Disney & Universal Turn Shameless In AI & Tax Usage

Walt Disney Co. and NBCUniversal are closely monitoring a bill introduced in New York’s legislature that could strip them of a state tax break if they use artificial intelligence (AI) to replace workers in their film and TV productions. Both companies are currently facing tensions with Hollywood writers and actors over the future use of AI, with major studios pushing for a more lenient environment.

If passed, the bill (S.B. 7422) could serve as a precedent for other states, potentially leading to significant financial losses for media companies in the future. As the entertainment giants delve into AI’s potential, Disney CEO Bob Iger remains “bullish” about its prospects despite acknowledging potential challenges in managing intellectual property.

NBCUniversal has already made strides in AI adoption for advertising, while Disney plans to leverage the technology moving forward. Both companies have benefited from generous state tax credits for their productions in New York.

As Assemblyman Demond Meeks sponsors the bill to protect workers’ dignity amid AI job fears, Disney and NBCUniversal are quietly working with lobbyists to safeguard their interests. While neither company has taken a public stance on the bill yet, they could potentially lobby lawmakers and the governor during the next session.

As the battle over AI and worker displacement continues, the outcome of this bill could have far reaching implications for the future of the entertainment industry and workers’ livelihoods.