Hollywood vs AI: Why famous actors including Oppenheimer, Barbie cast are on strike

Hollywood is currently experiencing a historic moment as two major unions, representing actors and screenwriters, have simultaneously announced strikes, marking the first time in over six decades that such a convergence has occurred. The Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) and the Writers Guild of America (WGA) find themselves at odds with the Alliance of Motion Picture and Television Producers (AMPTP) and the industry as a whole, setting the stage for a significant standoff.

Negotiations between SAG-AFTRA and AMPTP reached a critical point when the deadline to secure a new contract passed on July 12 without an agreement. Consequently, union leadership swiftly declared plans for an actors' strike. The impact of this decision was immediately felt, as prominent movie stars such as Cillian Murphy, Emily Blunt, and Florence Pugh opted to leave the Oppenheimer red-carpet premiere to prepare for the picket lines, demonstrating their solidarity with the cause.

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During a press conference, SAG-AFTRA president Fran Drescher expressed the urgent need for action, emphasizing the industry's transformation due to streaming, digital platforms, and artificial intelligence. Drescher highlighted the historic nature of the moment, stating, "You cannot keep being dwindled and marginalized and disrespected and dishonoured. The entire business model has been changed by streaming, digital, and AI. This is a moment of history. If we don't stand tall right now, we are all going to be in trouble."

Barbie star Margot Robbie said that she would absolutely be prepared to join the actors' strike if it goes ahead. She was seen at a London photo call before joining the strike. "I'm very much in support of all the unions and I'm a member of SAG so I would absolutely stand by that," she told a reporter.

Meanwhile, Christopher Nolan confirmed before the beginning of the Oppenheimer screening that the cast has left in solidarity with the SAG-AFTRA strike.

Rashi Gupta, co-founder and Chief Growth Officer of Rezo.ai told Business Today, "AI's potential in the creative arts is immense, as demonstrated by recent developments in Hollywood. As pioneers in Conversational AI, we see this as an opportunity to enhance human creativity, not replace it. Our vision is a future where AI and humans coexist, each amplifying the other's strengths, creating a synergy that pushes the boundaries of what's possible. Let's embrace this change together, for a more innovative and inclusive world."  

Pawan Prabhat, co-founder of ShortHills AI told Business Today, “The strike brings to the fore 3 major dimensions- Creativity, Consent and Compensation. Thanks to AI, today, a digital avatar of anyone can be created. Envisioning a future where AI replicas are used to portray values and beliefs that contradict one's personal convictions, without taking one’s consent, and without any compensation for commercial purposes, would be an unsettling and concerning prospect.” 

“There need to be well-defined guardrails that ensure that technological advancements are not independent of the advancement of humankind,” he added.

The work stoppage, coupled with the ongoing screenwriters' strike led by the WGA, will effectively grind television and film productions worldwide to a halt. This development will have far-reaching consequences for the state of Hollywood and the entertainment industry as a whole.

Understanding SAG-AFTRA

SAG-AFTRA is a union that represents around 160,000 professionals, including actors, broadcast journalists, announcers, hosts, and stunt performers. Through collective bargaining agreements, the union ensures its members receive essential protections related to pay, working conditions, and residuals.

The union negotiates with the AMPTP, which represents studios, production companies, and streaming services such as Paramount, Disney, and Netflix. These contracts are typically renegotiated every three years. Although the previous contract was scheduled to expire on June 30, an extension was granted, with a new deadline set for 11:59 p.m. PST on Wednesday, July 12.

The Actors' Demands

SAG members are pushing for improved pay and working conditions as they confront a labour landscape significantly altered by streaming platforms and threatened by artificial intelligence.

The rise of streaming services like Netflix, Hulu, and HBO Max has not only reshaped the culture of television and movie consumption but also transformed the way actors are compensated. Actors now face declining residuals and wages that fail to keep up with inflation. Additionally, the traditional reliance on royalty payments, linked to a show's rerun frequency, has diminished due to streaming. The changing landscape has also complicated job opportunities, as shorter seasons spread over longer periods result in fewer available roles.

Another significant point of contention revolves around the unregulated use of artificial intelligence. SAG members are demanding guarantees from studios and production companies on the deployment of AI in the industry. However, the AMPTP has shown reluctance to accommodate these demands, leading to further tensions.

One actress, speaking to Deadline, described the industry's position on AI as a "power grab," expressing concerns that actors could be digitally replicated or replaced by AI-generated content, creating a source of cheap labour for the studios.

To showcase their unwavering resolve, approximately 98 per cent of the 65,000 SAG members who participated in the ballot voted in favour of authorizing union leaders to call for a strike if no agreement was reached by the July 12 deadline. In June, over 300 actors, including prominent figures like Meryl Streep, Jennifer Lawrence, and Keke Palmer, expressed their support for a potential strike by signing a letter, underscoring the need to address consequential issues head-on. Even SAG-AFTRA President Fran Drescher signed the letter, highlighting the widespread determination within the industry.

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Implications of the Strike on Hollywood

By resorting to a strike, actors aim to leverage their collective power to prompt AMPTP to address their demands in the upcoming contract negotiation. With actors and screenwriters withholding their labour and the accompanying profits it generates, studios and production companies will likely face heightened pressure to propose a resolution that brings the workforce back to their projects.

However, the implications of the strike for actors, TV shows, movies, and audiences are significant during this period.

A vast majority of film and television sets will be shut down indefinitely, causing delays in the release dates of new movies and shows. Consequently, audiences may have to wait longer to enjoy new seasons of their favourite programs. This situation mirrors the impact of the Writers Guild of America screenwriters' strike earlier in the year, which prompted late-night talk shows like The Tonight Show and The Late Show to go on hiatus.

Furthermore, actors will be prohibited from promoting their forthcoming projects through premieres, press junkets, interviews, panels, and other promotional activities on their social media accounts.

It is worth noting that news and broadcast programs will remain unaffected by the strike, allowing regular programming to continue uninterrupted.

Previous Strikes in Hollywood

The Screen Actors Guild has a history of going on strike, with the first instance occurring in 1952 and the most recent in 2000. The turn of the millennium witnessed the longest-ever actors' strike, lasting for six months from May to October. The primary cause of the strike was the breakdown of negotiations over compensation for work in broadcast, cable, and internet commercials.

Regarding the writers' strike, screenwriters belonging to the Writers Guild of America initiated their strike in early May. The WGA and the AMPTP failed to reach an agreement on issues similar to those raised by SAG members, such as media residuals and the use of artificial intelligence.

This simultaneous strike by SAG members and the ongoing screenwriters' strike marks the first time since 1960 that the unions representing actors and screenwriters have coordinated their efforts. In that year, SAG, led by future US President Ronald Reagan, went on a six-week strike during the WGA's nearly six-month-long strike.

The coordinated efforts of both actors and writers walking off the set will inevitably force many companies to halt production on their ongoing projects, significantly impacting the industry as a whole.

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