AI's Impact on UK Film Industry: Opportunities and Challenges

AI plundering scripts poses 'direct threat' to UK screen sector, says BFI

Film institute's report raises fears AI will eliminate junior roles in film, TV, video game and special effects industries Artificial intelligence companies are plundering 130,000 film and TV scripts to train their models in a raid on copyrighted material that poses a "direct threat" to the future of the UK screen sector, according to the British Film Institute. In a wide-ranging report analysing the benefits and threats posed by AI to the UK's film, TV, video game and visual special effects industries, the BFI also raises fears that automation will eliminate the entry-level jobs that bring in the next generation of workers. It says the "primary issue" facing the £125bn industry is the use of intellectual property (IP) to train generative AI models without payment to, or permission from, rights holders. The UK creative industries want to see an "opt-in" regime, forcing AI companies to seek permission and strike licensing deals before they can use content, and the government is currently in the process of considering what legislation to put in place. "AI offers significant opportunities for the screen sector such as speeding up production workflows, democratising content creation and empowering new voices," said Rishi Coupland, director of research and innovation at the BFI. "However, it could also erode traditional business models, displace skilled workers, and undermine public trust in screen content." While the report acknowledges the technological benefits of AI - such as being able to de-age actors and improving the authenticity of accents, as was used controversially in Adrien Brody's Oscar-winning film The Brutalist - it also cites fears of job losses. Tasks such as writing, translation and some technical visual effects and character animation can now be automated, "prompting fears of obsolescence among professionals" amid concerns that AI could take over the jobs once done by the sector's youngest workers. "AI's ability to automate tasks raises fears of job losses, particularly for junior or entry-level positions," the report says. "Training and upskilling are seen as essential to prepare the workforce for AI integration." However, the report, published in partnership with Goldsmiths, Loughborough and Edinburgh universities, warns of a "critical shortfall" in AI training provision. "AI education in the UK screen sector is currently more 'informal' than 'formal'," the report says. "And many workers - particularly freelancers - lack access to resources that would support them to develop skills complementary to AI." More than 13,000 creative technology companies are based in the UK, including more than 4,000 businesses focused on applying emerging technologies across film, games and other creative subsectors. London is the world's second largest hub after Mumbai for visual effects professionals globally, home to leading businesses including Framestore, whose credits include Avengers: Endgame and the BBC's adaptation of His Dark Materials. The report also acknowledges that AI is likely to significantly benefit the industry by lowering barriers for creators "regardless of budget or experience". "This could empower a new wave of British creators to produce high-quality content with modest resources," it says. The 45-page report makes nine recommendations including establishing a market for IP licensing and training, the development of "market-preferred, culturally inclusive AI tools" and more investment in the sector and skills training. The report was also produced in conjunction with the CoStar Foresight Lab, the £75.6m national network of laboratories that is developing new technology for the industry. "AI offers powerful tools to enhance creativity, efficiency, and competitiveness across every stage of the production workflow," said Jonny Freeman, director of CoStar. "From script development and pre-production planning, through on-set production, to post-production and distribution. However, it also raises urgent questions around skills, workforce adaptation, ethics and sector sustainability." Last week, the BBC director general and the boss of Sky criticised proposals to let tech firms use copyright-protected work without permission, while Lisa Nandy, the culture secretary, tried to reassure the creative industry that it would not be harmed by future AI legislation. "We approach you with no preferred option in mind," she said, delivering a keynote speech at the Deloitte Enders conference. "We are a Labour government, and the principle [that] people must be paid for their work is foundational. You have our word that if it doesn't work for the creative industries, it will not work for us."

AI Companies Used 130,000 Film and TV Scripts to Train Generative Models

A new report says that AI companies have plundered over 130,000 films and TV shows without permission to train generative AI models. The British Film Institute (BFI) published the findings in a wide-ranging report that explores the opportunities and risks AI presents to the film, television, video game, and visual effects industries. The AI in the Screen Sector: Perspectives and Paths Forward report warns that the technology "poses a threat to the fundamental economics of the screen sector" and that copyright is "the dominant concern around AI today." The BFI warns that the biggest challenge facing the film industry is the use of intellectual property to train generative AI models without compensating or seeking permission from rights holders -- resulting in over 130,000 film and TV scripts being used in training. "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 report states, according to Deadline. "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." The report also raises concerns that AI could wipe out entry-level roles, which are essential for bringing new talent into the film and TV industries. In a statement, the BFI notes that while AI is already part of the filmmaking process -- such as in the post-production of The Brutalist -- the rapid rise of generative AI represents a critical turning point, and urgent strategic action is needed. "AI has long been an established part of the screen sector's creative toolkit, most recently seen in the post-production of the Oscar-winning The Brutalist, and its rapid advancement is attracting multi-million investments in technology innovator applications," the BFI's Director of Research & Innovation Rishi Coupland tells Variety. "However, our report comes at a critical time and shows how generative AI presents an inflection point for the sector and, as a sector, we need to act quickly on a number of key strategic fronts." The BFI's findings come as the UK government reportedly considers legislation that would either require copyright holders to opt out of having their material

AI Sparks Fear and 'Obsolescence' Among UK Film Industry - Decrypt

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."

