New Rumor Says Disney Is Going To Double Down On AI

The Wrap has just posted a story indicating that “sources” have leaked that Disney plans to announce a “major AI initiative” that will focus on post-production and visual effects. Supposedly, this will involve “hundreds” of Disney employees and could also include theme parks, but not the customer-facing aspects.

AI could speed up post-production and visual effects, but it should not be used to replace employees.

What does this mean?

Good question. They aren’t saying anything more than what I have already written.

It isn’t clear when or if Disney will make this announcement, but given Bob Iger’s comments about AI at the Canva Create Showcase, I’m not surprised.

Iger said,

“Walt Disney himself was a big believer in using technology in the early days to tell better stories. And he thought that technology in the hands of a great storyteller was unbelievably powerful.

Don’t fixate on its ability to be disruptive — fixate on [tech’s] ability to make us better and tell better stories. Not only better stories, but to reach more people.
You’re never going to get in the way of it. There isn’t a generation of human beings that has ever been able to stand the way of technological advancement.”

See, Bob Iger is both an investor in Canva and a board member of that company. It is in his best interest to embrace and push AI as Canva is becoming known for it. This is why I’m not really surprised that he would want to double down on artificial intelligence.

Why I find this concerning.

If AI is used as a tool to assist and not replace employees then I would not argue as much against it, but given the massive layoffs at the Walt Disney Company lately, my money is on more cuts.

Moving towards the theme park end, it’s worrisome to me that Disney could try to use an AI model to upsell guests. While they will likely spin it as making it easier for guests to find what they want, I am not all to comfortable with an AI being given my information to try and determine what is the best way to part with more money.

The Wrap pointed this out as well saying, 
Disney is uniquely poised to integrate AI into its operations, as one of the most diversified and data-intensive entertainment companies on earth, producing countless models and collecting tons of data about everything from the way that guests of its theme parks spend their money (and time) to what you’re watching on Disney+, the company’s direct-to-consumer streaming platform.

Hollywood is walking a fine line with teasing AI after the recent strikes and contracts.

Hollywood is already trying to find ways to use AI to “help” them complete VFX and other work. Lionsgate announced last month that they would be working with Runway Partners to “utilize AI to develop cutting-edge, capital-efficient content creation opportunities…. potential applications to their pre-production and post-production process. We view AI as a great tool for augmenting, enhancing, and supplementing our current operations.”

This comes after various Hollywood unions struck deals with studios that included provisions against the use of AI. How this will be used will be incredibly important moving forward, as there is potential for many lost jobs.

Again, Disney’s involvement is currently “rumored,” but some have pointed out that this would be the kind of thing Disney would try to use to rally ahead of its Q4 2024 earnings call on November 14, which now happens ahead of the market opening. Given that Disney already expected some setbacks for the final quarter, this nugget could help offset losses to the market that day.

What do you think? Comment and let us know!