When Hollywood Goes Digital: The Ethical Perils of AI in Film and TV

Hollywood has consistently embraced technological advancements, from ancient sound and Technicolor to modern computer-generated imagery (CGI), all of which have reshaped storytelling. However, artificial intelligence (AI) represents a more profound shift, affecting the very core of creative expression.

AI's capabilities now include convincingly mimicking human faces, voices, and writing styles. This allows for the synthesis of entire performances without an actor present, script generation by algorithms, and even the "casting" of non-existent performers. While some see this as a revolutionary leap, others view it as an impending crisis.

As Stacey Lee of Johns Hopkins Carey Business School observes, AI introduces "complex legal and ethical challenges" that the entertainment industry is currently ill-equipped to handle. Recent years have underscored the gravity of these issues through union strikes, lawsuits, and public debates about the preservation of authentic human artistry.

The Stakes are Real: Tilly Norwood and the Backlash

In late 2025, Dutch studio Xicoia introduced Tilly Norwood, an entirely AI-generated actress. This debut was not merely a publicity stunt, as the studio announced Tilly was on the verge of signing with a Hollywood agent. This marked the first instance of an "AI performer" being treated like a human actor with professional representation, transforming AI from a tool into a rival competing for roles against human counterparts.

The reaction to the AI actress was swift and negative. Melissa Barrera, star of In the Heights, condemned the move as "gross," expressing a wish for actors represented by the same agent to sever ties. Writer and actress Mara Wilson raised concerns about the hundreds of living young women whose faces were composited to create Tilly, questioning why the studio didn't hire these women initially.

Wilson's critique highlights a significant ethical problem with generated AI: its reliance on countless actual images, videos, and performances to construct its "originals." The individuals whose likenesses contributed to Tilly's creation received neither credit nor compensation.

Xicoia's CEO, Eline Van der Velde, defended the project, calling Tilly "a piece of art" and comparing AI to technologies like puppetry, animation, and CGI, which initially faced resistance before gaining acceptance. However, unlike CGI characters such as Gollum, Thanos, or Shrek, Tilly does not merely expand creative possibilities; she directly competes for jobs with human performers. This crucial distinction is why so many artists reacted negatively to her emergence.

Protests, walkouts, and union pressure

The Tilly Norwood controversy was not an isolated incident. Performers have, for years, been raising concerns about AI's impact on their careers, leading to protests, picket lines, and extensive bargaining negotiations.

2023 SAG-AFTRA Strike

In 2023, Hollywood experienced a historic shutdown as both the Writers Guild of America (WGA) and SAG-AFTRA went on strike. While issues such as pay, streaming royalties, and working conditions were central, artificial intelligence (AI) rapidly became a major point of contention.

Studios were reportedly scanning background actors' faces and bodies for a single day's pay, seeking the right to indefinitely reuse their digital likenesses. SAG-AFTRA responded by demanding contractual language that ensured informed consent and fair compensation. The union’s stance was clear: "Performers must give informed consent and be compensated when their digital replicas are used."

The resulting contract enshrined these protections, marking a significant first. It also differentiated between "employment-based digital replicas" (created during a project) and "independently created replicas" (made outside a project), granting performers increased control over both.

Ongoing AI Policy Campaigns

The Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) continues its advocacy for AI regulation even after the strike, actively tracking bargaining progress in commercials, video games, and new media on its website. The union has also launched campaigns to oppose federal legislation that could preempt state-level AI regulation, arguing that such measures would "erode performers' protections."

Similarly, grassroots communities are expressing their concerns. On Reddit, voice actors fear being replaced by AI in non-player character (NPC) roles. As one commenter noted, "It's not just about stars–it's about the everyday working actors who'll vanish first," highlighting the widespread apprehension among performers.

Video Game Actors Lead the Way

In July 2025, after nearly 11 months of striking, SAG-AFTRA secured a landmark agreement with major video game studios. This historic deal showed that concrete, enforceable rules could address AI concerns, highlighting how quickly the issue has expanded beyond Hollywood into the gaming sector, which also relies heavily on human performance. The contract included significant pay raises and health protections, and crucially, it mandated written consent for AI replicas, required usage reports, and recognized performers' right to withdraw consent during future strikes. As voice actor Ashly Burch stated, "Without protections, we risk losing the next generation of talented performers."

Spectacle or Exploitation? The Sphere’s AI Wizard of Oz.

The recent AI-enhanced re-imagining of 1939's The Wizard of Oz at the Las Vegas Sphere showcased one of the most prominent uses of AI in live entertainment. This dazzling spectacle employed generative visuals and synthetic performers to revitalize characters like Dorothy, the Scarecrow, and the Wicked Witch in novel ways, stunning audiences with its visuals.

However, the show swiftly faced a backlash. Critics raised ethical questions, particularly concerning the resurrection of Judy Garland's likeness without her voice or physical presence, which some viewed as exploitation. Others debated whether beloved classics should be "remade" by algorithms or if living artists should reinterpret them.

The Oz controversy highlights the paradox of AI spectacle: the ability to create something doesn't mean it should be created. It also offers a glimpse into the industry's potential future, where AI could fuel a wave of nostalgia through "digital ghosts" performing indefinitely.

