I can speak to how it's reshaping budgets. I would say at this point it is still nascent.
As I mentioned before, it's really the tools that producers are using. It can help us with scene optimization and with pre-visualization. There are a number of different tools that producers can use.
Say you want to create a special effect. You can choose to do it with in-camera effects, à la Tom Cruise in Mission: Impossible. You have real, live and in camera and that's a creative choice you can make.
You can choose to use volume production, which is like a curved wall with thousands of LED screens that can cheat a location for you, which can save you money and time in not going overseas, or you can choose to use some AI tools to create those in visual effects. All of these are opportunities for producers to take what they want to achieve creatively and use tools that are available to them to do it with the maximum efficiency.
That's how I think it's impacting budgets and financing.
In terms of contractual relationships, a couple of years ago when this was becoming a thing, we commissioned a law firm to do a study on what producers need to consider in terms of the legalities of what they're doing. One of the things we asked producers to consider was whether their contracts with distributors and broadcasters even allow them to use AI because everybody in production has to pass E and O. Everybody knows that they have to do this. It has to be cleared, through chain of title—everything has to be cleared. That's something we asked producers to consider.
They also have to look at, if they are engaging with an AI technology, whether they own their prompts or if those prompts are being turned over to those platforms and therefore their work has been scraped again.
These are all things that producers have to consider when it comes to contracts, budgets and financing.
