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Major studios are splitting into two camps on AI adoption. Tom Hanks is being digitally de-aged in Robert Zemeckis' new $50M film "Here" while directors Scott Beck and Bryan Woods included an explicit "No generative AI was used" disclaimer in their new film "Heretic"

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Join the Bagel team on November 6, 3pm EST, for a deep dive into LLM reasoning capabilities and their evolutionary impact on AI development.

This month Bagel’s research focuses on transforming LLMs from pattern-recognition systems into true cognitive agents through advanced reasoning capabilities.

Lead Researcher, Marcos Villagra will lead an interactive discussion and demo of their Bakery platform.

About Bagel: Bagel is an AI & cryptography research lab. Building the world's first monetization layer for open-source AI.

What’s happening in AI right now

AI divides Hollywood's future

Tom Hanks is being digitally de-aged across six decades in Robert Zemeckis' new $50M film "Here" - but not everyone in Hollywood is embracing AI's entrance into filmmaking. Directors Scott Beck and Bryan Woods made waves by including an explicit "No generative AI was used" disclaimer in their new film "Heretic," highlighting growing tensions around AI's role in creative industries.

The great divide

Major studios are splitting into two camps on AI adoption. On one side, companies like Amazon and Netflix are beginning to integrate AI tooling - Amazon just launched AI-powered X-Ray Recaps to automatically generate show summaries, while Netflix appointed a new VP of GenAI for Games to accelerate development. The other camp, represented by independent filmmakers and some traditionalists, warns about AI's impact on human creativity and jobs.

This divide mirrors broader industry patterns that Clayton Christensen identified in his work on disruptive innovation. When new technologies emerge, established players often split between aggressive adoption and defensive resistance. The film industry appears to be following this classic pattern.

Technical breakthroughs and creative concerns

The technical capabilities are advancing rapidly. Metaphysic's real-time face aging technology in "Here" eliminates months of manual post-production work. Runway's Act-One feature is simplifying character animation by transferring human expressions to animated characters without specialized equipment.

But as Clay Christensen and Michael Raynor note in "Surviving Disruption", the most successful responses to disruption require understanding both the technology's potential and its limitations. Current AI tools still struggle with complex scenes and natural movement. At the same time, they raise fundamental questions about authenticity and creative ownership that studios must address.

Studios face what Andy Grove called a "strategic inflection point" - a time when the fundamentals of a business are changing. The choices they make now about AI adoption will likely determine their competitive position for years to come.

We publish daily research, playbooks, and deep industry data breakdowns. Learn More Here

This week on the podcast

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In this episode, the hosts Anthony Batt and Shane Robinson with guest Joe Veroneau from Conveyor discuss outsmarting paperwork. Conveyor is a company that helps automate security reviews and document sharing between companies. They use AI technology, specifically language models, to automate the process of filling out security questionnaires. This saves customers a significant amount of time and improves the quality of their responses.

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