Ethical Fault Lines: Core Challenges

Integrating AI into film and television presents several ethical challenges, primarily centered on:

• Consent, Attribution, and Ownership: A core concern is the use of an actor's digital likeness without explicit consent. Industry unions are pushing for contracts that require approval, and there's a growing demand for clear attribution when AI generates scenes or voices, ensuring human contributions are credited.
• Labor Displacement and the "Invisible Middle": While prominent actors have the leverage to protect their interests, less established actors, background performers, and voice-over artists are vulnerable to being replaced by AI. This "invisible middle" of Hollywood's workforce faces the greatest risk of job displacement. As No Film School notes, "The Fear is that AI may displace screenwriters, actors, or VFX artists."
• Copyright and Training Data: Many AI tools are trained on extensive datasets derived from existing films, scripts, and performances. This practice has led to many lawsuits, with studios like Disney and Universal alleging "plagiarism at scale" against image generators such as MidJourney.
• Deep fakes and Audience Trust: Generative AI's ability to create hyper-realistic, fabricated scenes extends beyond entertainment, with potential implications for spreading misinformation, damaging reputations, or even being weaponized politically. For Hollywood, a critical question is whether audiences will continue to trust the authenticity of what they see on screen.

A Global Issue: Beyond Hollywood

The ethical challenges of AI in entertainment are a global concern, extending beyond Hollywood to various international markets:

• Bollywood: India's film industry is using AI for de-aging actors and multi-language dubbing. However, actors worry about losing control, similar to their U.S. counterparts, especially given weaker union protections in India.
• Anime & Dubbing: Japanese studios and international distributors are exploring AI for voice dubbing in anime. While this could speed up localization, many fans feel AI lacks the emotional depth of human voice actors and could jeopardize the livelihoods of many talented individuals.
• European Regulation: The EU's AI Act, enacted in 2024, is the first comprehensive AI law globally. It mandates transparency for high-risk applications, including those in media and culture. This positions Europe as a potential leader in regulating AI in entertainment, offering a model that the U.S. may or may not adopt.

These examples underscore that AI's impact is not confined to Hollywood; it represents a worldwide cultural transformation affecting all storytelling markets.

A Balanced Path Forward: Ethical Integration of AI

AI's integration into entertainment is inevitable; the goal is to ensure its responsible application.

Recommendations for Responsible AI Integration:

• Standardize AI Contract Language: Unions and studios should collaborate to create consistent contractual clauses. These clauses must mandate explicit consent, fair compensation, and proper attribution for all AI-related uses of creative work.
• Mandatory AI Disclosure: All projects must transparently label the use of AI in performances, voices, or writing. Transparency in AI applications is non-negotiable.
• Ensure Training Data Transparency: AI developers should openly publish their training datasets, allow creators to opt out of their work being used, and provide royalties when creators' work is incorporated.
• Implement Legal Safeguards: Legislation, such as the proposed No Fakes Act, is crucial to make unauthorized AI replicas illegal, reinforcing performers' rights and protections.
• Establish Baseline Protections for All Workers: Universal protections are necessary for all entertainment workers, including background actors and independent creators, not just prominent figures.
• Create Independent Oversight: An impartial industry body should audit AI usage, mediate disputes, and enforce these agreed-upon standards.

“Innovation will continue, but how it unfolds will be a matter of intense debate, negotiation, and strategic decision-making for years to come,”---Johns Hopkins Carey Analysis

Final Thoughts: Art, Ethics, and the AI Era

Hollywood has a long history of adopting new technologies. However, artificial intelligence (AI) presents a unique challenge: it doesn't merely assist in storytelling; it presumes to be the storyteller. The real threat isn't the eradication of creativity, but the displacement of the human creators behind it.

The good news is that collective efforts are proving effective. The 2023 strike, the 2025 video game agreement, and the public's negative reaction to projects like Tilly Norwood and the Sphere’s Wizard of Oz show that both workers and audiences still value human creativity. If AI is to remain a part of the industry, it must be on ethical terms.

Ultimately, storytelling transcends mere pixels and data. It embodies the essence of lived experience, the vulnerability of performance, and the profound connection between artist and audience. While AI can mimic this spark, it cannot genuinely live it. Safeguarding this fundamental truth is Hollywood's paramount challenge in the algorithmic age.

Sources

• Hollywood Reporter — “AI Actress Tilly Norwood Sparks Backlash”
• BBC — “Hollywood Divided Over AI Performers”
• Johns Hopkins Carey — “Navigating the Legal Frontier of AI in Hollywood”
• No Film School — “Ethical AI in Filmmaking”
• Bipartisan Policy Center — “Hollywood Strikes Back Against Generative AI”
• SAG-AFTRA — “Artificial Intelligence Resources and Policy Timeline”
• Reuters — “Video Game Actors Pass Agreement With Studios for AI Security”
• Wikipedia — “2023 SAG-AFTRA Strike” and “2024–2025 SAG-AFTRA Video Game Strike”
• GamesRadar — Ashly Burch interview on AI’s threat to voice acting
• Coverage of the Sphere’s Wizard of Oz AI-enhanced show (Las Vegas press, 2025)
• European Union — AI Act (2024) summary

What Do You Think?

Should Hollywood embrace AI remakes of classic films, or is it crucial to protect human creativity? Share your perspective in the comments below. Your input is vital in shaping the future of entertainment.