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AI is reshaping media production: New MIT report reveals the challenges ahead

The report emphasizes that hardware, infrastructure, and connectivity will be critical to next-generation digital experiences

byKerem Gülen
February 13, 2025
in Industry
Home Industry

A new MIT Technology Review Insights report highlights how artificial intelligence is transforming the media and entertainment industry, enhancing content production while also posing challenges for businesses adapting to rapid technological shifts.

The report, “Designing the future of entertainment,” produced in partnership with Nokia, is based on insights from industry executives, startup founders, and analysts from organizations including PwC, Seneca College, StoryFit, Databricks, Twyn, Enders Analysis, MIT Sloan School of Management, and Nokia.

According to the findings, AI is being increasingly integrated into media production workflows. Current use cases include:

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  • Predictive audience analytics to enhance content targeting.
  • Virtual production for immersive storytelling.
  • Automation of tasks such as editing, captioning, and dubbing.
  • Efficiency improvements in areas like animation and post-production.

While AI is expanding creative possibilities, it also introduces concerns over intellectual property, monetization strategies, and workforce adaptation.

Technology infrastructure key to next-gen content

The report emphasizes that hardware, infrastructure, and connectivity will be critical to next-generation digital experiences. Improvements in edge computing, device processing power, and high-speed connectivity will support interactive and multi-user content across gaming, esports, music, and emerging digital platforms like the metaverse.

Digital media standards will also play a crucial role in scaling AI-driven content and ensuring seamless interoperability across formats and devices.

Despite being early adopters of new technologies, media and entertainment companies often struggle to adjust business models during technological disruptions, the report notes. Success in the AI-driven era will require:

  • New partnerships that go beyond traditional industry alliances.
  • Exploration of alternative revenue models that leverage AI-driven insights.
  • A balance between innovation and ethical considerations in content creation.

Arvin Patel, chief licensing officer new segments at Nokia, noted that media brands must actively embrace AI: “They should forge new alliances and think creatively about routes to monetization.”

The report stresses that AI should be viewed as a partner in creativity rather than a replacement for human ingenuity.

“The media and entertainment landscape is entering a transformative era where AI is no longer just a tool but a catalyst for creative reinvention and operational efficiency,” said Laurel Ruma, global director of custom content at MIT Technology Review. “Success in this new era will require balancing experimentation with responsibility.”


Featured image credit: Google DeepMind/Unsplash

Tags: AIMedia

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