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AI will take center stage in Hollywood contract negotiations

A woman in a dark shirt raises a fist in a crowd
Jessika Fuhrmaneck, center, a writer and actor, joined thousands of striking writers and actors in a boisterous rally outside Paramount studios during the Hollywood strikes in 2023.
(Al Seib / For The Times)
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As Hollywood writers prepare for contract negotiations with major studios, one topic remains front and center: the role of artificial intelligence.

On Friday, the Writers Guild of America released a list of contract demands, which 97% of the union membership supports. Though some details have yet to be revealed, many of the union’s asks involve expanding protections over the use and abuse of AI, in addition to improved health coverage and higher residuals.

AI and streaming residuals were central issues in strikes by actors and writers in 2023.

WGA’s current contract, which expires May 1, established that AI isn’t a writer and nothing it produces is considered literary material. It prohibits companies from giving writers AI-generated scripts for a rewrite fee or requiring writers to use AI software, and a company must disclose whether any written materials were developed using AI.

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Roughly two years after one of Hollywood’s biggest strikes, its unions are once again sitting down for negotiations with major studios. SAG-AFTRA is up first, starting bargaining Monday.

The union says its current demand is to simply “expand” these protections. Other priorities include increasing contributions to the WGA benefit plans, raising minimums for “page one” rewrites and boosting streaming residuals.

The Screen Actors Guild-American Federation of Television and Radio Artists has identified similar issues as it negotiates a new contract for actors. Last week, SAG-AFTRA and the bargaining group for the major studios disclosed that they are extending their negotiations for seven days. The discussions began Feb. 9.

The union, whose contract expires June 30, is expected to propose what has been called the Tilly tax, a fee that studios would have to pay to the union in exchange for using an AI actor. This demand is in response to the first AI actor, Tilly Norwood, being introduced to Hollywood. Though the bot has yet to star in a major project, the fear of AI-generated characters taking jobs is real for many actors. The bot’s creator, Xicoia, also recently announced the expansion of its AI actor universe, called the “Tillyverse.”

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Internal labor strife between staffers of the Writers Guild of America West and the union has prompted a cancellation of its Los Angeles awards ceremony

WGA’s negotiations are set to start Monday and will be led by Ellen Stutzman. The studios will be represented by the Alliance of Motion Picture and Television Producers’ new president, Gregory Hessinger.

The negotiations are happening as WGA West’s own staff members have been on strike, forcing the guild to call off its L.A.-based award show. The staff union, with more than 100 employees, are similarly demanding higher pay and protections against AI.

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