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Disney launches task force to study AI and cut costs as Hollywood strike rages: report

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Disney is pushing ahead with efforts to incorporate artificial intelligence across the company – even as the technology is one of the biggest points of contention in the ongoing Hollywood strike.

The Bob Iger-run Mouse House has created a task force to study artificial intelligence and see how it can be used across the company, Reuters reported on Tuesday,.

Launched earlier this year, before Hollywood writers and actors went on strike, Disney’s task force is reportedly looking to “develop AI applications in-house as well as form partnerships with startups.” 

Currently, Disney has 11 job openings seeking candidates skilled in artificial intelligence or machine learning. The positions touch virtually every corner of the media and entertainment giant — from Walt Disney Studios to the company’s theme parks and engineering group, Walt Disney Imagineering, to Disney-branded television and the advertising team, which is looking to build a “next-generation” AI-powered ad system, according to the job descriptions on the company’s website.

A Disney rep did not return requests for comment.

The company is expected to report its quarterly earnings on Wednesday.


SAG-AFTRA actors and Writers Guild of America (WGA) writers walk the picket line during their ongoing strike outside Walt Disney Studios in Burbank, Calif. on July 31, 2023.
SAG-AFTRA actors and Writers Guild of America (WGA) writers walk the picket line during their ongoing strike outside Walt Disney Studios in Burbank, Calif. on July 31, 2023.
REUTERS

Embracing AI could prove to be a way for Disney to innovate while also cutting costs, as the struggling media giant looks for new ways to grow.

Disney has been weighed down by a handful of box office flops, including the recent “Haunted Mansion,” as well as sluggish attendance at its Disney World and Disneyland theme parks.

Iger recently commented on the challenges in its TV business, noting that he may look for a strategic partner for ESPN or even a sale of some of the companies TV assets like ABC.

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Meanwhile Disney, like other media giants, must stay at the forefront of new technologies.

“Legacy media companies like Disney must either figure out AI or risk obsolescence,” a Disney insider told Reuters.


Bob Iger
Bob Iger has historically made technology a priority at Disney during his tenure as CEO.
AFP via Getty Images

The person pointed to the high costs of big-budget flicks that can balloon to $300 million for major film releases like “The Little Mermaid.” Those films need to have strong box office returns to just break-even, and AI could help movie studios reduce costs.

On the theme-park level, machine-learning technology could enhance customer support or create new kinds of interactions with guests. Reuters pointed to machine-learning created Baby Groot, a small, free roaming robot that mimics the “Guardians of the Galaxy” character’s movements and personality.


SAG AFTRA striker
Striking actors and writers view the use of AI by studios as an existential threat to their livlihood.
Getty Images

Machine learning, the branch of AI that gives computers the ability to learn without being programmed, could one day make it possible for Baby Groot to interact with guests, for example.

The prevalence of AI has become a hot-button issue in Hollywood where writers and actors view its use as an existential threat. Currently, it is a central issue in contract negotiations with the Screen Actors Guild and the Writers Guild of America, both of which are embroiled in a protracted strike.

Disney has tried to tread lightly on the issue — even though embracing new technology has been core to creating some of the company’s biggest movies including the “Avatar and “Black Panther” franchises.



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