Tuesday, April 16, 2024

AI Adoption in Entertainment Shows Some Gains: Goldman Sachs


Generative AI's impact in the workplace has been a hot-button issue in most industries, especially in the creative fields. Nevertheless, gen AI adoption is beginning to materialize across sectors — among the strongest levels in the Motion Picture & Sound Recording subsector, per recent Goldman Sachs analysis of U.S. Census Bureau survey of U.S. businesses shared with VIP+.

Over the past year, Goldman Sachs analysts have predicted that the present wave of investment and adoption of gen AI tools by U.S. businesses would lead to significant, widespread productivity growth within the next decade. With the U.S. Census Bureau's recent release of an AI-focused supplement from its "Business Trends Outlook Survey," Goldman Sachs analysts assessed the status of that wave across industry sectors and within specific subsectors.

On average, under 5% of U.S. companies across all industries reported adopting generative AI in the production of goods and services as of October 2023. Compared with adoption rates in other industries, the Arts, Entertainment and Recreation sector ranked in the bottom half of industries, with 4.1% of businesses in the sector citing gen AI use as of October 2023.

Early adoption was followed by a nearly complete halt, with no incremental adoption as of March 2024, a slowdown that might in part reflect work stoppages during last year's WGA and SAG-AFTRA strikes, which had AI at the top of their grievance lists.

However, zooming in on industry subsectors suggests more significant adoption rates in film and TV production. As of last October, 14.3% of businesses in the Motion Picture and Sound Recording subsector reported using generative AI to produce goods and services, followed by 1.6% of incremental gain in March 2024.

Furthermore, businesses in the Motion Picture and Sound Recording subsector were among the most likely to report plans to integrate generative AI in the next six months, increases outpaced only by Computing and Information subsectors.

While we aren't likely to see AI-generated background actors or fully AI-written film scripts anytime soon, generative AI tools being used for non-creative and administrative functions of the entertainment business is a growing possibility.

But gen AI is materializing in some areas of film and TV production, though not without debate. Major and indie film studios alike have already experimented with AI-generated art, albeit to mostly negative reception among consumers.

Generative AI tools are also likely to come into use for visual effects. OpenAI's yet unreleased Sora text-to-video software has raised alarms for some VFX artists, though there are plenty of kinks to work out. But given how AI has transformed productivity in other tech-driven industries, there are VFX artists who see the benefits to AI when it comes to saving time and streamlining workflows.

Variety VIP+ Explores Gen AI From All Angles — Pick a Story

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