# Hollywood’s AI Dilemma: Navigating the Uncharted Waters

In the bustling hub of creativity known as Hollywood, a storm is brewing, and the culprits are neither traditional rivals nor unforeseen scandals – it’s artificial intelligence (AI) that stands poised to redefine the entertainment industry. This AI revolution, led by Silicon Valley giants like OpenAI, is not just a passing fad but a seismic shift, promising to transform how content is created, distributed, and consumed. Yet, despite its potential, Hollywood remains bewilderedly entrapped, struggling to understand, adapt to, and eventually harness these technological advancements.

## Silicon Valley vs. Hollywood: The Divergence in AI Perception

This contrast in approach was on full display at the recent OpenAI DevDay in San Francisco. Here, Sam Altman, CEO of OpenAI, unveiled the Sora app, presenting it as an innovative boon to content creators, much akin to a “new generation of fanfiction.” Altman assured attendees that “creators, rights holders, people are very excited about the potential of this,” suggesting that AI would deepen human connection through creativity.

Yet, when I transitioned to Los Angeles for Bloomberg’s Screentime event, the tone was drastically different. Here, the leaders of Hollywood grappled with the looming threat that AI poses. Sora, with its rapid ascent to 1 million App Store downloads, was a predominant topic of concern. There was a collective unease, a notion that Hollywood was on the brink of being “steamrolled by technology that’s moving faster than they can comprehend.”

This dichotomy highlights the chasm between Silicon Valley’s optimistic embrace of AI’s potential and Hollywood’s wary stance. While tech leaders see an opportunity for evolution, entertainment executives are entrenched in a state of ambiguity, too nervous to confront the challenges head-on.

## Hollywood’s Reluctance and the Copyright Conundrum

The reluctance of Hollywood to tackle AI is best exemplified in the evasive responses observed during the Screentime event. Despite the buzz surrounding Sora and its capabilities, discussions often circled back to the phrase, “we care about copyright,” repeated as though it were a reassuring mantra. Yet, behind this veneer of concern lies the stark reality that OpenAI trained its AI on vast swathes of content without explicit permission.

Industry leaders like Netflix’s co-CEO Greg Peters and Paramount Skydance CEO David Ellison skirted the topic of Sora, choosing instead to focus on the mundane integration of AI tools in production processes. This avoidance underscores a critical failure to address fundamental issues such as intellectual property rights and creative ownership.

In stark contrast stands the music industry, which, due to its previous battles with digital disruption, appears more unified and prepared to navigate AI’s impact. Warner Music CEO Robert Kyncl, reflecting on past experiences of adapting to streaming, emphasized the importance of licensing content for AI training and forewarned of consequences for those bypassing legal frameworks.

## Lessons from the Music Industry: A Model for Adaptation

The music industry’s resilience and optimism in facing AI can serve as a blueprint for Hollywood’s own transformation. Music labels, having survived the tumultuous transition to streaming services, have developed robust strategies for safeguarding their intellectual property. As Kyncl predicted, “AI will benefit the music industry long-term,” much like YouTube’s evolution from a copyright battleground to a key distribution platform.

This foresight contrasts sharply with Hollywood’s current paralysis, where the broader industry hesitates to take unified action against AI companies. Instead of collaboration, the industry opts for passivity, allowing tech giants like OpenAI to forge ahead unchallenged. The implication is clear: as Hollywood dithers, AI companies continue to adopt a “forgiveness rather than permission” strategy, fundamentally reshaping the landscape of entertainment.

## Navigating the Future: Questions for Hollywood

Faced with these challenges, a crucial question remains: How can Hollywood reconcile its creative traditions with the inexorable march of technology? This quandary isn’t simply about protecting existing models but exploring novel possibilities that AI offers to enrich storytelling and expand creative horizons.

– **What steps must Hollywood take to establish a collective response to AI’s rising influence?**
– **How can Hollywood leverage the lessons learned from the music industry’s adaptation to technological disruption?**

In exploring these questions, Hollywood not only stands to preserve its legacy but also to propel itself toward an innovative future where technology and creativity coexist harmoniously. Silence or refusal to adapt is in no one’s interest but that of a tech world eager to steer the future of entertainment unfettered. It’s time for Hollywood to embrace AI not just as a challenge but as an opportunity for growth, reinvention, and ultimately, for better storytelling.