Animation : Why AI "Art" is Not as Much of a Crisis as You Think by Joshua Young

AI is definitely taking jobs in the animation industry.

"Major IP holders and brands need clean rights. They need to merchandise, license, and defend without surprises. If a tool’s training corpus is contested, or its terms claim broad reuse rights over your inputs and outputs, that raises red flags for high stakes productions and campaigns. Studios will not risk nine figure assets on ambiguous ownership. Streamers will not accept unclear provenance for originals. Brands will not anchor a global campaign to assets that create legal uncertainty.

That's one of the biggest challenges I think people and companies who use AI are facing/will face, Joshua Young.

: It's an excuse by companies to do what they've been already doing for years. Agreed!

AI was used in the recent Coca-Cola commercial, but it’s important to keep that in perspective. Outside of experimental ads, AI is nowhere near replacing traditional production for television or feature films. That Coke spot reportedly required over 70,000 prompts, a full post-production team, and still faced significant public criticism.

Industry data also shows that current studio layoffs are not driven by AI. According to financial reports from major studios and analysis from outlets like Variety and The Hollywood Reporter, companies over-expanded during the COVID boom, adding thousands of staff while streaming demand surged. As the market corrected in 2023–2025, studios began reducing headcount—largely due to budget tightening and restructuring, not automation.

The idea that AI is taking over film jobs is part of the broader “AI hype cycle,” where expectations outpace actual capability. Creating reliable AI video that meets broadcast or cinematic standards remains slow, inconsistent, and often more expensive than hiring trained artists and animators. This is why most studios have shifted AI into R&D rather than frontline production.

The bottom line: the conversation is complex, and both the excitement and fear around AI are often exaggerated. It’s worth looking at real data before accepting any extreme narrative.

It is all playing out, and real data will be generated when AI is successfully implemented across the entire production pipeline. I know of two productions that axed several artists, downsizing them to one prompter/fixer for various aspects of the production. I am hearing reports from those in production coordination that AI will also be taking over many entry-level jobs in that area.

This article highlights the "fear" that many studio artists share - https://www.animationmagazine.net/2024/01/animation-guild-co-commissione...

The studios intend for AI to replace as many artists as possible, which is why they made no concessions for artists' protection in the latest Animation Guild negotiations.

It's true there is some people who abuse of AI but I see it as a tool that helps with the things you can't do by yourself, but it's not definitorym it's just a complementary tool, like an assistant.

Joshua Young I really appreciated your perspective on AI in the creative industry. I agree that AI is a tool, not a replacement, and it’s easy to see how companies might push for efficiency at the expense of creative labor.

To Bob's point - I hear you. Studios are testing automation (especially at entry levels), but it generally fails when consistency or edits are needed. Here is why the 'AI Replacement' narrative doesn't match the reality:

It’s mostly budget cuts: The layoffs are largely post-COVID corrections. AI is just a convenient excuse for financial squeezing.

Legal risks are high: Buyers are demanding strict guardrails. With cases like Getty (UK) and Andersen (US) unresolved, no one wants to risk the chain of title on major IP.

The tech falls short: AI struggles with character persistence and multi-shot coherence. It’s great for pitch decks and previs, but not final production.

Artists have valid concerns, but right now, the issue is business management, not technology. So yes, there are experiments, and artists have valid concerns. But most layoffs right now are budget corrections thanks to COVID, not AI replacement. Streamers want more for less, studios are cutting costs, and AI is being used as the explanation even when the real issues are business and rights.

There is no disagreement about the main reason that arts jobs are being lost due to studios scaling back and outsourcing. The alarm is for what is coming down the pike with the advancement of AI in the production pipeline. In a recent Wall Street Journal article, Pixar's Andrew Stanton reveals that jobs will be lost due to AI advancement, but creatives will still be needed.