Hollywood studios and creative unions are currently locked in a complex legal and ethical struggle over the use of artificial intelligence, specifically regarding the ownership of an actor’s digital likeness and the compensation models for synthetic performances. As generative AI technology advances, the entertainment industry is grappling with how to integrate these tools while protecting the fundamental rights of performers to control their own identities, a debate that took center stage during recent industry symposiums and collective bargaining negotiations.
The core of the issue lies in the definition of a “digital replica.” According to the 2023 SAG-AFTRA collective bargaining agreement, studios are now required to obtain “clear and conspicuous” consent from performers before creating or using a digital replica of them in a motion picture. This landmark contract, which concluded a 118-day strike, established the first industry-wide protections against the unauthorized use of AI-generated performances, though legal experts continue to debate the long-term enforceability of these provisions as technology evolves faster than current statutes.
Defining Digital Ownership in the Age of Generative AI
The primary tension in Hollywood today centers on whether a digital likeness constitutes personal property or a work-for-hire asset. When a studio utilizes generative AI to alter a performance or create a synthetic character based on an actor’s biometric data, the question of who owns that “data” remains unsettled in federal courts. The U.S. Copyright Office has maintained a consistent stance that copyright protection requires human authorship, meaning that AI-generated content in isolation cannot be protected, which complicates how studios monetize synthetic performances.

Legal counsel for major studios argue that digital manipulation is merely an extension of traditional special effects, such as stunt doubles or body makeup. Conversely, talent representatives argue that the ability of AI to replicate an actor’s voice, gait, and facial expressions creates a new category of intellectual property. This conflict has led to a surge in private arbitration cases where studios and performers seek to clarify the boundaries of “likeness rights” outside of the public court system, according to industry reports published by the Hollywood Reporter.
How Collective Bargaining Agreements Are Changing
The 2023 SAG-AFTRA contract serves as the current blueprint for managing AI in film and television production. Under these terms, performers must be compensated for the time they would have otherwise worked if their digital replica is used in a production. Furthermore, the agreement mandates that studios provide a description of the intended use of a digital replica, ensuring that actors are not subjected to “surprise” appearances of their likeness in scenes they never performed.
However, the rapid development of open-source AI models has created a secondary market that is difficult for traditional unions to regulate. While major studios are bound by contract, independent productions and international entities often operate in a legal gray area. This environment has prompted calls for federal legislation, such as the NO FAKES Act, a proposed bill that would establish a property right in one’s voice and likeness, effectively creating a federal standard for “right of publicity” that would apply regardless of state laws or union contracts.
The Future of Performance and Compensation
The economic impact of AI on the acting profession remains a point of contention for both established stars and background performers. Background actors, in particular, face the risk of being replaced by “digital extras,” where a single scan of an individual could lead to infinite appearances in a studio’s library without additional pay. The SAG-AFTRA union has successfully pushed for language that requires “meaningful consultation” when an actor’s likeness is altered to a degree that significantly changes their performance, but the practical application of this rule in post-production remains a significant administrative hurdle.
For studios, the incentive to use AI is driven by the potential to reduce costs in post-production and visual effects. By using AI to “de-age” actors or dub dialogue in multiple languages, studios can theoretically reach global audiences more efficiently. However, the lack of a clear legal framework regarding the “right of publicity” for the deceased also remains a major concern, as estates of legendary performers are increasingly entering the fray to prevent unauthorized digital resurrections of their clients.
What Happens Next in the AI Legal Battle
The next major checkpoint for the industry will be the upcoming legislative hearings regarding the NO FAKES Act, which is expected to see significant testimony from both creative unions and technology lobbyists. Additionally, the industry is watching for the outcome of ongoing intellectual property lawsuits involving generative AI companies, which may set precedents for how “training data”—the information used to teach AI models—is sourced from copyrighted film and television footage.

As these legal and technical processes unfold, the balance of power in Hollywood will likely shift toward those who can best navigate the intersection of creative rights and technological capability. For performers, the goal remains the preservation of human-led artistry, while studios continue to view AI as a vital tool for the future of entertainment distribution. Readers interested in following these developments can monitor the U.S. Copyright Office official portal for updates on policy guidance and public comments regarding AI and creative works.
What are your thoughts on the role of AI in film? Share your perspective in the comments below.
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