Mike Bennion, a finalist at this year’s Reply AI Film Festival, told Semafor that filmmakers in Hollywood frequently use artificial intelligence to save money. Bennion said he was recently asked to explore whether AI could patch budget shortfalls on a Hollywood production currently in production. He would not name the film or studio, saying he had been "sworn to secrecy," and added that he finds many in the industry hypocritical — they use the technology but are reluctant to explain how or why.
The festival and its context
The Reply AI Film Festival takes place next to the Venice Film Festival. At the 83-year-old Venice Film Festival, stars will view big-budget premieres over Labor Day weekend, including a Chris Hansen biopic starring Robert Pattinson and a film from Martin McDonagh; one of those entries will win the Golden Lion. This year Reply’s judges selected ten finalists from more than 3,000 AI-generated film submissions to premiere at the event.
Who is using AI and how
Catherine Hardwicke, director of Twilight and a juror at this year’s Reply AI Festival, said Hollywood is buzzing about AI. She told reporters that "every single director" she’s spoken with in recent months — including very big, Academy-nominated blockbuster directors — is curious about AI. Hardwicke noted that many directors are already using it for backdrops and previsualization, among other uses.
Directors and companies embracing the technology
Some well-known filmmakers and companies are openly experimenting. Steven Soderbergh said in April he plans to use "a lot of AI" for a film he hopes to make about the Spanish–American War. Darren Aronofsky has launched an AI-focused studio, Primordial Soup. Martin Scorsese joined AI firm Black Forest Labs as an adviser in June.
Major deals also reflect industry interest: A24 signed a $75 million deal with Google, and Disney struck a $1 billion agreement with OpenAI that includes licensing some of its intellectual property for OpenAI’s AI video product Sora. Netflix co-CEO Ted Sarandos disclosed on a recent earnings call that AI has been used in about 300 Netflix titles so far this year.
Small studios and backlash
Jacopo Reale, creative director at Rome-based Labyrinth Studios and another Reply finalist, said his AI film studio is working on a show for Sky Cinema, the British subscription service owned by Sky Group. Sky Group did not respond to requests for comment. Reale has also faced strong backlash: when his first AI-assisted film went viral on X (formerly Twitter), he received death threats over his use of AI.
The main obstacle: taste and audience distrust
The largest barrier to broader AI acceptance in Hollywood is taste. A recent Gallup poll found that 55% of Americans believe any creative work touched by AI makes for worse art than human-only creations. Part of that distaste stems from the large volume of low-quality AI content online — the "slop" videos (think novelty clips or more salacious items) that clog Instagram Reels and TikTok feeds. AI can multiply the quantity of content, and much of it is low quality, but Bennion argues that the top 0.1% of AI-created work could still produce strong storytelling.
Practical benefits on set
Practical reasons for adopting AI are clear: it can cheaply fix production mistakes — for example, smoothing a visible makeup line from a character’s bald cap, an issue Hardwicke noticed during a rewatch. The technology is especially transformative for indie filmmakers with limited budgets; Bennion said he likely would not be a filmmaker today without access to AI tools.
AI beyond film
AI is also spreading in sports broadcasting, powering everything from personalized highlight shows to reviving deceased announcers' voices, according to The Hollywood Reporter.
Conclusion
Conversations at the Reply AI Film Festival reflect a film industry in transition: AI is being integrated into production workflows as a cost-saving and technical tool, even as audience skepticism and vocal backlash continue. Some creators and major companies are forging visible partnerships and deals, while others use AI more quietly or face intense criticism when their work becomes public.
