Animation industry divided on AI as creators fear job loss, reports entertainment data provider Luminate

A new report from Luminate, an entertainment data provider, reveals that generative AI has become a “divisive” topic within the animation industry, with creators and studios split on how to integrate AI-powered tools into production workflows. The findings underscore the growing tension between AI’s potential to accelerate production and reduce costs versus concerns about creative integrity, job security, and ethical implications.

Why this matters: Animation has emerged as a crucial content category for streaming platforms, with anime fans proving to be among the most engaged audiences across multiple platforms.

• Netflix’s “KPop Demon Hunters” recently became the most-streamed original movie in the platform’s history, highlighting animation’s commercial value.
• According to Luminate’s U.S. Entertainment 365 survey, 29% of anime film audiences have seen three or more anime movies in theaters within the last three months, making them the most frequent moviegoers compared to other film genres.
• Animated content drives significant streaming engagement, with Netflix accounting for 76% of users who watch animated content on the platform.

The divide over AI: The animation industry remains split between proponents who view generative AI as revolutionary technology and critics who see it as problematic.

• Supporters argue that AI can accelerate production timelines and reduce operational costs, making animation more accessible and efficient.
• Traditional artists and critics regard generative AI as “dirty” technology, raising concerns about data scraping, intellectual property rights, loss of creative control, and ethical boundaries.
• Job security concerns contribute significantly to the resistance, with many fearing AI could displace human creativity and craftsmanship.

Who’s most at risk: Luminate identifies specific roles within the animation pipeline as particularly vulnerable to AI disruption over the next two years.

• Concept and storyboard artists face potential displacement as AI tools become more sophisticated at generating visual ideas and narrative frameworks.
• VFX artists and game developers are also perceived as among the most impacted roles, as AI increasingly handles technical aspects of visual production.

The bottom line: The animation industry’s struggle with AI integration reflects broader tensions across creative industries as studios balance technological innovation with preserving artistic integrity and protecting creative jobs.