The glitz and glamour of Hollywood have long masked the cutthroat business side of the entertainment industry. But with recent negotiations over the use of artificial intelligence (AI) and digital replicas, the curtain has been pulled back. The tense contract talks between the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) and the Alliance of Motion Picture and Television Producers (AMPTP) provide a glimpse behind the scenes.
After a grueling six-month strike, the two sides reached a tentative deal in November 2023. But many of the 160,000 SAG-AFTRA members see the contract language regarding AI use as deliberately vague, leaving them worried about their careers.
Murky Rules on Digital Doubles Spark Outcry
The contract introduces new classifications like “Employment-Based Digital Replicas” (EBDRs) and “Independently-Created Digital Replicas” (ICDRs). In theory, it requires consent from Hollywood actors before studios can digitally scan and replicate them. But fine print provides concerning loopholes. For example, consent isn’t needed for EBDRs if the performance remains “substantially as scripted”—left up to the studios’ discretion.
“Our agents are not allowed in the room when we film our scenes, so how can we guarantee studios won’t take advantage without our consent down the road?” questioned 55-year-old character actor Jonah Rhodes.
The deal also grants studios extensive power to alter elements like facial movements and voice in post-production without notifying Hollywood actors. If violations occur, the contract states actors can’t compel studios to remove unauthorized content—only seek monetary damages through arbitration.
For ICDRs, there are no minimum compensation rates specified, meaning Hollywood actors must negotiate pay individually with studios. “They have us over a barrel. If we refuse consent outright, they’ll just find less scrupulous Hollywood actors who will say yes,” said up-and-coming actress Ava Sutherland.
Synthetic Human Replicas Stir Dread
Additionally, the contract allows studios to generate “Synthetic Performers” using AI, without resembling any particular Hollywood actor. SAG-AFTRA must have the opportunity to bargain before synthetic performers fully replace human actors, but the terms are vague.
“There are no guarantees studios won’t create virtual actors indistinguishable from real humans, putting thousands of actors out of work,” said Tom Hanks, weighing in on the issue.
Fears also abound that studios could use digital replicas unethically, like for unauthorized nudity or offensive portrayals. But according to SAG-AFTRA, actors have no recourse until laws specifically addressing digital likenesses exist.
“We have little control over how our scans are used once Pandora’s box is opened,” said actress Scarlett Johansson.
Murky Rules Leave Members Feeling Powerless
Many feel Drescher and Chief Negotiator Duncan Crabtree-Ireland essentially gave the green light for studios to use non-union actors.
“They sold us out,” said 58-year-old character actor Tony Danza. “Our union exists to protect members, but instead they bent over backward to accommodate the studios.”
Budget Slashing Means Lean Times in Hollywood
The AI contract comes as studios face mounting economic pressures. Analysts estimate the new SAG-AFTRA deal will cost studios $450-600 million per year. Studios are already making draconian budget cuts and canceling projects, even before production resumes from the strike.
Smaller production companies may suffer most from the new fiscal austerity. But some see opportunity for cheaper productions. Industry consolidation is expected as media giants reckon with the streaming era’s mounting pressure for profitability.
“The streaming bubble has burst, and we’re seeing a market correction,” said ABC entertainment president Channing Dungey. “Only the lean and mean will survive.”
Murky Terms Raise Suspicions of Ratification Vote
With the SAG-AFTRA ratification vote set for December 5, many members feel doubts without seeing the full contract text. But union leadership insists releasing the contract before ratification is not typical procedure.
“We’re in uncharted waters with AI technology,” said Crabtree-Ireland. “This deal provides guardrails where we had none before.”
But others balk at voting on a complex deal governing sensitive technology impacting their future livelihoods.
“We shouldn’t have to just trust that leadership knows best,” said Lesley Ann Warren, a 75-year-old actress. “Our careers are on the line.”
As the vote nears, Hollywood holds its breath, knowing the coming AI era will permanently alter the entertainment landscape. For better or worse, the industry stands at the threshold of an unknown frontier.
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