where AI plays a crucial role.

They include:

  • Scriptwriting: AI-powered tools like OpenAI’s GPT-4 are used to brainstorm plot ideas and write initial drafts.
  • Script Analysis and Development: AI algorithms analyze scripts for storytelling elements, character development, and potential audience appeal. They can provide data-driven insights into a script’s likely success, helping writers and producers refine their work.
  • Casting and Box Office Predictions: AI tools can predict box office performance based on various factors, including casting choices. AI can analyze an actor’s previous work to predict on-screen chemistry and audience reception, helping casting directors make more informed decisions.
  • Production: From location scouting to optimizing shooting schedules, AI streamlines the production process and ensures safety protocols are followed on set.
  • Visual Effects (VFX) and Animation: AI drives more sophisticated and realistic VFX. It’s used in creating detailed CGI characters, enhancing visual storytelling, and in animation, contributing to more lifelike character movements and expressions.
  • Virtual Actors and Deepfakes: AI technologies are used to create digital representations of actors and to generate deepfakes, where one person’s likeness is superimposed onto another in a video. It can resurrect deceased actors for performances, de-aging, or altering appearances.
  • Automated Editing and Post-Production: AI is used to streamline editing by sorting through footage, selecting the best takes, and suggesting edits. It also aids in other post-production tasks like color correction and sound design.
  • Film Marketing and Distribution: AI analyzes consumer data and market trends to guide marketing strategies and distribution plans, helping studios effectively target the right audience.
  • Interactive and Personalized Content: AI is being explored to create interactive film experiences where the storyline might change based on viewer choices, similar to interactive TV shows.

THE TECHNOLOGIES ENABLING “HOLLYWOOD AI”

Now that we’ve outlined some of the applications, let’s explore the technologies making them possible.

  • Large Language Models like GPT-4: GPT-4’s sophisticated language understanding and generation capabilities offer scriptwriting assistance, automated dialogue generation, and content creation. It enables writers to explore new narrative possibilities and enhance creative development.
  • Generative Diffusion Models: Advanced AI systems such as OpenAI’s DALL-E 2 generate high-quality images from textual descriptions. They can be used for conceptualizing and visualizing scenes during the preproduction phase, aiding in storyboard creation and enhancing the overall visual planning of a project.
  • Neural Codec Language Models: Technology like Microsoft’s VALL-E has set new standards in speech synthesis. Capable of replicating a specific voice from a short sample while retaining emotional nuances, this technology is revolutionizing voice dubbing and other voiceover work, especially in animated films and global content localization.
  • Advanced Facial Recognition and Emotion Analysis: Leveraging deep learning, these technologies offer more nuanced and accurate emotion analysis and facial recognition. Their use in Hollywood extends to refining casting processes, enhancing audience sentiment analysis, and creating more expressive and lifelike CGI characters, particularly in animation and VFX.
  • Real-Time Rendering Engines: Engines such as Unreal Engine 5 provide groundbreaking improvements in visual fidelity and interactivity. They enable filmmakers to visualize complex scenes with photorealistic graphics in real-time, streamlining production and enhancing creative flexibility.
  • AI-Driven Special Effects and Editing Tools: Advancements in AI algorithms automate and enhance visual effects and editing. These tools increase post-production efficiency, from automating routine editing tasks to creating complex VFX.AI-Driven Special Effects and Editing Tools: Advancements in AI algorithms automate and enhance visual effects and editing. These tools increase post-production efficiency, from automating routine editing tasks to creating complex VFX.

PIONEERING STARTUPS DRIVING THE HOLLYWOOD AI REVOLUTION

Beyond AI’s impact on Hollywood, the technologies are deployed in other entertainment industries, such as gaming, to create personalized or immersive virtual experiences. Below, we feature some of the venture-backed startups championing this transformation through AI-powered solutions to scriptwriting, editing, and visual effects.

1. AI in Data-Driven Storytelling

AI’s influence in scriptwriting has been magnified by startups that combine the art of storytelling with the precision of data analytics.

StoryFit: AI-Powered Insights for Next-Generation Storytelling. This Alumni Ventures portfolio company analyzes scripts and manuscripts to predict their market success and audience appeal. Its AI examines various story elements, such as character development, plot structure, themes, and genre conventions. This analysis helps users make informed decisions about which projects to pursue, modify, or market differently. The technology also offers audience segmentation data to improve market targeting.

ScriptBook: Pioneering Predictive Analytics in Scriptwriting. ScriptBook has gained significant traction and funding for its AI-driven script analysis. ScriptBook’s platform provides filmmakers with data-driven insights into plot structure, character arcs, and more. The technology aids in making informed decisions about which scripts to develop.

Greenlight Essentials: Revolutionizing Creative Decision-Making. This startup uses machine learning to offer predictive insights into audience preferences and market trends. The technology assists in tailoring content to meet audience expectations.

