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Artificial Intelligence: a core component of content creation

Steady aggregate growth – Source PwC’s Global Entertainment & Media Outlook 2024-2028, Omdia.

Artificial intelligence (AI) has revolutionized the television and entertainment industry, transforming every aspect of the value chain, from content creation to distribution and consumption. The advent of generative AI, coupled with advances in automation, has opened up new opportunities and challenges in this industry. This report analyzes the impact of AI on the audiovisual sector, its potential and the ethical challenges it brings.

Technological disruption in the audiovisual industry:

At the 19th International Digital Media Regulation Workshop in Cartagena, experts highlighted how AI is disrupting the creation and consumption of audiovisual content. Jorge Fontevecchia stressed that traditional television is rapidly evolving into new forms of digital consumption, while Beth Doane, founder of the Miami Digital Summit, emphasized the challenges facing storytelling in the age of AI. According to Doane, AI is beginning to replicate narrative patterns in a formulaic way, which can remove the human “soul” from stories, transforming the act of storytelling into a manipulative technique. This concern points to a larger challenge for the industry: how to ensure that stories do not lose their human essence as AI takes more of a role in their creation?

Technological transformation also affects business models in the audiovisual sector. According to PwC Argentina’s Audit: Global Entertainment & Media Outlook 2024-2028, the expansion of streaming services and technologies such as AI is driving revenue growth in the entertainment industry. The report highlights that while streaming remains one of the most dynamic areas, generative AI is beginning to influence how content is produced and consumed. By 2025, it is estimated that 95% of content on social networks will have some AI component, raising questions about the sustainability of traditional audiovisual production models.

Paying to connect – Source PwC’s Global Entertainment & Media Outlook 2024-2028, Omdia.

AI and content creation: Efficiency and creativity:

In his TTV News column Audiovisual in the time of AI, Adrian Garelik, CEO of Flixxo, discusses how AI is transforming audiovisual production, from script writing to video editing and visual effects creation. AI makes it possible to optimize processes, reducing time and costs, which democratizes the production of high-quality content. However, Garelik also points out the risk of AI-generated content becoming “content shampoo”, repetitive formulas designed to satisfy algorithms and maximize user retention. The lack of human intervention could result in a loss of diversity and creativity in storytelling.

This phenomenon is also reflected in the expansion of the OTT (Over-the-Top) market, in which streaming platforms seek to capture and retain users through highly effective content. According to the PwC report, the OTT market in Argentina grew 68.5% in 2023, driven by global leaders such as Netflix, Amazon Prime Video and Disney+. AI is crucial for the development of these services, as it allows to personalize the user experience and optimize content production based on their preferences. However, this can also lead to a homogenization of content and the danger that stories are more geared towards pandering to algorithms than telling authentic narratives.

The future of TV is connected – Source PwC’s Global Entertainment & Media Outlook 2024-2028, Omdia.

Ethical opportunities and challenges in the era of generative AI:

During SET Expo Brazil 2024, experts discussed the impact of generative AI on audiovisual production. Otavio Martins, anti-piracy operations manager at Nagravision, highlighted the importance of using AI to protect the authenticity of content, while Dr. Kellyanne Alves underscored the challenge of maintaining credibility in journalism with AI’s growing ability to generate realistic images and videos. The ability of AI to create hyper-realistic content raises questions about the ethics of its use, especially in journalism, where authenticity and truthfulness are essential.

AI is not only transforming visual content, but also music and sound design in the audiovisual industry. From the creation of musical compositions to mood-based sound effects, AI is facilitating new forms of creative output. However, Luis Bechtold of Adobe Enterprise points out that while AI increases efficiency, it raises ethical concerns about technological dependence and the potential loss of the human touch in artistic creation. In this sense, human-machine collaboration seems to be the future, enabling a fusion between human creativity and AI efficiency.

Streaming revenue diversifies – Source PC’s Global Entertainment & Media Outlook 2024-2028. Omdia

The future of entertainment and AI:

As artificial intelligence evolves, so does its role in audiovisual production. AI has the potential to democratize access to high-quality production tools, enabling more voices and diversification of content. In addition, the personalization of content through AI-based algorithms promises to adapt narratives to the preferences of specific audiences, generating a profound change in the way audiovisual content is created and consumed.

However, the ethical and operational challenges are significant. The potential for AI to replace human creators, the homogenization of content, and the growing influence of algorithms are issues that the industry must urgently address. To harness the potential of AI without sacrificing creativity and authenticity, it will be essential to find a balance between technology and human intervention.

AI is reshaping the entertainment industry in unprecedented ways. Audiovisual production is in a stage of radical transformation, driven by the efficiency and creative capabilities of AI. However, the future of this industry will depend on how creators and companies handle the ethical and operational challenges that arise as AI becomes a central component in content creation.