Indian film industry slashes costs 80% with AI, outpacing Hollywood's cautious approach

Indian Film Industry Adopts AI at Unprecedented Scale

The Indian film industry is undergoing a dramatic transformation as studios deploy AI at a scale unseen elsewhere in global cinema. India, which produces the most movies of any country, is using artificial intelligence tools to create full-fledged AI-generated films, implement AI dubbing for multi-language dubbing releases, and even recut endings of older titles to generate additional revenue1

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. This shift comes as the industry grapples with changing audience habits and financial pressures, with moviegoers declining from 1.03 billion in 2019 to 832 million in 2025, according to consulting firm Ormax Media2

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The Collective Artists Network, a top talent agency for Bollywood A-listers, exemplifies this pivot. At its Bengaluru premises, filmmakers use AI to create mythological content based on Hindu epics like Ramayana and Mahabharat3

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. One production features the god Hanuman flying while carrying a mountain, while another depicts the princess Gandhari, who blindfolded herself upon marrying a blind king1

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AI Filmmaking Promises to Reduce Production Costs Dramatically

"AI is slashing production costs to one-fifth of what they used to be for traditional filmmaking in genres such as mythology and fantasy," said Rahul Regulapati, who heads Collective's AI studio, known as Galleri52

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. Production time has been compressed to just a quarter of traditional timelines, fundamentally reshaping the economics of filmmaking1

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This economic transformation is attracting major investments. Vikram Malhotra, founder of Abundantia Entertainment, revealed that the Bollywood production house recently announced investment in an $11 million AI studio and expects content generated or assisted by AI to account for one-third of its revenue within three years2

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. Tech giants including Google, Microsoft, and Nvidia have made early bets by partnering with local filmmakers1

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Speed Up Filmmaking While Hollywood Faces Union Constraints

The approach differs sharply from Hollywood, where union contracts and fears of job displacement have constrained studios' use of the technology2

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. While American and British studios have experimented with AI filmmaking, producing the first full-length AI animated features in 2024, the ambitions of India's filmmakers operate on a different level. "If they can deliver, then the shift in AI filmmaking will be to India," said Dominic Lees, a film and AI researcher at Britain's University of Reading1

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At least one major production house is reviewing its entire library for AI re-releases2

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. Last year, India's Eros Media World re-released a 2013 hit, "Raanjhanaa," with altering film endings that replaced a tragic finale with a happier one1

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Audience Reactions Challenge Creative Authenticity

Despite commercial success, the technology faces questions about creative authenticity. Lead actor Dhanush criticized the AI remake of "Raanjhanaa," stating it had "stripped the film of its very soul" and set a "deeply concerning precedent for both art and artists"2

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. Studios are pitting AI-driven efficiency against a recurring problem: audiences have often reviewed AI content harshly, even when it sells1

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Yet the re-release drew audiences. India's largest cinema chain, PVR Inox, reported that 35% of available tickets to the Tamil-language version were sold during its August release month2

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. AI could boost Indian media and entertainment firms' revenue by 10% and reduce costs by 15% over the medium term, according to analysis by consulting firm EY1

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. Despite box-office sales hitting a record $1.4 billion last year, revenue has been choppy since the pandemic, making cost efficiency critical for studios navigating streaming competition and changing viewer preferences2

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