Jeffrey Katzenberg, the cofounder of DreamWorks Animation, has declared that Hollywood is increasingly embracing artificial intelligence as a creative tool, marking a significant shift in the entertainment industry’s relationship with AI technology. Speaking at Fortune’s Brainstorm AI conference in San Francisco on Tuesday, Katzenberg revealed that top Hollywood showrunners and creators are now viewing AI as an asset rather than a threat.
According to Katzenberg, industry professionals have found AI tools to be genuinely helpful in their creative processes. “I would say almost across the board they have all talked about how the AI tools today have been helpful to them,” he stated. The DreamWorks cofounder emphasized that these tools have made creators more productive while enabling them to “widen the diversity of their work, the quality of their work.” Rather than constraining creativity, Katzenberg insisted that AI is “inspiring” Hollywood’s creative talent.
DreamWorks Animation, the studio behind beloved animated franchises including “Shrek,” “Kung Fu Panda,” and “How to Train Your Dragon,” has been at the forefront of animation technology for decades. Katzenberg’s optimistic assessment comes in stark contrast to the anxiety that gripped Hollywood just over a year ago.
In 2023, more than 11,000 film and TV screenwriters participated in a strike lasting from May to September, with AI regulation being a central concern. The Writers Guild of America (WGA) fought for protections against AI replacing human writers, ultimately securing important safeguards in their agreement with the Alliance of Motion Picture and Television Producers (AMPTP). The final agreement stipulated that while AMPTP members can use AI-generated material, they cannot use AI to write or rewrite literary material. Crucially, AI-generated content won’t be considered source material, protecting writers’ credits, and writers cannot be required to use AI software.
Katzenberg has previously made bold predictions about AI’s transformative impact on animation production costs and timelines. At the Bloomberg New Economy Forum in Singapore in November 2023, he suggested that AI could reduce animated film costs by 90%. He noted that traditional animated movies required “500 artists five years to make,” but predicted that future productions might need only “10% of that” workforce within three years. This dramatic efficiency gain positions AI as both a cost-saving measure and a productivity enhancer for the animation industry.
Key Quotes
I would say almost across the board they have all talked about how the AI tools today have been helpful to them. They have seen them as a resource and an asset that have made them more productive.
Jeffrey Katzenberg, DreamWorks cofounder, speaking at Fortune’s Brainstorm AI conference about how Hollywood creators are responding to AI tools. This statement directly contradicts the fear and resistance that dominated industry conversations during the 2023 writers’ strike.
They find these tools an amazing resource for them — and it’s not constraining them, it’s inspiring them.
Katzenberg emphasizing that AI is enhancing rather than limiting creativity among Hollywood professionals. This framing positions AI as a creative partner rather than a replacement, which may help ease ongoing industry concerns about automation.
Well, the good old days when, you know, I made an animated movie, it took 500 artists five years to make a world-class animated movie. I don’t think it will take 10% of that three years out from now.
Katzenberg’s prediction from the Bloomberg New Economy Forum in November 2023, suggesting AI could reduce animation workforce needs by 90%. This dramatic forecast highlights both AI’s efficiency potential and the significant workforce displacement concerns facing the industry.
Our Take
Katzenberg’s optimistic AI narrative deserves scrutiny beyond the surface enthusiasm. While his assertion that creators find AI “inspiring” may reflect genuine sentiment among some professionals, the 90% workforce reduction prediction reveals the uncomfortable economic reality driving Hollywood’s AI adoption. The entertainment industry appears to be following a familiar pattern: initial resistance, negotiated protections, then gradual normalization of technology that fundamentally reshapes labor dynamics. The WGA’s strike victories—preventing AI from receiving writing credits and ensuring writers can’t be forced to use AI—are meaningful but may prove insufficient as AI capabilities advance. Katzenberg’s framing of AI as merely “a new paintbrush” understates its disruptive potential. Unlike previous tools, AI can generate complete creative outputs, not just assist in execution. The critical question isn’t whether AI inspires today’s employed creators, but whether it will eliminate opportunities for tomorrow’s aspiring artists. Hollywood’s AI journey will likely preview similar transformations across creative industries worldwide.
Why This Matters
Katzenberg’s endorsement of AI represents a pivotal moment in Hollywood’s evolving relationship with artificial intelligence technology. Coming from a legendary animation executive whose studio has shaped the industry for decades, this perspective carries significant weight and suggests that AI adoption in entertainment is accelerating despite initial resistance.
The contrast between the 2023 writers’ strike—where AI was viewed as an existential threat—and today’s more optimistic outlook reveals how quickly industry sentiment can shift once proper guardrails are established. The WGA’s successful negotiation of AI protections may have paradoxically enabled greater AI acceptance by ensuring human creativity remains central.
For the broader AI industry, Hollywood’s embrace signals that creative industries can successfully integrate AI while preserving human roles. However, Katzenberg’s prediction of 90% workforce reductions raises serious questions about long-term employment impacts in animation and related fields. As AI tools become more sophisticated, the entertainment industry will serve as a crucial test case for balancing technological efficiency with workforce preservation—a challenge facing virtually every sector undergoing AI transformation.
Recommended Reading
For those interested in learning more about artificial intelligence, machine learning, and effective AI communication, here are some excellent resources:
Recommended Reading
Related Stories
- Video game voice actors vote to allow use of AI voices
- Jenna Ortega Speaks Out Against Explicit AI-Generated Images of Her
- Alien’s Ian Holm AI to Criticize Fans Without Family Permission in 2024
- The Impact of AI on Software Engineering Jobs and Market Outlook
Source: https://www.businessinsider.com/dreamworks-cofounder-ai-is-amazing-resource-for-hollywood-2024-12