During Paramount Skydance’s most recent earnings call, chief executive David Ellison argued that artificial intelligence could surpass the impact of computer-generated imagery on filmmaking. He described AI as potentially the greatest creative breakthrough since the early-1990s introduction of CGI and digital compositing, which enabled blockbusters such as Jurassic Park and Terminator 2. Ellison suggested that the industry’s future may be defined by AI’s capacity to unlock new storytelling possibilities.
Ellison cited the original Terminator film, noting its production cost of roughly four million dollars, and contrasted it with contemporary estimates of sixty to seventy million dollars for a shot-for-shot remake. He argued that AI tools could compress such budget gaps, allowing studios to pursue higher-risk projects without prohibitive expense. The executive implied that more affordable production could foster original narratives that might otherwise be shelved.
According to Ellison, AI will markedly alter Paramount Skydance’s operations, and the studio is already building proprietary AI applications. He claimed these systems will simplify content creation, accelerate project timelines across the company, and fundamentally change workflow practices. The CEO emphasized that such efficiencies are expected to enhance the overall value of the studio’s intellectual property and live-event offerings rather than diminish them.
Ellison stressed that AI’s influence will actually increase the premium attached to high-quality intellectual property and live experiences. He argued while AI can streamline production, it does not erode the market’s appetite for meticulously crafted stories. In his view, the combination of advanced tools and premium content will create a stronger economic incentive for studios to invest in distinctive franchises.
Finally, Ellison warned that a flood of low-quality AI-generated material could create a market segment he termed ‘AI slop,’ yet he believes authentic, hand-crafted storytelling will retain a distinct premium. He reiterated that artificial intelligence should be viewed as an artist’s instrument, not a substitute for human creativity, and that the studio will continue to prioritize human talent in its productions.