Today’s headlines about artificial intelligence (AI) describe it as a transformative force reshaping entertainment and technology. Companies across the spectrum are adopting AI to streamline operations, enhance content production, marketing, and distribution efficiencies, and revolutionize the viewer experience. But are consumers keeping pace with this rapid evolution and what do they think about it?

Popular AI tools like OpenAI’s GPT-4 and DALL-E generate images, music, scripts, games, and even fully realized ads and video content. These advancements blur the lines between “real” and “fake” content. Post-production AI tools can now enhance not just backgrounds and environments but also character identities and storylines. AI algorithms also help to better match viewers with content they love, refining recommendation systems and personalizing viewer experiences.

Consumer awareness and usage of AI

A recent report by HUB, part of the Entertainment & Technology Tracker series, delves into consumer awareness and understanding of AI’s current capabilities. The study reveals that 71% of respondents are familiar with “generative AI,” and only 18% feel “very confident” in explaining what it is and does. Interestingly, 57% of respondents use one or more generative AI models, highlighting a significant gap between awareness and deep understanding.

Perceptions of AI: good vs. bad

The report finds that nearly half of the respondents view AI as a positive development, compared to about a quarter who see it as potentially negative. Among those who view AI favorably or unfavorably, a common belief is that AI fundamentally changes how we live and work. However, there are notable concerns, particularly around privacy, employment risks, and the potential misuse of AI for creating deepfake content.

Consumer interaction with AI

Consumers are increasingly interested in AI-driven features that enhance content discovery and selection. Despite this interest, there is a clear preference for human creativity in certain domains. For example, more consumers believe humans outperform AI in tasks like writing music or dialogue. Conversely, they view AI as equally capable of generating game dialogue or trailers and superior in tasks like CGI, writing descriptions, or creating subtitles.

The desire for transparency in AI-generated content is also strong. According to the report, 67% of respondents want to know if something is created using AI, underscoring the need for clear labeling and communication from content creators.

AI opportunities and challenges for the entertainment industry

For media executives, the rapid integration of AI presents both significant opportunities and challenges. AI streamlines production processes, reduces costs, and enables the creation of more personalized and engaging content. However, it raises critical questions about the balance between automation and human creativity. It also questions the ethical implications of AI use, and the need to address consumer concerns around transparency and data privacy.

AI is reshaping how content is produced and consumed and redefining the relationship between creators and audiences. As the industry adapts, embracing AI’s potential while addressing its challenges is key to sustaining growth and innovation in the entertainment sector.

The HUB report is useful for media executives looking to stay ahead in this rapidly changing landscape. By tracking consumer sentiment and behavior, companies can better anticipate trends, address concerns, and leverage AI to create a more dynamic and responsive entertainment ecosystem.

As AI continues to evolve, media companies must navigate these complexities strategically. Investing in AI technologies that enhance viewer engagement while maintaining transparency and ethical standards is crucial. Additionally, fostering consumer education around AI capabilities and limitations helps bridge the gap between consumer awareness and understanding.