During Paramount Skydance’s latest earnings call, Ellison addressed the company’s strategic outlook regarding generative artificial intelligence. When asked about how the emerging technology would influence future productions, the chief executive offered an expansive view of the landscape, arguing that AI is poised to trigger a massive shift in how motion pictures and media are conceived, budgeted, and brought to life.

Ellison stated that when looking broadly at the production pipeline, artificial intelligence holds the potential to become the largest creative unlock in modern history. Comparing the current technological wave to past industry transformations, he pointed directly to the early 1990s, when digital composites and CGI first entered the mainstream filmmaking vocabulary. That era of technological innovation gave birth to groundbreaking cinematic milestones such as Jurassic Park and Terminator 2: Judgment Day, pushing the boundaries of what visual effects could achieve on the silver screen.

According to Ellison, it is difficult to imagine that artificial intelligence will not have an even more significant impact on the industry than CGI did three decades ago. He expressed a personal conviction that this transformation will ultimately serve as an incredible catalyst for creativity rather than a detriment to the artistic process.

To illustrate the economic realities driving the push for new production tools, Ellison reflected on the original Terminator franchise. He noted that the classic sci-fi film was made on a budget of roughly $4 million at the time of its release. However, he pointed out that attempting to produce that exact same picture today, shot for shot, would carry an inflated price tag ranging anywhere from $60 million to $70 million.

David Ellison says AI could be the ‘biggest creative unlock in modern history’

The skyrocketing costs of modern filmmaking have introduced profound financial risks for studios looking to greenlight original concepts, often pushing risk-averse executives to rely heavily on pre-existing intellectual property and guaranteed franchises. Ellison suggested that artificial intelligence could offer a viable solution to this economic bottleneck. By helping to rein in and streamline bloated production budgets, these new tools could make financial risks more digestible, thereby encouraging studios to greenlight more original storytelling and experimental narratives.

Elaborating on the practical integration of the technology within corporate operations, Ellison revealed that artificial intelligence will significantly reshape Paramount Skydance’s broader business model. He disclosed that the company has actively been developing its own proprietary AI tools tailored to its production and operational workflows.

As a direct result of deploying these custom-built solutions, Ellison claimed that content will become significantly easier to produce, projects moving through various departments across the organization will experience accelerated timelines, and the fundamental ways in which studio employees work will undergo a massive transformation. Despite these sweeping operational efficiencies, Ellison was quick to frame the shift as a multiplier of value rather than a dilution of human labor. He emphasized that these technological advancements ultimately render the value of premium intellectual property and live events even more valuable, rather than diminishing their worth in the marketplace.

Addressing widespread anxieties across the creative community regarding the devaluation of human labor and the proliferation of low-quality automated media, Ellison struck a reassuring tone. He pointed out that in an impending world saturated with what he characterized as artificial intelligence "slop," there will always command a distinct financial and cultural premium for genuinely hand-crafted storytelling born from human experience and emotion.

Concluding his remarks on the subject, Ellison reiterated his firm belief that artificial intelligence must be viewed strictly as a tool intended to assist and empower artists. He firmly stated that the technology will never serve as a replacement for the human talent that drives the creative soul of the entertainment industry.