Report reveals the role of Gen AI in reducing entertainment industry jobs, impacting skills, and raising job security concerns.
The entertainment industry is facing a significant transformation as generative artificial intelligence (Gen AI) technologies increasingly infiltrate various sectors, leading to a notable shift in employment dynamics. A comprehensive analysis by CVL Economics reveals a growing concern among entertainment leaders regarding the impact of Gen AI on job security. The report, which surveyed 300 industry leaders, including c-suite executives and senior to mid-level managers, between November 17 and December 22, 2023, uncovers a stark reality: Gen AI’s efficiency in content creation is reducing the demand for certain skill sets within the workforce.
The Shift in Employment Trends
The data indicates that a substantial 36% of entertainment leaders have observed a decreased necessity for specific skills in daily tasks, attributing this shift to the capabilities of Gen AI tools. This technology, known for generating images, text, and music by learning from existing data, has led to job reductions, consolidations, or eliminations in 75% of the businesses surveyed. The film and animation sector, in particular, is expected to bear the brunt of these changes more severely than others.
Sound designers are at the forefront of those impacted, with 55% of leaders predicting significant effects on their jobs within the next three years. Additionally, over 40% of respondents expressed concerns for music editors, audio technicians, and sound engineers, while approximately one-third foresee challenges for songwriters, composers, and studio engineers.
The onset of Gen AI technology, especially following the launch of tools like ChatGPT, has sparked debates on job security and the ethical use of AI in the entertainment industry. Notably, the Writers Guild of America and the Screen Actors Guild–American Federation of Television and Radio Artists have taken a stand against the potential job displacement caused by AI advancements. Despite recent contract negotiations that ended favorably for workers, the uncertainty surrounding Gen AI’s long-term impact remains a contentious issue.
The CVL Economics report also highlights the potential of Gen AI in revolutionizing content creation. Nearly half of the business leaders surveyed believe in the technology’s ability to produce realistic 3D assets and sound designs for movies, TV shows, and video games. Furthermore, 44% see Gen AI playing a pivotal role in foreign language dubbing, and 39% expect it to significantly contribute to music production by 2026.
However, the early months of 2024 have seen major companies like Riot Games, Unity Software, Amazon MGM Studios, Pixar, and Universal Music Group announcing layoffs, signaling a trend that might continue as the industry adjusts to the evolving landscape.