Industry

In brief

• A new BFI report reveals UK film workers fear job losses from AI, with entry-level positions most at risk and potential revenue declines of 21% over three years.
• The unauthorized use of copyrighted content to train AI models threatens the economic foundations of the UK’s £21 billion screen industry, which employs 200,000 people.
• Despite concerns, industry leaders see AI as amplifying creativity rather than replacing it, with 79 licensing deals already recorded and new frameworks being developed.

Growth in the use of generative AI is provoking fears of job losses and “obsolescence” among individuals working in the UK film and screen sector, according to a new report commissioned by the British Film Institute.

Authored by researchers at the multi-institutional CoSTAR Foresight Lab, the report is the first UK-wide review of the impact AI is having on the British screen industry. It also highlights opportunities, challenges and threats related to the use of AI.

While acknowledging how AI innovations provide “growth opportunities for the UK screen and creative technology sectors,” the research also concludes that the unauthorized use of copyrighted material for training new models “poses a direct threat to the economic foundations of the UK screen sector.”

According to the report, sources of training data include scripts from over 130,000 films, TV programs and YouTube videos, with such a mining of content undermining the ability of the UK screen industry to “create value” from making and selling new content.

“As generative models learn the structure and language of screen storytelling—from text, images and video—they can then replicate those structures and create new outputs at a fraction of the cost and expense of the original works,” the researchers write. “These learned capabilities can be used to assist human creatives, but AI tools may also be used to compete against the original creators whose work they were trained on.”

Accordingly, the report devotes considerable attention to the consequences of AI for job numbers in the British screen industry, which currently adds £21 billion per year to the UK’s GDP and employs around 200,000 people, encompassing movies, TV and video games

It cites recent studies which show that, internationally, audiovisual creators are at risk of seeing their revenues decline by 21% in the next three years as a result in the growth of AI-generated content, while it also discusses a CVL Economics report which estimated that AI could disrupt over 200,000 entertainment jobs in the U.S. by 2026.

The researchers suggest that junior and entry-level positions are especially at risk, since such jobs often comprise the kind of routine tasks at which AI currently excels.

Yet this poses a serious problem, the report suggests, since “if generative AI automates entry-level jobs and tasks, it will limit routes into the screen sector.”

Introducing AI to British studios

Companies focused on integrating AI into entertainment production processes are mindful of such dangers, although they also emphasize that the overall impact on the British and international screen sector will be positive.

This is the view of Phil McKenzie, the co-founder of British film production company Goldfinch, who tells Decrypt that AI will serve mostly to “amplify” human creativity, rather than replace it.

“On a macro level, entertainment will be impacted less than many many sectors,” he says. “On a micro level, AI offers enormous benefits, particularly for independent creators, despite the fear being amplified by legacy gatekeepers.”

Last month, Goldfinch signed a deal with Luxembourg-based Digital Genesis Fund to launch a $20 million investment vehicle, which will support Web3 and AI-focused entertainment studios.



And for McKenzie, this kind of venture will ultimately be a boost to the creative industries, providing tools that will “lower barriers for new talent” and reduce production costs.

“At Goldfinch, we’re building tools—including a new AI and Web3 app with Jordan Bayne and The Squad—to empower producers and creators to turn stories into modular, AI-enhanced, on-chain IP that’s ready for scalable licensing and cross-platform expansion,” he says.

McKenzie also expects that even supposedly at-risk roles will evolve to incorporate AI, while also suggesting that AI will bring about “a redistribution of value and opportunity”, rather than a decline.

And despite sounding several alarms in its report, the BFI also acknowledges that positive steps are already being taken to ensure that AI works for the industry as a whole.

“Our report found evidence that there is increasing activity in licensing deals, and a flow of activity and interest in creating the frameworks that would smooth the path for even more licensing in the creative industries,” says Rishi Coupland, the BFI’s Director of Research and Innovation, speaking to Decrypt.

Proliferation of licensing deals

As recent examples of progress, Coupland cites the forthcoming Copyright Licensing Agency generative AI licensing solution, research and development work by AI music firm DAACI on a copyright solution, and the work of licensing startup Human Native.

In fact, Coupland points out that the BFI’s report cites data from the Centre for Regulation of the Creative Economy, which has recorded 79 licensing deals over the past two year period.

There is therefore precedent for how creative sectors can adapt to the challenges and opportunities presented by AI, although Coupland also agrees with recent remarks from UK Culture Secretary Lisa Nandy, who suggested at a conference in London last week that legislation may be needed.

He explains, “She has also said that once the Data Bill is passed by Parliament, she and Peter Kyle will begin a series of roundtables with representatives from across the creative industries to develop legislation, with both houses of Parliament given time to consider it before they proceed.”

Edited by Stacy Elliott.

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