AI and the Entertainment Industry: A Legal Opportunity Amid Technological Disruption

The Looming Threat: AI as a Job Killer?

Widespread concern has taken hold in Hollywood and across the entertainment industry that artificial intelligence (AI) will displace human creators—writers, actors, musicians, directors—at an unprecedented scale. During the 2023 strikes, generative AI (GenAI) emerged as a central point of contention, provoking fears that automation could erode decades-old creative professions [GAI & Collective Bargaining in...]. Unionized labor has raised alarms about AI rewriting scripts, duplicating likenesses, and replacing background performers with synthetic avatars.

While these concerns are legitimate, they risk obscuring a more profound reality: AI is not shrinking the entertainment economy—it is supercharging it. The resulting surge in media output, monetization potential, and legal complexity is not a threat to legal professionals. On the contrary, it is a catalyst for unprecedented demand for intellectual property (IP) expertise, regulatory compliance, licensing, and litigation services.

This report argues that while AI may transform roles in media creation, its overall impact will be a net expansion across the entertainment ecosystem—particularly within the legal sector. The explosion of AI-generated content is fueling a proliferation of copyright disputes, rights-of-publicity claims, contract renegotiations, and international regulatory challenges, making legal counsel indispensable at every stage.

The Content Explosion: Scale and Projections

Far from reducing creative output, AI is dramatically accelerating the volume and accessibility of media production. Independent artists can now generate songs using AI voice models; studios use AI to render realistic visual effects or generate multiple script variations overnight; and social media platforms are inundated with AI-assisted videos, deepfakes, and short-form content.

Market data reveals the magnitude of this shift. The generative AI market is projected to reach $69.85 billion by 2025 [51 Generative AI Statistics 20...], while the broader AI in media and entertainment sector was valued at $25.98 billion in 2024 and is expected to grow to $99.48 billion by 2030 [AI In Media & Entertainment Ma...]. Other projections suggest even steeper growth, with Renub Research forecasting a market size of $166.77 billion by 2033 [AI in Media & Entertainment Ma...], reflecting a compound annual growth rate (CAGR) exceeding 22%. Such numbers reflect not replacement, but amplification—an industrial-scale increase in content creation powered by AI tools.

Even more staggering is the prediction by the World Economic Forum that AI-generated content could account for up to 90% of all information on the internet in the near future [Artificial Intelligence in Med...]. This transformation will flood digital platforms with new creative works—many of which will carry unresolved or contested legal status.

Intellectual Property: The Core Legal Battleground

The crux of the legal challenge lies in intellectual property. While AI enables rapid content creation, it simultaneously destabilizes foundational principles of authorship, ownership, and fair use.

Copyright Ownership and Human Authorship

The U.S. Copyright Office has taken a firm stance: works generated entirely by AI, without human authorship, are not eligible for copyright protection [Beyond the Strikes: How AI Is ...]. This creates significant uncertainty for producers relying on AI tools, particularly when a human’s creative contribution is minimal or indirect.

However, the threshold for “human authorship” remains legally ambiguous. At the same time, AI models are trained on vast datasets derived from copyrighted materials—films, music recordings, scripts, and published works. This raises critical fair use questions: Is it lawful for AI companies to ingest protected content for training without permission?

ArentFox Schiff identifies “AI — ‘Fair Use’ and the Creation of GenAI” and the “Human Authorship Requirement for Copyright Registration” as among the top 10 legal developments currently reshaping the entertainment industry [Media & Entertainment: 10 Lega...]. These issues have already spawned multiple high-profile lawsuits, including those filed by visual artists, authors, and music rights holders against AI platforms like Stability AI and Anthropic.

Rights of Publicity and Digital Likenesses

Another explosive area is the unauthorized use of digital replicas—AI-generated likenesses and voices of performers. Recent advances in deepfake technology make it possible to mimic living or even deceased celebrities with startling accuracy, raising ethical and legal red flags.

