AI Could Cut Animation Costs 90%, Stoking Layoff Fears

A view is spreading that generative AI could compress animated film production costs by up to 90%, intensifying concerns in Hollywood about large-scale layoffs. The claim traces back to a prediction by DreamWorks co-founder Jeffrey Katzenberg at the 2023 Bloomberg New Economy Forum. He said that whereas a world-class animated film once required 500 artists over five years, it would now take less than 10% of that, forecasting a 90% cost reduction through generative AI (Bloomberg, The Hollywood Reporter).