‘Significant challenges' in use of AI within UK screen sector
High energy consumption and carbon emissions, and the risks to creative content around biased data, are also described as being of concern.
The report, which has been carried out in partnership with CoSTAR universities Goldsmiths, Loughborough and Edinburgh, analyses how the screen sector is using and experimenting with rapidly evolving generative AI technologies.
It warned that the 'primary issue' was the use of copyrighted material – such as hundreds of thousands of film and TV scripts – in the training of generative AI models, without payment or the permission of rights-holders.
'This practice threatens the fundamental economics of the screen sector if it devalues intellectual property creation and squeezes out original creators,' the report said.
But it added that the UK's strong foundation in creative technology – as it is home to more than 13,000 creative technology companies – means that the UK screen sector is well positioned to adapt to the technological shift.
The report – titled AI in the Screen Sector: Perspectives and Paths Forward – said generative AI promises to democratise and revolutionise the industry, with the BBC, for example, piloting AI initiatives.
Meanwhile, projects such as the Charismatic consortium, which is backed by Channel 4 and Aardman Animations, aim to make AI tools accessible to creators regardless of their budget or experience.
It said this could empower a new wave of British creators to produce high-quality content with modest resources, though concerns about copyright and ethical use remain significant barriers to full adoption.
The report sets out nine key recommendations it suggests should be addressed within the next three years to enable the UK screen sector to thrive in using AI.
These include establishing the UK as a world-leading market of IP licensing for AI training, and embedding sustainability standards to reduce AI's carbon footprint.
It also calls for structures and interventions to pool knowledge, develop workforce skills and target investments in the UK's creative technology sector, while it urges support for independent creators through accessible tools, funding and ethical AI products.
The BFI's director of research and innovation, Rishi Coupland, said: 'AI has long been an established part of the screen sector's creative toolkit, most recently seen in the post-production of the Oscar-winning The Brutalist, and its rapid advancement is attracting multimillion investments in technology innovator applications.
'However, our report comes at a critical time and shows how generative AI presents an inflection point for the sector and, as a sector, we need to act quickly on a number of key strategic fronts.
'Whilst it offers significant opportunities for the screen sector such as speeding up production workflows, democratising content creation and empowering new voices, it could also erode traditional business models, displace skilled workers, and undermine public trust in screen content.
'The report's recommendations provide a roadmap to how we can ensure that the UK's world-leading film, TV, video games and VFX industries continue to thrive by making best use of AI technologies to bring their creativity, innovations and storytelling to screens around the globe.'
Professor Jonny Freeman, director of CoSTAR Foresight Lab, said: 'This latest CoSTAR Foresight Lab report, prepared by the BFI, navigates the complex landscape of AI in the screen sector by carefully weighing both its transformative opportunities and the significant challenges it presents.
'The report acknowledges that while AI offers powerful tools to enhance creativity, efficiency, and competitiveness across every stage of the production workflow – from script development and pre-production planning, through on-set production, to post-production and distribution – it also raises urgent questions around skills, workforce adaptation, ethics, and sector sustainability.'
CoSTAR is a £75.6 million national network of laboratories that are developing new technology to maintain the UK's world-leading position in gaming, TV, film, performance, and digital entertainment.
Last month stars including Sir Elton John, Sir Paul McCartney and Sir Ian McKellen, wrote a joint letter to Sir Keir Starmer, urging the Prime Minister to introduce safeguards against work being plundered for free.
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