The Walt Disney Company is seemingly determined to do everything it can to suffer no consequences for its desire to explore using artificial intelligence (AI) over human workers. Disney has long regarded itself as a bastion for treating its Cast Members with dignity and fueling creativity. However, recent revelations about its lobbying efforts have shown that the company does not want to be financially punished for zapping human artistry in favor of AI.
Disney Lobbies for AI
The Walt Disney Company has been paying lobbyists to monitor a New York State Senate bill that would block it from receiving major tax breaks if artificial intelligence is used over human workers in its film and television productions. Bloomberg Law reports that this information has been revealed via disclosures filed with the state Commission on Ethics and Lobbying in Government. Furthermore, the company is not alone in this endeavor. NBCUniversal is also having lobbyists watch this legislation. However, it is important to note that neither company has actually directly lobbied lawmakers.
While these major studios have mostly tried to keep quiet about their AI endeavors, their actions couldn’t be clearer. Media giants have much to gain financially by exploring the use of AI. The current SAG-AFTRA Actors’ Strike has revealed that these companies do not want their artificial intelligence endeavors to hurt their profits. One of the many demands of the union is to have better checks and balances on the use of AI in film and television media. It has come to light that some studios desire to use AI in ways that would financially benefit them, such as by scanning background actors’ likenesses to be used in multiple projects for only one day’s pay. This would let studios create AI replicas of background actors without their consent or compensation.
Disney CEO Bob Iger on Artificial Intelligence
Bloomberg Law also reports that Disney CEO Bob Iger is assertively exploring the use of AI in the future. During the company’s Q1 earnings call this year, Iger stressed that he is “bullish” about artificial intelligence and has Disney’s legal team looking into how to navigate the challenges and difficulties that come with it.
It is easy to see why the Walt Disney Company would want to monitor this New York bill. The entertainment giant reportedly received almost $11 million worth of tax breaks via the Empire State Film Production Credit on projects such as The Eyes of Tammy Faye and Monster Island. NBCUniversal has benefitted substantially more than Disney from these breaks over the years.
Bloomberg Law received a response from a Disney spokesperson, who commented on the lobbying revelations. Albany lobbyist Patricia Lynch Associates Inc. said the following:
As is standard, we track, monitor and review any bills introduced that could potentially impact our business, and in compliance with New York State law, we transparently report those information-gathering efforts in our lobbying disclosures.
New York Moves to Implement AI Tax Break Ban
New York State Senate Bill S7422, introduced by Democratic Senator Lea Webb in May 2023, has sparked a vital discussion about the future of artificial intelligence in the workforce. The bill aims to safeguard employment in the film and television industry by preventing the displacement of human workers through the use of AI or “synthetic media.” The bill’s key provisions include a ban on the use of AI that replaces human roles in productions by applicants for the Empire State Film Production Credit.
While some industry leaders applaud the bill for safeguarding jobs, others voice concerns that it could stifle innovation. This legislation reflects the ongoing debate on integrating AI in various industries and highlights the significance of striking a balance between technological advancement and protecting human employment. As the bill awaits decisions in the Senate Finance Committee, its outcome could have broader implications for the evolving landscape of AI and its role in shaping the future workforce.
The revelation that Disney lobbies for AI over human workers is just one hurdle the company is navigating this year. Disney has also been under fire by Florida Governor Ron DeSantis over accusations that it is grooming children. Furthermore, it has been suffering increasing setbacks at the box office, likely escalating as the actors’ strike continues.
