AI Swallowing Hollywood: How GPT-5, Tilly Norwood, and OpenAI's 'Critters' Are Changing 'Employment' and the 'IP War'
Hollywood is now beginning to collide head-on with AI.
The 'fear of AI' that erupted during the strikes has suddenly turned into a real-world risk with the arrival of GPT-5, OpenAI's feature-length animation 'Critters,' and the buzz surrounding the AI-generated actress 'Tilly Norwood'.
Janice Min, CEO of The Ankler, describes this situation with a bitter tone, saying, 'Hollywood is always fighting yesterday's AI.' In this article, we will use that statement as a starting point to organize the future landscape of AI in Hollywood.
1. The Era of 'Experience Over Quality' Reflected by 'Zootopia 2'
The conversation begins with an unexpected topic: the fact that Disney's 'Zootopia 2' scored a 'surprise blockbuster' hit with $550 million, the 4th highest opening in global box office history.
The strength of the overseas box office, particularly in China, has reset the trend that has been described for the past few years as 'international box office is on a downward slope.' While 'critically acclaimed' films aimed at awards season consistently flop in terms of revenue, large-scale animated films that families can enjoy are mobilizing audiences around the world.
Janice sarcastically summarizes this gap as follows.
'Hollywood is obsessed with awards and buzz, but the audience is just coming to the theater looking for a good time.'
In the flood of content in the AI era, 'an easy-to-understand, immediately enjoyable experience' wins over 'high quality'—the success of 'Zootopia 2' symbolizes that reality.
2. The 'Writer's Room' and the Career Ladder Being Rewritten by GPT-5
2-1. The 'Invisible Layoffs' Continuing After the Strike
In recent writer and actor strikes, AI became the biggest point of contention.
Now that an agreement has been reached, the unemployment rate in Los Angeles remains 30% higher than the national average, and Janice points out that on the ground,'anticipatory layoffs using AI as an excuse'are progressing.
Warner Bros. Discovery, which is carrying massive debt
Netflix, which continues to produce in bulk
Studios like these are moving up personnel reductions with the expectation that 'AI should be able to lower costs.' More than AI itself, it is 'cost-cutting using AI as a reason' that is eroding employment for the middle class.
2-2. GPT-5: 'Everyone is using it, but no one talks about it'
Another major change is the penetration of GPT-5.
'The phrase "run this through GPT-5 once" is flying around town.'
First drafts of scripts, 'world-building bibles' for series, setting notes... much of the work that used to be handled by assistants and young staff is being replaced by GPT-5.
What is being cut here is not just menial work.
entering the room as a writer's assistant
Learning structural skills through note-taking and revisions
and stepping up to become a screenwriter from there
—this is the very essence of the 'farm system'.
Top creators might actually be able to make AI their ally, but the 'newcomers who were supposed to blossom in the next decade' will no longer be able to even get a foot in the door—this is where Janis's sense of crisis lies.
3. Tilly Norwood and Sora 2: The Shock of the 'Synthetic Star'
The emergence of the AI actress 'Tilly Norwood' was a psychological turning point for Hollywood.
A completely human-like appearance
crafted down to freckles and nuanced facial expressions
and flexibly responding to lines and directions
When Janis interviewed creators, she even heard stories that 'agents are eager to sign her'.
Immediately following this frenzy, OpenAI's video generation model 'Sora 2' was released.
'High-quality fakes' reminiscent of famous actors' faces or the texture of existing films are being created one after another using only text and audio prompts—.
'IP is the very value of Hollywood. The feeling that that IP is being 'sucked up without permission' has reached the level of an ethical issue.'
While AI-like technologies have long been used in VFX production, no one yet has the answer to where the line should be drawn between what is acceptable and what constitutes 'theft'.
4. Democratization or 'Slop': The Duality of Creator Culture and AI
The Sam Altman-style argument in defense of AI goes like this.
'It is the democratization of creativity. Anyone can create high-quality video.'
Janis does not deny that aspect either. For Gen Z, who grew up on YouTube and TikTok,
'creator-led content' is the main battlefield rather than movies or television
and YouTube's Neal Mohan is promoting the use of Gemini by creators
The Patreon CEO predicts that 'Meta will also go all-in on AI, further diluting the value of existing creators'
is the underlying structure.
However, democratization also leads to the mass production of 'slop' (low-quality content).
'Many viewers might not even care about whether it's high quality or not in the first place'
This is the scariest point for Hollywood.
In a world where AI provides an infinite supply of 'decent-looking, easily enjoyable videos,' we must rethink the reason for the existence of 'films that take time and cost money.'
5. Silicon Valley vs. Hollywood: The Final War for IP
The corporate value of AI companies has already easily surpassed that of media companies by orders of magnitude.
OpenAI: Market capitalization of around $500 billion
Warner Bros. Discovery: About one-tenth of that
'Who will buy up the IP and win through legal persistence' is being decided almost entirely by the difference in capital power.
Janice believes that 'Warner's for sale sign will eventually turn toward AI companies as well.'
The power of the platform side is also only growing stronger.
In the Disney vs. YouTube TV distribution dispute, it ultimately ended with 'Disney backing down.'
Actors and creators seek 'places where their work can reach people'
Advertisers also only spend money where 'the viewers are'
As a result, the bargaining power of companies that control 'distribution infrastructure' is increasing more than that of IP holders.
If this dynamic continues, the scenario of 'AI companies buying up Hollywood IP in bulk' can no longer be called a fantasy.
6. Is there still a need for human stories?
AI can only learn from past data.
Hollywood is already dependent on sequels, universes, and remakes, and AI will likely accelerate that trend even further.
What Janice is truly worried about is the shrinking space for 'human stories.'
'The movie that changed your life wasn't Spider-Man 5, was it?'
Everyone watches the same movie and shares the same experience
Conversations are born from the work, and values are shaken
Such "places for stories that connect people" are shrinking.
On the other hand, she also states the following at the end.
"Top creators will surpass AI. Ultimately, it is only a very small number of people who will run at the forefront of culture while mastering AI."
In other words, AI may not only destroy Hollywood but also become a device that more cruelly separates the "top few percent of talent" from "the rest."
The battle between AI and Hollywood is not "technology vs. tradition," but rather
who holds the IP and the platform
how much to automate, and what to protect as human work
a highly political and economic game. In that context, "what works we choose and how we spend our time" as viewers will also become a vote that shapes Hollywood in the AI era.