What happens on set

In Culver City, within sight of the historic Sony Studios, the AI studio Promise is shooting a horror film called "Touch Grass" on a budget in the low millions. As The Guardian reports from a set visit, the soundstage consists of little more than white sheets in a corner of an office.

While a camera films the actress Tori Thomas during a chase scene, the AI overlays her movements in real time with a swaying field of grass. The imagery is generated by the Chinese model Seedance 2.5, released in August 2026. Even the blades of grass move as the actress appears to brush past them. The entire scene, featuring the actress and the backdrop, appears instantly on the director's monitor, and with a few clicks the meadow can be replaced by an underground cave.

The cost claim

Promise is backed by Google, Silicon Valley investors and Disney, making it part of a growing number of AI studios setting up shop in Hollywood. Co-founder George Strompolos estimates that hybrid productions combining human actors and AI technology are 20 to 50 percent cheaper than conventional films, which could make filmmakers less dependent on the major studios.

Figures showing how widespread the technology already is:

  • Netflix stated that by 2026 it will have used AI in 300 of its 1,000 titles.
  • Ron Howard is collaborating with the AI studio Obsidian on an animated documentary, whose executive producer estimates the savings at 30 to 40 percent.

Diverging views

Oscar winner Joel Hynek, who once created the analog effects for "Predator", compares the upheaval to the shift from film to digital and speaks of "incredible promise".

Resistance, meanwhile, remains significant. Directors such as Christopher Nolan and Guillermo del Toro are critical of generative AI. The debate, in other words, is not running on whether the technology works but on what it costs.

Where commercialisation is fastest

While Hollywood is still debating the use of the technology, the video startup Higgsfield is already profiting from it on a large scale. According to the Financial Times, the company, founded by former Snap executive Alex Mashrabov, has raised more than $400 million. Its main revenue line is promotional videos rather than feature films.

That distinction matters for where the sector is heading. On the cinema side the technology is still a subject of argument; on the advertising and promotion side it is already established. Short, numerous content that has to be produced quickly maps exactly onto where the model is strong. The place where the industry is being built is not the place where the artistic argument is running.