AI Is About to Make One-Third of Movies by 2026, And Hollywood Can’t Ignore It 🎬🤖

A quick snapshot before we jump in.

• Generative AI could power 10–30% of all long-form films and animations by 2026.

• AI already dominates short-form content, making up nearly 30% of short animations.

• Major barriers remain: inconsistent visuals, missing emotional nuance, and low resolution.

• Tencent is aggressively integrating AI into every stage of production.

• AI may revive big, expensive genres once considered too risky.

• Who: Sun Zhonghuai, VP of Tencent & CEO of Tencent Video

• What: Predicts AI will reshape the global film + animation industry

• When: Forecast for the next 1–2 years (by 2026)

• Where: 7th Hainan Island International Film Festival

• Why: AI slashes production costs, accelerates workflows, and unlocks previously impossible creative worlds

Let’s set the scene.

Sun Zhonghuai steps onto the stage at Hainan Island International Film Festival. The room is expecting a polite industry update.

Instead, he drops a narrative twist worthy of a blockbuster reveal:

Cue the collective gasp.

AI is no longer a side character—it’s auditioning for a lead role. And honestly? It's nailing the callback.

Short content is the popcorn of the digital age—endlessly snackable, ruthlessly fast, and always in demand.

Sun calls it the FMCG of entertainment:

Quick. Cheap. Efficient.

And guess who’s running the show?

• AI-native studios now make up ~30% of the short animation market

• Production cycles are shrinking

• Costs are plummeting

• Speed is king 👑

In other words, short-form content is already an AI empire.

AI may be talented, but it still struggles with the “human” part of human storytelling.

Here’s where it falters:

❌ Visual consistency

Characters morph subtly in long shots—like they’re glitching through parallel universes.

❌ Emotional nuance

Humans do micro-expressions.

AI does… approximate eyebrow movements.

❌ Resolution limits

Most AI outputs are still stuck at 1080p.

Theaters demand glorious 4K or DCI quality.

Despite the hype, AI isn’t fully ready for cinematic stardom. But Sun insists:

And that’s where things get exciting.

Remember those big, audacious story worlds that studios always loved… until they saw the budgets?

• Grand sci-fi sagas

• Age-of-Discovery epics

• Universe-spanning fantasies

• Complex historical worlds

AI could resurrect them all.

Because when production costs collapse, creativity expands.

It’s not just evolution—it’s renaissance.

Tencent Video isn’t admiring the future from afar.

They’re building it brick by digital brick:

• AI-driven concept design

• AI-powered pre-vis

• Automated rotoscoping

• AI-created LED virtual sets

• Collaboration with colleges to train “art engineers” and “tech artists”

This isn’t human vs. machine.

It’s human plus machine.

A hybrid creative ecosystem.

Sun offered a surprisingly poetic perspective:

We’re not just watching the future unfold.

We’re sitting in the front row.

🍿 And the previews look incredible.

Here’s your actionable playbook from this edition’s insights:

1. Start experimenting with AI creative tools today

Tools like Runway, Midjourney, Pika, and ElevenLabs are becoming core creative assistants—not optional extras.

2. Learn hybrid creative skills

Combine artistry + tech:

• Storyboarding

• Prompt design

• Pre-vis using AI

• Editing workflows built around generative tools

3. Position yourself as a “tech artist”

The filmmakers of tomorrow are polymaths.

Soft skills + technical fluency = career-proof.

4. Prototype big ideas you previously shelved

AI drastically lowers production barriers.

Test sci-fi trailers, world-building, or animated shorts without million-dollar budgets.

5. Follow the global trendline—not just Hollywood

China, India, and Southeast Asia are rapidly adopting AI-first film production.

Opportunities will multiply outside traditional studios.

6. Build a portfolio that demonstrates AI integration

Show you understand how to combine human taste with machine efficiency.

7. Stay curious and iterate fast

The next two years will move at breakneck speed.

Treat AI as part of your toolbox—not a threat.

At Think Ahead With AI, we’ve always believed that the next leap in innovation wouldn’t come from bigger systems — but from closer ones. Tools that don’t just live in the cloud, but meet people exactly where they work, think, and create.

That’s why the vision behind TAWAI Studio aligns perfectly with our long-standing mission:

💡 Make AI accessible, immediate, and deeply human-centered.

We’ve seen a clear shift in the industry:

• Businesses want real-time solutions, not waitlists.

• Teams want hands-on experimentation, not endless proposals.

• Leaders want AI they can touch, test, and trust — not theoretical slide decks.

TAWAI Studio embodies everything we’ve been preparing for.

And so, we’re not just observers of this future — we’re stepping into it.

Think Ahead With AI is now officially beginning its journey to implement the TAWAI Studio program, bringing mobile, on-demand, intelligence-powered innovation capsules to the teams and cities that need them most.

This means:

• On-site AI strategy sessions

• Instant prototyping pods

• Traveling automation labs

• Pop-up innovation spaces designed for rapid problem-solving

For us, TAWAI Studio isn’t just an expansion — it’s the next logical chapter.

A bold move into the future of AI consulting, where innovation becomes portable, personal, and profoundly faster.

This is how we stay ahead.

And how we help you stay ahead.

1. Runway ML

🎬 Best for AI video generation & VFX workflows

• Creates hyper-realistic video sequences

• Offers tools for green screen removal, motion tracking, and generative video

• Ideal for pre-vis, concept scenes, and rapid prototyping

2. Pika Labs

✨ AI video creation with cinematic flair

• Transforms text prompts into animated, stylized video clips

• Great for short-form content, test shots, and worldbuilding ideas

• Rapidly becoming a favorite for indie creators

3. Sora (OpenAI)

🌌 Long-form coherent video generation

• Produces extended, consistent, high-quality video

• Designed to maintain character continuity and story coherence

• Aimed at professional-grade filmmaking and animation

4. Wonder Dynamics

🧑‍🚀 AI character animation & replacement

• Automatically animates CG characters into live-action scenes

• Handles lighting, compositing, and motion matching

• Reduces cost and time for VFX-heavy projects

5. ElevenLabs

🎤 AI voice acting & voice synthesis

• High-quality human-like voices

• Useful for animation, dubbing, and rapid iteration on dialogue

• Supports emotional tone and multilingual output

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5. Google faces EU antitrust investigation over AI Overviews, YouTube

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Sanjukta Chakrabortty
Gen. AI Explorer