In response, Tennessee enacted the ELVIS Act in 2024, a landmark law protecting performers’ voices and likenesses from unauthorized AI replication [Framing the Future: How AI’s M...]. This legislation represents one of the first state-level efforts to explicitly address AI misuse in entertainment and sets a precedent for similar laws elsewhere.

Davis Wright Tremaine notes that synthetic performances using AI require specific contractual safeguards in talent agreements, including consent, compensation, and permitted uses [Lights, Camera, Legislation: A...]. These provisions are becoming standard in new contracts and are triggering a wave of negotiations in film, television, and music.

California, Washington, and New York are expected to follow Tennessee’s lead, creating a patchwork of regulatory requirements that legal teams will need to navigate carefully.

Contract Law and Collective Bargaining in the AI Era

The integration of AI into production workflows has fundamentally altered collective bargaining dynamics. As highlighted in The National Law Review, generative AI is reshaping entertainment labor, forcing unions like SAG-AFTRA and the Writers Guild of America to negotiate protections against AI replacement [GAI & Collective Bargaining in...].

Collective bargaining agreements are evolving to include:

  • Restrictions on using AI to rewrite or modify writers’ scripts [GAI & Collective Bargaining in…].
  • Requirements for opt-in consent before actors’ likenesses can be digitized or reused.
  • Compensation models for AI-generated performances derived from prior recordings.

Reed Smith LLP observes that “contracts will need to address not only who owns AI-generated content, but also how liability is allocated for infringement risks” [Entertainment and Media Guide ...]. This complexity increases demand for legal professionals who can draft, audit, and enforce agreements in this emerging domain.

Global Regulatory Fragmentation and Compliance Challenges

The legal implications of AI in entertainment are not confined to the United States. Jurisdictions worldwide are rolling out divergent regulatory frameworks, creating a complex compliance landscape.

These regulations demand that legal advisors stay ahead of fast-moving changes in data privacy, AI ethics, and cross-border IP enforcement. The lack of harmonization means multinational productions will require tailored legal strategies for different markets—a role ideally suited for specialized entertainment attorneys.

Economic Impact: Job Displacement vs. Job Creation

While AI may reduce the need for certain roles—such as background performers, junior animators, or script assistants—the net economic effect is far from zero-sum.

Three key drivers suggest job growth, not loss, across legal and technical domains:

  1. Expanding content volume increases licensing, distribution, and rights clearance needs.
  2. Litigation demand escalates due to copyright disputes, right of publicity claims, and contract breaches involving AI.
  3. Regulatory compliance requires dedicated legal oversight, especially for AI ethics, data sourcing, and international standards.

Furthermore, DemandSage reports that 83% of companies now view AI as a top business priority, and up to 97 million people are projected to work in the AI sector by 2025 [50 NEW Artificial Intelligence...]. Many of these roles involve legal, compliance, and risk management support.

Rather than eliminating work, AI is shifting demand toward higher-value, legally complex tasks. Lawyers will be essential in determining ownership, allocating liability, enforcing rights, and ensuring ethical use.

Conclusion: Lawyers as the New Gatekeepers of Creativity

The narrative that AI will dismantle the entertainment industry overlooks a critical truth: more media means more legal work. The intellectual property explosion driven by AI is creating a golden age for entertainment law.

Every AI-generated song, deepfake performance, or synthetic script opens a Pandora’s box of copyright questions, contract disputes, and regulatory risks. Tennessee’s ELVIS Act, federal fair use debates, union negotiations, and international compliance regimes all underscore the need for sophisticated legal guidance.

Rather than viewing AI as a threat, lawyers should see it as an opportunity—one that demands innovation, expertise, and leadership. The role of counsel is no longer just advisory; it is foundational to the future of creative expression in the digital age.

The golden era of entertainment law is not ending. It is being reinvented—faster, broader, and more legally intricate than ever before.