2. Visual Effects and Animation:

AI’s Creative Breakthroughs AI is enabling the creation of more sophisticated and emotionally engaging content In visual effects and animation.

DeepMotion: Pioneering AI in Motion Capture. This startup’s remarkable technology captures and translates human movement into digital animations, providing a more natural and realistic portrayal of characters, crucial for immersive storytelling.

Pinscreen: Advancing Hyper-Realistic Avatars. Pinscreen’s technology, capable of generating lifelike digital humans, has garnered significant funding and attention.

DGene: Leveraging AI for AR, VR, and Content Production: DGene provides AI-driven single-camera motion capture, volumetric avatar creation, film restoration, and visual effects rig and prop removal, among other tools and solutions.

3. AI Scene Generation, Editing, and Post-Production

In the production and post-production arena, AI-driven editing tools are streamlining workflows, enhancing efficiency and creativity.

HeyGen: AI-Generated Avatars and Voices. Heygen.ai is a cutting-edge company that specializes in leveraging AI for video and audio dubbing and translation. Its technology allows for one-click translation of spokesperson videos, integrating features like natural voice cloning, lip-syncing, and authentic talking styles.

Pika: Idea-to-Video Platform. With a simple prompt, Pika can create a video segment as well as animation on a selected picture. It can also “fill out” the unknown areas beyond the original frame of a picture, creating realistic and dynamic cinematic shots. In November 2023, the company raised a $55M round of venture funding from leading VCs like Lightspeed.

Runway ML: Transforming the Editing Landscape. This well-funded startup in the AI editing space offers an advanced suite of tools that automate and enhance the editing process. Its platform uses AI to analyze footage, make editing suggestions, and even handle color correction, significantly reducing post-production time.

Kognat: Innovating in Visual Effects. Kognat, another emerging player, specializes in AI solutions for visual effects. Its software automates complex VFX tasks, enabling smaller studios to achieve high-quality effects that were once the exclusive domain of big-budget productions.

BigRoom.tv: AI Editing for the Mobile Generation. This AV portfolio company revolutionizes how digital content is created and shared in social media, converting traditional landscape videos into captivating vertical formats. This isn’t just a simple rotation of visuals; the platform employs intelligent subject detection, advanced auto-tracking, framing, and subtle editing techniques. The automation simulates the effect of a live camera crew, making every edit look professionally crafted and engaging.

4. AI in Gaming and Virtual Worlds

The gaming industry and virtual worlds stand at the forefront of narrative innovation, with AI being the key to unlocking personalized, immersive experiences. AI can create dynamic storylines and experiences that adapt to player choices, ensuring a unique experience for every playthrough. It can also expedite the rendering process — which is especially important for speeding up the creation of special effects and expansive, detail-rich environments.

Character AI: Dynamic Characters in Games: Character.ai’s platform allows users to interact with chatbots, enabling them to speak to in-game characters or build their own characters with distinct personalities for text chat conversations (think much more interesting and dynamic NPCs). The company is notable for its focus on neural language models, which are utilized in creating conversational applications. These applications serve various purposes, including imagination, brainstorming, language learning, and more.

Anything World: 3D Animations: This AV portco enables creators to bring environments to life with minimal manual input. By harnessing machine learning algorithms, Anything World accelerates rendering processes to prototype and iterate rapidly. This technological leap helps craft special effects in movies and complex environments in games and virtual worlds.

Realeyes: Emotion AI and Facial Recognition: This technology empowers businesses to harness the power of AI in understanding human responses, thereby driving growth and enhancing customer engagement. Meta used Realeyes to evaluate its “virtual avatar” through an “emotion study.”

AI’S DOUBLE-EDGED SWORD

These AI technologies are profoundly enabling — and in some aspects, troubling. The industry is balancing the potential of AI to enhance storytelling with the need to preserve the integrity of the craft. We’ll explore three of the AI-related issues that Hollywood is facing.

1. Will AI Create and Enhance or Destroy Hollywood Jobs?

The emergence of AI has ignited a complex dialogue about efficiency and effectiveness vs. jobs.

On the one hand, AI automates tasks — from script analysis to editing and visual effects — potentially reducing or eliminating the need for certain manual roles. For example, Runway ML has shown the ability to expedite the post-production process in editing. Will this remain an assistant or replace workers? In scriptwriting, platforms like ScriptBook offer predictive analytics on a script’s potential success. Will this surface or suppress writers?

Conversely, AI’s infusion in filmmaking creates new jobs and necessitates new skills. AI specialists, data analysts, and technicians who understand both the language of cinema and technology are becoming increasingly valuable. For instance, the rise of virtual production has created a demand for professionals who can operate and manage complex AI-driven systems.

Moreover, AI is enhancing existing roles. Cinematographers, editors, and even scriptwriters are finding new ways to collaborate with AI tools to expand their creative possibilities, leading to richer, more innovative storytelling.

