In recent years, the entertainment industry has found itself in uncharted territory as generative artificial intelligence (AI) moves from merely a concept to a contested item on the contract table. As studios, unions and creative talent navigate this shifting landscape, the use of generative AI in Hollywood labor negotiations offers a compelling preview of how technology is changing the world of work, and how legal frameworks are adapting accordingly.
The Rise of AI in Hollywood Labor Talks
Although AI has long been a tool in film and television production, with VFX, motion capture and digital effects, what’s new is generative AI’s ability to produce creative content, replicate performances and accelerate workflows. These developments sparked major concern among unions when they observed a looming threat to jobs, credit, compensation and creative control.
When the Writers Guild of America (WGA) and the Screen Actors Guild‑American Federation of Television and Radio Artists (SAG-AFTRA) went on strike in 2023, AI’s role in content creation was a major focal point. The concern was not just about job loss but also regarding equitable recognition and compensation if AI were to be used alongside human creative professionals.
Key Issues on the Table
- Credit and authorship: One of the landmark outcomes of recent agreements is the explicit statement that generative AI tools cannot be treated as authors. For example, in the WGA contract, material produced by generative AI is not considered “literary material,” meaning the human writer retains credit.
- Consent and usage: Unions negotiated language that prohibits studios from forcing writers or performers to use AI. The decision to use AI must rest with the creative professional, and any AI-generated draft provided by a studio must still guarantee full compensation and credit to the human creator.
- Job protection and displacement: AI isn’t only a creative tool. In below-the-line work such as editing, background animation, visual effects, and localization, there’s genuine concern about whether AI will replace parts of the workforce rather than augment it. As a result, labor contracts increasingly include guardrails against unilateral replacement via technology.
- Negotiation of new workflows: Beyond guarding against job loss, Hollywood is embracing the potential of AI to help with business functions—like marketing, localization or post-production. But doing so requires rethinking bargaining strategies, breakdowns in roles, and how creative and technical work is divided.
Implications for Other Industries
What’s happening in Hollywood matters well beyond studios and streaming platforms. The negotiation themes (authorship, consent, job displacement, AI oversight) are already appearing in publishing, software development, design, and professional services sectors. For companies in regulated industries or with unionized workforces, the Hollywood scenario serves as a blueprint for how technology and labor can coexist—and what legal pitfalls to avoid.
Businesses that deploy generative AI must ask: Who is credited? Who is compensated? Who owns the output? And crucially—who controls the technology? If creative work is automatically assigned to AI, or employees are pressured to use generative tools without negotiation or training, the legal exposure rises substantially.
Legal & Contractual Lessons for Employers and Creators
The strongest take-aways revolve around contract clarity and proactive negotiation.
First, organizations should clearly define in their agreements whether generative AI is a tool under human control or a substitute for human labor. If the latter, union issues and regulatory scrutiny are likely.
Second, contracts should reflect how credit and compensation will be distributed when AI is used, especially when human authorship remains central.
Third, consent is key: forcing usage of AI or using AI-generated material without appropriate human oversight may lead to claims of unfair labor practices or breach of contract.
Finally, workflows and role definitions must evolve: what used to be “human only” may become “human plus AI,” and contracts may need to reflect that shift rather than constrain parties in outdated paradigms.
Conclusion
The entertainment industry’s labor negotiations over generative AI are more than high-profile headlines—they are early signals of how work, creativity, technology and law will intersect in the coming decade. As a result, expect there to be continued interest in the upcoming SAG-AFTRA TV and Theatrical contract negotiations in 2026, the first since the historic 2023 strike. In the meantime, for creators, employers, unions and legal advisors, the message is clear: plan for AI, define its place, protect the human contribution, and make sure the contract language aligns.
If your organization is using generative AI in creative production, marketing, design, or any labor-intensive workflow, or if you represent talent whose work may be impacted, our firm is ready to assist you. Contact Romano Law today to help draft, review or negotiate contracts that safeguard your rights, address AI risks and reflect the future of work.
Contributions to this blog by Kennedy McKinney.
