Generative AI and the Reinvention of Entertainment & Media

Generative AI (GenAI) is no longer a novelty—it’s quickly becoming a cornerstone of innovation in the entertainment and media (E&M) industry. As new tools and capabilities emerge, the question is no longer if GenAI will change the game, but how fast and how far it can go.

In PwC’s 28th Annual Global CEO Survey, nearly half of U.S. CEOs said they expect GenAI to increase profitability this year. An even larger group—61%—anticipate improvements in the quality of their products and services. That optimism marks a clear shift: companies are moving beyond efficiency to explore how GenAI can unlock new forms of value.

The Early Wins: Cost, Speed, Scale

GenAI’s first wave of impact has focused on speeding up processes and reducing production costs. Across Asia, the creative industries are already reaping the benefits. In Japan, studios are using AI to convert story ideas into full scripts, generate lifelike dialogue, and even create animated 3D scenes from 2D sketches. Indonesia’s media sector is also leveraging AI to cut post-production timelines dramatically.

These efficiencies aren’t just about saving money—they’re about enabling scale. For fast-growing content markets, GenAI is helping creators and producers move faster without compromising quality.

New Tensions, New Rules

But with rapid change comes resistance. The 2023 Hollywood writers' strike brought global attention to the risks of unregulated AI use. At its core was a concern shared by many creative professionals: how do we protect the human behind the machine?

The resulting agreement between the Writers Guild of America and the major studios put key guardrails in place. It was a landmark moment—not just for Hollywood, but for the future of human-machine collaboration in creative industries.

The Bigger Opportunity: Growth and Reinvention

While much of GenAI’s current role is behind the scenes, its real power may lie in generating new revenue streams. PwC’s Global Entertainment & Media Outlook 2024–2028 points to advertising as a major growth driver—set to exceed $1 trillion by 2026. GenAI is already reshaping this space by generating copy, adapting visuals, and personalizing campaigns at scale.Instead of months of market testing, brands can now deploy and refine messaging in real time, based on consumer feedback. The loop between idea and execution is closing—and GenAI is powering that flywheel.

What Comes Next

We’re witnessing a strategic pivot: from cost optimization to creative reinvention. Generative AI isn’t just about automation—it’s about expansion. It enables new formats, new business models, and entirely new ways to engage audiences.

For investors and innovators alike, the message is clear: GenAI isn’t just a tool. It’s a platform for building the future of entertainment.

At BAE Ventures, we believe the companies that combine human creativity with AI agility will define the next era of media. We’re actively looking for those bold enough to lead that transformation.