The fear that AI will replace top artists is misplaced. The correct framing is what happens when top talent gets AI tools. A director like Steven Spielberg could potentially increase their output 20-fold for a fraction of the cost, leading to a massive increase in high-quality creative work.

The traditional Hollywood production model, with its bloated crews and high costs, is unsustainable. AI will drastically lower production costs while audience preferences shift to short-form video. This dual threat will force a brutal economic reckoning and consolidation.

Don't view generative AI video as just a way to make traditional films more efficiently. Ben Horowitz sees it as a fundamentally new creative medium, much like movies were to theater. It enables entirely new forms of storytelling by making visuals that once required massive budgets accessible to anyone.

Hollywood has been losing film productions to cheaper locations. AI-powered visual effects could slash costs by eliminating the need for on-location filming. This could make shooting in Los Angeles economically viable again, sparking a resurgence for the city as a production hub.

Social media allows anyone to be a "reality TV star," but creating high-production fiction requires immense capital. As AI tools democratize filmmaking, countless talented storytellers who prefer working behind the scenes—the Christopher Nolans of the world—can finally produce their visions.

While large enterprises remain cautious about ceding creative control to AI, small and mid-sized businesses see a breakthrough. AI overcomes the economic barriers to content production, enabling them to execute personalization and campaigns at a scale that was previously out of reach.

Instead of relying solely on massive, expensive, general-purpose LLMs, the trend is toward creating smaller, focused models trained on specific business data. These "niche" models are more cost-effective to run, less likely to hallucinate, and far more effective at performing specific, defined tasks for the enterprise.

Historically, the value of content IP like scripts and music declined sharply 30-60 days after release. AI tools can now "reimagine" these dormant libraries quickly and cost-effectively, creating new derivative works. This presents a massive, previously untapped opportunity to unlock new revenue streams from back catalogs.

AI will commoditize the *act* of creating content (the 'doing'). The value will shift entirely to the *idea* behind the content (the 'thinking'), making strategic creativity the most valuable skill.