SAG-AFTRA Pushes 'Tilly Tax' to Make AI Film Characters Cost as Much as Real Actors
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Actors Union Is Bargaining for 'Tilly Tax' On AI Film Characters
As adoption of artificial intelligence in the US outpaces efforts to regulate it, organized labor is providing an important check on how the technology gets used, according to the head of the Hollywood actors' union. "Collective bargaining has been the fastest and most effective way for the regulation of AI technology," SAG-AFTRA Executive Director Duncan Crabtree-Ireland said Thursday at an AFL-CIO workers' summit in Washington. AI usage is a key issue in SAG-AFTRA's ongoing negotiations of a new contract with Hollywood studios. The existing agreement expires in June. Crabtree-Ireland said the union is focused on limiting the use of AI performers, including digital replicas of human actors and "synthetic" characters that do not correspond to real people. A so-called "Tilly tax" -- named for controversial AI actress Tilly Norwood -- would levy a fee on "synthetic" performers to make using them cost as much as using real actors. "We've got to make sure the economic incentives drive work for humans," Crabtree-Ireland said. SAG-AFTRA secured several AI-related protections for its members, including requirements that studios obtain informed consent and provide fair compensation for the use of digital replicas, after a 2023 strike that ground Hollywood to a halt for nearly four months. Crabtree-Ireland also called on Congress to pass the bipartisan NO FAKES Act, which would give people ownership over their own voice and likeness to protect them from unauthorized, AI-generated replicas known as deepfakes.
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Actors union is bargaining for 'Tilly tax' on AI film characters | Fortune
"Collective bargaining has been the fastest and most effective way for the regulation of AI technology," SAG-AFTRA Executive Director Duncan Crabtree-Ireland said Thursday at an AFL-CIO workers' summit in Washington. AI usage is a key issue in SAG-AFTRA's ongoing negotiations of a new contract with Hollywood studios. The existing agreement expires in June. Crabtree-Ireland said the union is focused on limiting the use of AI performers, including digital replicas of human actors and "synthetic" characters that do not correspond to real people. A so-called "Tilly tax" -- named for controversial AI actress Tilly Norwood -- would levy a fee on "synthetic" performers to make using them cost as much as using real actors. "We've got to make sure the economic incentives drive work for humans," Crabtree-Ireland said. SAG-AFTRA secured several AI-related protections for its members, including requirements that studios obtain informed consent and provide fair compensation for the use of digital replicas, after a 2023 strike that ground Hollywood to a halt for nearly four months. Crabtree-Ireland also called on Congress to pass the bipartisan NO FAKES Act, which would give people ownership over their own voice and likeness to protect them from unauthorized, AI-generated replicas known as deepfakes.
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Hollywood's actors union is negotiating a groundbreaking 'Tilly Tax' on synthetic AI performers to protect human jobs. SAG-AFTRA's contract talks aim to ensure AI film characters cost studios as much as hiring real actors, using collective bargaining to regulate AI technology faster than Congress.
SAG-AFTRA Leads AI Regulation Through Collective Bargaining
As the United States struggles to keep pace with artificial intelligence adoption through legislative measures, SAG-AFTRA is demonstrating that collective bargaining may be the most effective path forward for regulating AI technology in Hollywood. Duncan Crabtree-Ireland, the union's executive director, made this case clear at an AFL-CIO workers' summit in Washington on Thursday, stating that "collective bargaining has been the fastest and most effective way for the regulation of AI technology"
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. This assertion comes as the actors union enters critical contract negotiations with Hollywood studios, with their current agreement set to expire in June2
.The Tilly Tax Aims to Level Economic Incentives for Human Actors
At the heart of SAG-AFTRA's current negotiations is the proposed Tilly Tax, a fee structure named after controversial AI actress Tilly Norwood that would fundamentally reshape how studios approach AI usage in film. The tax would levy fees on synthetic AI performers—characters that do not correspond to real people—making them cost as much as hiring actual human actors
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. Crabtree-Ireland emphasized the economic logic behind this approach: "We've got to make sure the economic incentives drive work for humans"2
. The union is focused on limiting the use of AI performers broadly, including both digital replicas of human actors and entirely synthetic characters that exist only as artificial creations1
.AI-Related Protections Built on 2023 Strike Victory
Source: Fortune
SAG-AFTRA's current bargaining position builds on significant AI-related protections the labor union secured after a 2023 strike that halted Hollywood production for nearly four months. Those hard-won protections include requirements that studios obtain informed consent from actors and provide fair compensation for the use of digital replicas
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. The proposed Tilly Tax represents an evolution of this strategy, moving beyond protecting existing actors' voice and likeness to address the broader challenge of entirely synthetic AI performers that could displace human workers altogether. This approach to regulating AI technology in Hollywood tackles not just unauthorized AI replicas but the fundamental question of whether AI film characters should replace human performers on economic grounds alone.Related Stories
Federal Legislation Lags Behind Union Action
While SAG-AFTRA pursues immediate protections through contract negotiations, Crabtree-Ireland also called on Congress to pass the bipartisan NO FAKES Act, which would grant people ownership over their own voice and likeness to protect them from unauthorized, AI-generated replicas known as deepfakes
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. The union's dual approach—securing protections through collective bargaining while advocating for legislative safeguards—reflects a pragmatic recognition that AI regulation at the federal level moves slowly compared to the rapid pace of technological change. The June contract deadline will test whether studios accept the Tilly Tax framework or whether the industry faces another potential work stoppage over AI usage in film. If successful, SAG-AFTRA's model could influence how other industries approach regulating AI technology, demonstrating that organized labor can establish guardrails where lawmakers have struggled to act.References
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