AI-Generated Animation is Coming—And It Could Cut Production Costs in Half

When you scroll through Netflix or Disney+, you’re often hit with various animated shows vying for your attention. It can be challenging to identify exactly what you want to watch. As a father of three teens, I know it’s not just me.

Animation runs the gamut from kids’ shows and YouTube Shorts to adult comedy. AI is going to make that situation more difficult.

As creators harness the power of AI, they’re learning that it can go far beyond brainstorming; it can also help with key parts of the production process, ultimately helping reduce production costs. Cheaper animation sounds like a good idea for consumers as it means a quicker turnaround time, potentially more content, and possibly a more polished look.

Having more content to choose from sounds like a good thing, but it may not shake out that way. Read on to learn how AI-generated animation will impact the industry and whether it will help or hurt fans’ ability to find new shows to enjoy.

At its introduction, AI was largely about experimentation, opening up a world of possibilities in content production. That's no longer the case — creators can now use AI in many parts of the production process, especially in animation.

Areas AI can help with animation include:

• Storyboarding
• Concept art
• Character motion
• Dubbing
• Lip-synching
• Color correction

Ultimately, much of the production process can be optimized with AI. The result is greater efficiency and cost savings for producers. In fact, studios could see cost savings of up to 50% and production timelines cut nearly in half over the next five years, per FTI Consulting.

Lower cost is a key driver for many producers. According to Yahoo Finance, animation production costs could be reduced by up to 90% thanks to AI. Such reductions may not happen overnight, but it’s the likely direction for many creators. Studios that lean heavily into AI production may realize reduced costs quickly and move to market faster with new animated content.

Read more: Streaming Was Supposed to Be Cheaper—So Why Are Costs Up 18% This Year?

Whenever I read about lower production costs, I become hopeful that it might mean lower streaming prices. Many Americans deal with streaming fatigue, thanks in large part to seemingly continual price hikes across the streaming space. Unfortunately, reduced production costs likely won’t mean lower subscription costs for most Americans.

Numerous factors are to blame for this, but the primary one is the streaming wars among platforms, according to Fortune. It’s still expensive to acquire and create content, which keeps pressure on subscription pricing.

Even if animation costs decrease, that doesn’t mean studios are seeing lower costs across all content categories. And it’s rare for a service to lower prices for subscribers just because they reduce costs in one area.

One thing is for certain, though. We can expect more animated content as AI becomes thoroughly integrated into the production process. It’s fair to expect more experimental shows, spinoffs, and animated formats. The question remains whether easily made, cheaper content is valuable to consumers or whether it’s merely making content libraries appear fuller.

As a viewer, I don’t care how much it costs to produce what I’m watching, whether it’s an animated show or a movie. That’s not the true test of quality. Like most other viewers, I care about how the story works, the quality of the visuals, and whether the characters are compelling. In short, the end product must feel purpose-driven rather than merely put together.

That’s not to say that AI usage means that content isn’t worth watching. For example, “Dreams of Violets” was recently accepted at the Tribeca Festival. Per The Verge, the production company behind the film says it's the first full-length, live-action, AI-generated film accepted at a major festival, and it had a budget of just $2,000. Using AI for animation can have similar results.

As you watch AI animation, helpful questions to determine its value include:

• Is the styling consistent?
• Do the voices sound human rather than AI-generated?
• Does the story have a clear purpose?
• Are the characters expressive?

The best approach lets human creators focus on storytelling while AI handles the tedious work, adding value while cutting production time and cost. That middle ground can help creators shape the story without it coming across as a haphazard assembly of thoughts driven by AI.

Quality animation is important, but that is just one piece of the puzzle. AI use helps reduce animation production costs, but it also raises concerns:

• Who’s getting paid?
• Who gives permission?
• Who owns the end product?

Those concerns have driven the adoption of numerous safety measures to protect the production process when AI is introduced into it, including compensation and copyrighting concerns.

For instance, SAG-AFTRA, the union representing film and TV actors, is actively working to ensure that voiceover contracts have protections against voice replicas. Understandably, the organization wants human actors to be paid for their work. Copyrighting is another sticking point. AI-generated content can be copyrighted, but only when a human author contributes sufficient creative expression, according to the U.S. Copyright Office.

Smaller studios may argue that AI allows them to compete more effectively. While true, it can also impact jobs and reduce creativity. Viewers may not necessarily care about lower production costs or whether the studio uses AI. Finding a healthy middle ground is what many want. It doesn’t replace human storytellers, but it allows them to use tools to manage tedious work, preserving the human voice that creates compelling animation people want to watch.

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