Hollywood Strike: Writers Secure Credit as Studios Retain AI Training Rights in New Deal

A tentative labor agreement between Hollywood studios and the Writers Guild of America (WGA) will likely allow studios to continue training artificial intelligence (AI) models using writers' works to the relief of the likes of Warner Bros. Discovery, Inc WBD, Paramount Global PARA, Netflix, Inc NFLX and Walt Disney Co DIS.

However, writers will likely gain a significant victory, ensuring they receive both credit and compensation for their contributions, even when AI tools are employed. 

Also Read: Hollywood Strike Impact - Warner Bros. 'Dune: Part Two' Among Major Delays

This development follows a nearly five-month strike and ongoing negotiations with the Alliance of Motion Picture and Television Producers (AMPTP), the Wall Street Journal reports.

The use of AI, particularly generative AI like OpenAI's ChatGPT, has been contentious. 

These AI systems, capable of producing human-like text, are trained on extensive data, including writers' works. 

Hollywood studios have been keen on retaining the rights to use these works for AI training, a stance influenced by the understanding that AI tech platforms are already utilizing such materials.

Entertainment companies are exploring AI applications in various areas, including script summarization, special effects, and promotional marketing. 

For instance, Warner Bros Discovery has considered using ChatGPT to create show descriptions and potentially summarize scripts.

The broader conversation around using authors' and artists' works for AI training without compensation has stirred legal and ethical debates. Prominent authors have sued OpenAI for copyright infringement, and news publishers have labeled the unremunerated use of their content a copyright violation. 

These developments have prompted discussions between content creators and tech companies, leading to arrangements like the licensing deal between The Associated Press and OpenAI.

In September, Warner Bros Discovery revised its FY23 guidance, expecting the financial impact to WBD of these strikes to persist through the end of 2023.

Price Action: WBD shares are up 0.09% at $10.70 premarket on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.