Hollywood's Covert Rush to Create the First AI Blockbuster

Hollywood is in a clandestine race to produce the first blockbuster largely generated by artificial intelligence, a development that some in the industry liken to a new space race.

While the film industry has historically been resistant to technological shifts, with some filmmakers shunning digital formats or CGI, AI has been met with significant skepticism. However, behind the scenes, studios, directors, and screenwriters are actively pursuing AI's potential to innovate and captivate audiences.

"The space race was about being first, but it was also about inspiring the world that we should keep competing and keep investing [in the technology]," said Bryn Mooser, a documentary short Oscar nominee. "Bigger than being first, which is fleeting, is inspiring the world."

While entirely AI-generated films have been produced, they have largely been low-budget or online-exclusive projects. Now, prominent figures are reportedly experimenting with AI in ways that may extend beyond public admissions.

Legendary director Martin Scorsese partnered in 2025 with German AI company Black Forest Labs, utilizing its technology for pre-production and storyboard creation. "I’m interested in the intersection of technology and storytelling, and seeing how that can push the bounds of creativity to create deeper and richer experiences for audiences," Scorsese stated.

This move has drawn criticism from traditionalists who recall Scorsese's meticulous hand-drawn storyboards for films like "Raging Bull." However, industry insiders suggest that embracing new tools is essential to avoid falling behind.

"They are scared to admit it publicly, but it is a tool that gives an advantage. If you don’t use it, you’ll be at a disadvantage to those who are using AI," said David Defendi, a screenwriter and founder of an AI software company.

Oscar-winner Ben Affleck invested in AI startup InterPositive, whose technology can reportedly adjust lighting, remove stunt ropes, and correct continuity errors. Netflix acquired the company for up to $600 million, a substantial sum for such capabilities.

Media mogul Janice Min noted, "The thing with AI right now in Hollywood: Everyone’s lying just a little bit… Studios are lying about how much they’re using it." The industry is also navigating concerns from labor unions, which are wary of AI replacing creative roles.

Production companies are reportedly integrating AI technology with filmmakers to drive innovation. Mooser anticipates that a significant AI-driven success will serve as a "real wake-up call" for the entire industry.

Unions have been particularly vocal against AI-generated characters, citing controversies such as the digital creation of "Tilly Norwood" for the film "Misaligned." However, other applications of AI are facing less resistance.

"Killing Satoshi," a Bitcoin-themed film starring Casey Affleck and Pete Davidson, is reportedly leveraging AI extensively. Directed by Doug Liman, the movie plans to utilize AI to create over 200 diverse locations, from Antarctica to Antigua. Filming is occurring on a "grey box" stage where digital environments will be constructed around the actors. Liman claims AI has reduced the film's budget from $300 million to $70 million by cutting travel and shooting time.

Filmmaker Darren Aronofsky, known for "Black Swan," has produced a series of American Revolution shorts titled "On This Day… 1776" using AI. IMAGE3

On the performance side, actors are taking steps to protect their digital likenesses. Matthew McConaughey, for instance, has filed trademark applications to prevent unauthorized use of his image online. Many actors are also working with studios to scan their digital images for potential use in AI productions.

This technology is being employed to feature actors posthumously. The late Val Kilmer is slated to appear in "Deep as the Grave" through AI recreations and archival footage. IMAGE1

Similarly, veteran actor Michael Caine has licensed his voice to ElevenLabs for commercial use, including narration. McConaughey, an investor in ElevenLabs, is reportedly using the same technology to translate his voice into Spanish.

Screenwriter and director Paul Schrader, a collaborator with Scorsese, expressed optimism about AI's future in filmmaking, predicting that an AI-generated film will soon achieve significant financial success. "By the time I get out, there will be 10 or 20 AI films ahead of me. And one of those is going to make a lot of money," he stated.