By stating Bytedance's AI model 'undercuts the ability of human talent to earn a livelihood,' Hollywood's actors' union (SAG-AFTRA) implicitly admits the technology is good enough to be a credible threat. Their condemnation serves as a powerful, albeit unintentional, endorsement of the AI's capabilities.

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.

Unlike the tech industry's forward-looking nostalgia, Hollywood's culture is rooted in preserving traditional filmmaking processes. This cultural attachment makes the creative community view AI not just as a job threat, but as an unwelcome disruption to the established craft and order, slowing its adoption as a creative tool.

The Writers' Guild of America strike offers a sophisticated model for labor unions navigating AI. Instead of an outright ban, they negotiated a dual approach: winning protections against AI-driven displacement while also securing guarantees for their members to use AI as an assistive tool for their own benefit.

The potential acquisition of Warner Bros. by Paramount, backed by the power-seeking Ellison family, could paradoxically benefit Hollywood's workforce. An owner focused on ambition over immediate profits may ignite a spending war, forcing competitors to increase pay and boosting employment for writers, actors, and crew.

New copyright laws would be co-opted by monopolistic publishers and studios. The Writers Guild strike proved that the most effective tool for creators to protect themselves from AI displacement is sectoral collective bargaining.

Forget what executives say publicly. The massive capital allocation for AI data centers is the real evidence of impending job displacement. This level of investment only makes sense if companies expect significant cost savings from automating human labor, making capital the truest indicator of intent.

A major risk with AI is that leaders, accustomed to viewing technology as an efficiency tool, will default to cutting jobs rather than exploring growth opportunities. Ethan Mollick warns of a "failure of imagination" where companies miss the chance to use AI to expand their capabilities and create new value.

The most tangible fear of AI in Hollywood isn't replacing A-list actors, who have leverage for consent and compensation. The immediate threat is to production jobs—grips, makeup—as AI enables digital reshoots and effects, reducing the need for on-set labor.