AI is also being used to improve decision-making. By analyzing market trends, audience preferences, and past performance data, AI tools offer valuable insights to guide production and marketing strategies. This shift optimizes resource allocation and the potential for commercial success — potentially securing jobs.

This debate about AV vs. humans is, of course, not exclusive to Hollywood. As with most technologies, there will likely be positive and negative impacts on our jobs. The happy medium is for AI to augment human skills and reduce repetitive, time-consuming tasks — leaving professionals to focus on the more creative aspects of their work.

2. Are Deep Fakes and Virtual Actors Hollywood’s Future?

The rise of virtual actors and deepfake technology is redefining the boundaries of storytelling and acting.

Virtual actors have arrived thanks to sophisticated AI algorithms and advanced computer-generated imagery. With virtual actors, constraints of physicality and reality no longer apply. Filmmakers’ characters can defy conventional human limitations, ranging from fantastical beings to hyper-realistic digital doubles of existing actors. This technology is particularly transformative for science fiction and fantasy, where imagination often outpaces the feasibility of practical effects or human performance.

Two examples of companies in the space:

Digital Domain, renowned for its visual effects in major blockbusters, has leveraged AI to create incredibly lifelike digital characters. The company’s work on Thanos in the Marvel Cinematic Universe exemplifies the blend of AI with performance capture, resulting in a character that resonates both emotionally and visually.

Similarly, FaceBank’s expertise in crafting digital likenesses of celebrities opens new doors for how personas are maintained and used, transcending the need to be in front of a camera … or even alive.

Deepfake technology uses AI to create hyper-realistic video and audio content. From seamlessly de-aging actors to enabling performances from deceased actors, the technology allows filmmakers to craft narratives in previously unimaginable ways. For instance, Martin Scorsese used deepfake technology in “The Irishman” to de-age the lead actors.

Innovators in this space include:

Synthesia enables the generation of AI-driven video content, which has vast applications in creating multilingual film content and bringing historical figures to life in educational contexts.

DeepTrace focuses on the ethical side of the equation, offering detection tools that safeguard against the misuse of deepfake technology.

Metaphysic creates photorealistic content with generative AI, creating real-time, photorealistic face swaps. The tool was made famous by the company’s “Tom Cruise” deep fake, plus its use in American Idol.

This use of AI again raises some ethical questions. Is this displacing actors or augmenting them and improving filmmaking? The likely answer is: both.

3. Will the Next Seinfeld or Star Wars Be Produced by an AI prompt?

This question requires a deep dive into the capabilities of AI in creative processes, the uniqueness of human creativity, and the audience’s reception to AI-generated content.

First, let’s consider the capabilities of AI in creative fields. Recent advancements in AI have shown remarkable proficiency in creating content ranging from visual art to music and scriptwriting. These systems can generate novel content based on vast databases of existing works, learning styles, themes, and storytelling techniques.

However, while AI can replicate styles and narrative structures, the spontaneous, often illogical leap of creativity that marks popular works like Seinfeld or Star Wars is still uniquely human. These shows were groundbreaking in their originality and resonated with audiences in unexpected ways. As it currently stands, AI still lacks a strong ability to truly understand human emotions and societal nuances to replicate such success.

Second, the essence of Seinfeld and Star Wars lies not just in their content but in the context and timing of their creation. Seinfeld redefined sitcoms by focusing on the minutiae of everyday life. Star Wars combined mythic storytelling with cutting-edge technology to create an unprecedented cinematic experience. For AI to create something of a similar impact, it would need to have a deep understanding of its audience’s cultural, social, and historical context. Currently, that’s beyond the reach of AI, which operates on data and algorithms without real-world experience or emotional understanding.

Finally, the audience’s reception to AI-generated content is a critical factor. Part of the charm and appeal of shows like Seinfeld and Star Wars is their human element — the quirks and imperfections, the personal visions of their creators, and the human stories behind them. AI-generated content may lack this human touch, which is often integral to a work’s reception and longevity. Additionally, there are concerns about authenticity and originality with AI-generated content, which might affect how it’s perceived and valued by audiences.

That said, there is significant promise in the realm of AI-driven creativity. The rapid advancements from technologies like GPT-3 to GPT-4 within a year demonstrate AI’s growing capabilities in understanding and generating complex narratives. AI’s proficiency in scriptwriting and analysis, static image creation, and increasingly animated scenes is reaching or already at human-level professional standards. This suggests a future where AI could significantly contribute to storytelling’s creative and technical aspects.

JOIN OUR WEBINAR FOR MORE ABOUT HOLLYWOOD

AI The future of AI in content creation is not only about AI achieving a level of autonomy in creativity but also about how it can augment human creativity. The next few years are crucial in shaping how AI will integrate into the creative process, potentially leading to the creation of content that resonates as deeply as the classics we cherish.

For more about the future of AI in Hollywood, join our webinar. We’ll discuss in more depth some of the trends, technologies, and venture companies at the forefront of this disruption. Sign up here.