BFI report claims 130,000 scripts have been used to train AI models

AI is in a bit of a Wild West phase right now. As many people are still getting used to the existence of the technology and the capabilities of it, legislation is behind the growing trend of AI models. This means that a lot of models are freely using copyrighted content to learn and grow. A new bit of research from the British Film Institute (BFI) claims that more than 130,000 scripts have been used to train AI models. Via Deadline, the report claims that the use of copyrighted content by AI is the "dominant concern" around the technology. "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," reads the report. "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." UK legislators are currently considering an option for copyright holders to opt out of their content being used for AI training purposes. But, there are fears that the UK government is doing too little, too late to save the country's film industry.

BFI Report Sets Out 9 Recommendations to Ensure "Ethical, Sustainable, Inclusive AI" Use

New Lena Dunham, Sarah Snook Shows Touted as Universal U.K. TV Labels Execs Talk Sector Cuts A new report published on Monday by the British Film Institute (BFI) sets out nine recommendations for the U.K. screen sector to ensure that artificial intelligence will be a boon rather than bane for film and TV. "AI in the Screen Sector: Perspectives and Paths Forward" analyzes current usage and experimentation with "rapidly evolving generative artificial intelligence (AI) technologies," the BFI said. "To ensure that the U.K. remains a global leader in screen production and creative innovation, the report sets out a roadmap of key recommendations to support the delivery of ethical, sustainable, and inclusive AI integration across the sector." The goal is for the U.K. to "capitalize on its creative strengths, enabling independent companies to scale up and compete globally," it highlighted. The report noted that the adoption of generative AI within the U.K. screen sector "raises significant legal, ethical, and practical challenges that need to be addressed to ensure sustainable and equitable integration." The primary issue it highlighted is "the use of copyrighted material - including more than 100,000 film and TV scripts - in the training of generative AI models, without payment or the permission of rightsholders." This practice "threatens the fundamental economics of the screen sector if it devalues intellectual property creation and squeezes out original creators," the report emphasized. "Other issues include safeguarding human creative control, the fear of job losses through replacement and investment for training in new skills, high energy consumption and carbon emissions, and risks to creative content around biased data." The report was published by the BFI as part of its role within the CoStar Foresight Lab, the U.K.'s creative R&D network. "Generative AI promises to democratize and revolutionize screen content creation," the BFI said in highlighting key opportunities. "Projects such as the Charismatic consortium, backed by Channel 4 and Aardman Animations, aim to make AI tools accessible to creators regardless of budget or experience. This could empower a new wave of British creators to produce high-quality content with modest resources, though concerns about copyright and ethical use remain significant barriers to full adoption. The BBC is piloting structured AI initiatives. The BFI National Archive and the BBFC are experimenting with AI for subtitling, metadata generation, and content classification, enhancing accessibility and operational efficiency." The report also concluded that the U.K.'s "strong foundation in creative technology - home to over 13,000 creative technology companies - means that the U.K. screen sector is well-positioned to adapt to this technological shift." It cited the likes of AI-enhanced dubbing and visual effects, interactive storytelling and automated content classification as areas of opportunity. The report "navigates the complex landscape of AI in the screen sector by carefully weighing both its transformative opportunities and the significant challenges it presents," said Professor Jonny Freeman, director of CoStar Foresight Lab. "The report acknowledges that while AI offers powerful tools to enhance creativity, efficiency, and competitiveness across every stage of the production workflow -- from script development and pre-production planning, through on-set production, to post-production and distribution -- it also raises urgent questions around skills, workforce adaptation, ethics, and sector sustainability." The publication comes at a time of much debate about genAI across Hollywood and beyond. "AI has long been an established part of the screen sector's creative toolkit, most recently seen in the post-production of the Oscar-winning The Brutalist (to enhance the authenticity of accents), and its rapid advancement is attracting multi-million investments in technology innovator applications," said Rishi Coupland, the BFI's director of research & innovation. "However, our report comes at a critical time and shows how generative AI presents an inflection point for the sector and, as a sector, we need to act quickly on a number of key strategic fronts." He added: "Whilst it offers significant opportunities for the screen sector such as speeding up production workflows, democratising content creation and empowering new voices, it could also erode traditional business models, displace skilled workers, and undermine public trust in screen content. The report's recommendations provide a roadmap to how we can ensure that the U.K.'s world-leading film, TV, video games and VFX industries continue to thrive by making best use of AI technologies to bring their creativity, innovations and storytelling to screens around the globe." Here is a closer look at the nine recommendations in the BFI's AI report. Recommendation 1 Rights: Set the U.K. in a position as a world-leading IP licensing market. "There is an urgent need to address copyright concerns surrounding generative AI. The current training paradigm - where AI models are developed using copyrighted material without permission - poses a direct threat to the economic foundations of the U.K. screen sector," highlights the BFI report. "A viable path forward is through licensing frameworks: 79 licensing deals for AI training were signed globally between March 2023 and February 2025; the U.K.'s Copyright Licensing Agency is developing a generative AI training license to facilitate market-based solutions; and companies such as Human Native are enabling deals between rightsholders and AI developers." Concluded the report: "The U.K. is well-positioned to lead in this space, thanks to its 'gold standard' copyright regime, a vibrant creative technology ecosystem, and a coalition of creative organizations advocating for fair licensing practices." Recommendation 2 Carbon: Embed data-driven guidelines to minimize carbon impact of AI. GenAI models require significant computational resources, resulting in high energy consumption and associated carbon emissions. "Yet the environmental footprint of AI is often obscured from end users in the creative industries," notes the BFI report. "Transparency is a critical first step to addressing AI's environmental impact. U.K.