In a change that displays AI’s rising affect — and probably disruptive energy — in Hollywood, Netflix added generative AI to the listing of potential danger components on its annual report filed with the SEC.
In Netflix’s 10-Ok report filed Friday, it added this new part to the lengthy part of danger components (that are required underneath SEC guidelines) within the part about video competitors: “[N]ew technological developments, together with the event and use of generative synthetic intelligence, are quickly evolving. If our opponents achieve a bonus through the use of such applied sciences, our potential to compete successfully and our outcomes of operations might be adversely impacted.”
Netflix additionally added this wording: “As well as, the use or adoption of recent and rising applied sciences could improve our publicity to mental property claims, and the provision of copyright and different mental property safety for AI-generated materials is unsure.”
Other than these two sections, the chance components on Netflix’s 10-Ok for 2023 — totaling some 10,000 phrases — remained largely the identical.
To make certain, the modifications listed below are very small, within the grand scheme of issues. And take into account that these are all of the potential danger components that firms like Netflix should talk to buyers.
However using AI by studios flared right into a hot-button challenge for the 2 Hollywood unions that went on strike in 2023, WGA and SAG-AFTRA, involved in regards to the expertise hurting their livelihoods. The WGA’s deal consists of guardrails round using generative AI within the inventive course of, together with a provision that provides the union itself the ability to problem using writers’ current work to coach AI software program applications. The SAG-AFTRA settlement with the studios consists of some, however not all, of the union’s calls for on AI; for instance, the deal permits AI fashions to “practice” on actors’ performances to create artificial characters and actors will be capable of forestall that provided that the ultimate output consists of the actors’ recognizable facial options.
Throughout the writers strike, Netflix generated ire on the picket strains over its job itemizing for a product supervisor within the firm’s machine-learning group with a wage vary of between $300,000 and $900,000. Hanging union members railed about Netflix’s posting — regardless that the job in query centered on AI developments for content material personalization and optimizing payment-processing methods, not generative-AI initiatives per se.