A CVL Economics survey reveals that 36% of entertainment executives who use generative AI believe that their staff members no longer require specialized skills for day-to-day duties and responsibilities.
A report by consulting firm CVL Economics revealed that generative artificial intelligence (AI) will result in the loss of more jobs in the film and animation industries than in other industries.
Also Read: AI Took 4,000 Jobs in May, Is Yours at Risk?
The January 2024 report was based on a survey of 300 leaders from six entertainment industries. The leaders included C-suite executives, senior executives, and mid-level managers.
Generative AI to cause more job losses in films and animation industry—Report – https://t.co/8iIwoBGGoo pic.twitter.com/WVzlrnjgO8
— Nairametrics (@Nairametrics) February 3, 2024
According to the report, sound engineers will face the greatest displacement in the next three years. This was foreseen by 55% of the business leaders surveyed. The report added that a little over 40% of respondents considered music editors, audio technicians, and sound engineers vulnerable. Also, roughly 33% expect songwriters, composers, and studio engineers to experience similar impacts over the next three years.
AI in Job Roles
Shortly after the launch of ChatGPT, the Writers Guild of America (WGA) and the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) declared a strike over advancements in AI that might affect job roles and security.
Important takeaways:
1. WGA writers are not obligated to & will not be returning to work immediately.
2. WGA picketing is suspended but the committee is encouraging members to still support SAG-AFTRA strike
3. Once deal points are settled, members will still vote to ratify them https://t.co/yHvXOjFOQL— shanna 🇵🇸🍉 (@shittybonmots) September 25, 2023
Several companies, however, use human-written content to develop generative AI models. They use these models to create digital replicas and characters depending on the author’s likeness. The writers feared that generative AI would potentially replace their roles if no form of regulation was put in place.
Concerns additionally persisted among WGA and SAG-AFTRA members despite the recent favorable contract negotiations with the Alliance of Motion Picture and Television Producers.
SAG-AFTRA strike ends as AI deal reached, Hollywood still torn pic.twitter.com/SgYnVX4WsK
— JaguarDigital (@JaguarDigi16) November 13, 2023
These concerns were about the uncertainty surrounding the impact of Gen AI on the film and television industry and other entertainment sectors.
Job Loss Concerns in the Entertainment Industry
The report noted that when several entertainment industries face challenges, the desire to increase productivity, cut costs, and identify new revenue streams will be top of mind.
According to the report, 47% of the business leaders surveyed felt that GenAI would effectively generate 3D assets and realistic sound design for film, television, and video games over the next three years. Moreover, another 44% believed GenAI could generate realistic and convincing foreign language dubbing for film or television dialogue, and 39% believed GenAI would generate music mixes and masters by 2026.
However, Riot Games, Unity Software, Amazon MGM Studios, Pixar, Universal Music Group, and others announced layoffs within the first few weeks of 2024.
Entertainment layoffs: Pixar, UMG, Twitch, Amazon and more – Los Angeles Times https://t.co/6wVIfb9qwO
— TruthWillCome2.0 (@Foodie2400) January 24, 2024
More Job Loss, According to CVL Economics
Further job losses, moreover, are expected in the coming months, according to CVL Economics. The company said that the introduction of GenAI signifies a large-scale transition from existing techniques into new processes, which will likely rebalance the demand for labor and capital across the entertainment industries. In doing so, creative workers will face an era of disruption, defined by consolidating some job roles, replacing existing ones with new ones, and eliminating many jobs entirely.
Several other reports, however, including Indeed’s report, have established that the entertainment industry will be one of the most impacted by AI.
Indeed’s AI at Work Report: How GenAI Will Impact Jobs and the Skills Needed to Perform Them https://t.co/HH5ipPqW94
— Learn Logic (@learn_logic) September 25, 2023
According to the report, software development, media and communications, and arts and entertainment are among the top 20 sectors economy-wide facing exposure to GenAI.
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