-based organisations such as Blue Zoo are already choosing to run AI models on infrastructure where energy sources and consumption are fully visible." Recommendation 3 Responsible AI: Support cross-discipline collaboration to deliver market-preferred, ethical AI products. "Generative AI tools must align with both industry needs and public values," emphasizes the BFI. "Many models, tools and platforms have been developed without sufficient input from the screen sector (or, indeed, screen audiences), leading to functionality and outputs that are poorly suited to production workflows or that risk cultural homogenization and ethical oversights. (Use of large-language models trained predominantly on U.S. data may marginalize local narratives, for example.) Academics have called for 'inclusive' approaches to AI development, arguing that generative AI's full potential can only be reached if creative professionals participate in its development." Recommendation 4 Insight: Enable U.K. creative industry strategies through world-class intelligence. The U.K. has more than 13,000 creative technology companies and a strong foundation in both AI research and creative production, according to Monday's report. However, it also highlighted a lack of access to structured intelligence on AI trends, risks, and opportunities. "This absence of shared infrastructure for horizon scanning, knowledge exchange, and alignment limits the sector's ability to respond cohesively to disruption," it concluded. Recommendation 5 Skills: Develop the sector to build skills complementary to AI. "AI automation may, in time, lower demand for certain digital content creation skills. It may also create new opportunities for roles that require human oversight, creative direction, and technical fluency in AI systems," the BFI mentions. "Our research identifies a critical shortfall in AI training provision: AI education in the U.K. screen sector is currently more 'informal' than 'formal', and many workers - particularly freelancers - lack access to resources that would support them to develop skills complementary to AI. However, the U.K. is well-positioned to lead in AI upskilling due to its strong base of AI research institutions, a globally respected creative workforce, and a blending of technology and storytelling expertise." Recommendation 6 Public transparency: Drive increased public understanding of AI use in screen content. "Surveys reveal that 86 percent of British respondents support clear disclosures when AI is used in media production, and this demand for transparency is echoed by screen sector stakeholders, who call for standards on content provenance and authenticity to counter the rise of AI-generated misinformation and 'slop'," the BFI report says. "National institutions such as the BBC are already experimenting with fine-tuning AI models to reflect their editorial standards, and the BFI is deploying AI in archival work with a focus on ethical and transparent practices." Recommendation 7 Sector adaptation: Boost the U.K.'s strong digital content production sector to adapt and grow. "The U.K. boasts a unique convergence of creative excellence and technological innovation, with a track record of integrating emerging technologies into film, TV, and video game production," according to the BFI. "London is the world's second-largest hub (after Mumbai) for VFX professionals. Generative AI is already being used across the U.K. screen sector to drive efficiencies, stimulate creativity, and open new storytelling possibilities - from AI-assisted animation (Where the Robots Grow) and visual dubbing (Flawless) to reactive stories and dialogue (Dead Meat). However, surveys identify a lack of AI training and funding opportunities, while parliamentary committees point to fragmented infrastructure and an absence of industry-wide standards that could hinder the continued growth and development of AI-supported creative innovation." Recommendation 8 Investment: Unlock investment to propel the U.K.'s high-potential creative technology sector. "There is a compelling opportunity and a pressing need for targeted financial support for the U.K.'s creative technology sector," notes the BFI. "The U.K. is home to global creative technology leaders, including Framestore and Disguise, as well as AI startups. such as Synthesia and Stability. However, the House of Lords has identified a 'technology scaleup problem' in the U.K., with limited access to growth capital, poor infrastructure, and a culture of risk aversion acting as barriers to expansion." The report also highlights that "physical infrastructure is needed." Recommendation 9 Independent creation: Empower U.K. creatives to develop AI-supported independent creativity. "Generative AI is lowering traditional barriers to entry in the U.K. screen sector - enabling individuals and small teams to realize ambitious creative visions without the need for large budgets or studio backing," notes the report. "UK-based director Tom Paton describes how AI breaks down barriers that have 'kept so many creators on the sidelines,' while the Charismatic consortium, backed by Channel 4 and Aardman Animations, sees the potential of AI 'to support creators disadvantaged through lack of access to funds or the industry to compete with better funded organizations'." Concludes the BFI: "By investing in accessible tools, training, and funding for independent creators, and developing market-preferred, ethical AI products, the U.K. can foster a more inclusive and dynamic creative economy where AI enhances, rather than replaces, human imagination."