Lionsgate Projects AI Will Cut Production Costs by Tens of Millions

Lionsgate Vice Chairman Michael Burns has put a concrete price tag on the studio's AI ambitions, projecting annual savings of "tens and tens of millions of dollars" from artificial intelligence applications across film and television production.

Speaking at the Gabelli Sports & Media Symposium in New York, Burns outlined how the studio is deploying AI tools for specific production tasks including shot selection, movie previews, and budget planning. The cost reductions represent a significant portion of operational expenses for Lionsgate's studio business, which generated over $3 billion in revenue in its most recent fiscal year.

AI deployment across operations

Beyond traditional production, Burns highlighted AI's role in accelerating content curation for FAST channels and advertising-supported video services. For a studio with an extensive library of films and television episodes, AI-powered tools can dramatically speed up the process of organizing and packaging content for different distribution platforms.

Burns characterized the pace of AI advancement as "Moore's law on crack," suggesting the technology's evolution is outpacing even the rapid progress predicted by traditional tech industry benchmarks. He emphasized that studios owning existing intellectual property gain multiple new monetization pathways through AI applications.

Why it matters

Lionsgate's specific cost projections mark a departure from the cautious messaging most media executives have adopted around AI. While competitors typically emphasize innovation and human collaboration without citing dollar figures, Burns's concrete savings estimates signal growing confidence in AI's near-term financial impact. His framing of AI companies as potential acquirers also reveals how rapidly the power dynamics between technology and entertainment sectors are shifting—a reversal from traditional assumptions about which industry would consolidate the other.

Acquisition landscape shifts

Burns positioned AI companies as "wild card" candidates to potentially acquire Lionsgate, alongside more traditional suitors like private equity firms, media peers, and sovereign wealth funds. He specifically referenced Runway, an AI company that partnered with Lionsgate in 2024 and recently raised funds at a $5.3 billion valuation—a figure that now exceeds many traditional media companies' market capitalizations.

The executive acknowledged the legal complexities surrounding AI implementation, particularly regarding actors' likenesses and intellectual property rights. However, he expressed optimism that collaborative frameworks among stakeholders would establish viable protections, allowing all parties to "monetize it together."

Creative community tensions

The topic remains sensitive within Hollywood's creative community. The 2023 strikes by the Writers Guild and SAG-AFTRA were partly fueled by concerns over AI's impact on copyrighted work and employment. While recent contract renewals addressed some immediate concerns, substantial uneasiness persists about adequate protections for artists.

Most media executives have carefully emphasized human involvement and "responsible" AI protocols when discussing their strategies. Burns's more direct focus on cost savings and efficiency gains represents a notably different tone in an industry still navigating the technology's implications for creative labor.

These details were first reported by Deadline.