After five months of intense negotiation, a tentative agreement between entertainment companies and the unions representing film and television writers marked the end of the first work stoppage in Hollywood in over a decade.[1] The strike began on May 2, 2023, and came to an end on September 24, 2023, spanning a lengthy five months.
Terms and Implications
Perhaps the most interesting aspect of the new contract are the limits placed on the use of artificial intelligence (AI). Many industries are experiencing concern over the potential implications of AI use in the workforce and the effects it may have on the job market.[3]
The contract, also called the Minimum Basic Agreement (MBA), focuses primarily on “Generative Artificial Intelligence” (GAI), or AI that creates content based on patterns learned through existing content.[4] Because of this, much of the MBA centers around what work may be used to educate GAI.[5]
The first of the major terms is that GAI cannot be deemed a “writer,” as the term is defined by the MBA, meaning that it may not be used to write or rewrite original material.[6] GAI may be used in certain circumstances, but only under a plethora of restrictions.[7] Producers may supply writers with GAI material as long as they disclose this to the writers, the material will not be considered assigned or source material for the purposes of compensation and credit, and it cannot be used to disqualify a writer from eligibility for separated rights over their work.[8] Companies may develop their own practices regarding the use of GAI and require the use of GAI in order to detect plagiarism or copyright infringement issues.[9] All rights are reserved as to the “developing legal and regulatory framework around the use of GAI.”[10] Additionally, the new contract increases minimum wage, pension funds, and healthcare funds, and guarantees increased length of employment and size of writing teams, which had been shrinking greatly over recent years, thus creating more jobs for writers.[11] Overall, the contract is a major win for writers and provides important protections for their jobs as AI continues to develop, at least for the upcoming three years, after which the contract expires.
Long-Term Market Effects
In 2007, during the last production shut down, the Los Angeles economy suffered a nearly $2.1 billion loss.[12] That shut down lasted only 100 days.[13] Many industries and businesses were affected, especially those which support the film and television industry including drivers, caterers, and dry cleaners.[14] Experts are anticipating the Hollywood economy to lose between 4 and 5 billion dollars due to the strike.[15] As of early September, over 17,000 jobs had already been lost.[16] Additionally, the real estate market is taking a hit as many potential homebuyers have changed their minds due to the effects of the strike.[17]
Further, the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA), is not included in the deal reached between the WGA and entertainment companies, further exacerbating potential impacts. Similarly, SAG-AFTRA is looking to come to an agreement surrounding the current ambiguity on the extent to which AI may be used as a replacement for human actors. More specifically, a major point of contention exists as to the rights which actors’ have regarding granting the use of their image and likeness for AI generated performances to entertainment companies.[19]
Experts state that many employees across various industries are extremely apprehensive about the use of AI and its potential effects on the workforce.[20] They suggest that employers explain the benefits of AI and seek frequent feedback from their employees.[21] As the use of AI in the workforce is relatively new and the legal and regulatory landscape surrounding its use is constantly changing,[22] we are likely to see more and more legal battles arising around the use of AI in the near future.
[1] John Koblin & Brooks Barnes, What’s the Latest on the Writers’ Strike?, NY Times (Sept. 27, 2023), https://www.nytimes.com/article/wga-writers-strike-hollywood.html?searchResultPosition=1.
[2] Brian Contreras, Screenwriters Secured a for AI. For Actors, the Fight Could be Even Harder, LA Times (Sept. 28, 2023), https://www.latimes.com/entertainment-arts/business/story/2023-09-28/screenwriters-secured-a-new-deal-for-ai-for-actors-the-fight-could-be-even-harder.
[3] Kailey Johnson & Vanessa Roman, AI Concerns of WGA and SAG-AFTRA: What is Allowed?, JD Supra (Oct. 3, 2023), https://www.jdsupra.com/legalnews/ai-concerns-of-wga-and-sag-aftra-what-9887951/.
[4] Id.
[5] Id.
[6] Id.; Agreement on Key AI Terms Leads to Writer’s Strike Resolution: What Employers Need to Know, Fisher Phillips (Sept. 9, 2023), https://www.fisherphillips.com/en/news-insights/agreement-on-key-ai-terms-leads-to-writers-strike-resolution-what-employers-need-to-know.html.
[7] Kailey Johnson & Vanessa Roman, AI Concerns of WGA and SAG-AFTRA: What is Allowed?, JD Supra (Oct. 3, 2023), https://www.jdsupra.com/legalnews/ai-concerns-of-wga-and-sag-aftra-what-9887951/.
[8] Id.
[9] Id.
[10] Id.
[11] Alyssa Wilkenson & Emily Stewart, The Hollywood Writers’ Strike is Over- and They Won Big, Vox (Sept. 28, 2023), https://www.vox.com/culture/2023/9/24/23888673/wga-strike-end-sag-aftra-contract.
[12] Koblin & Barnes, supra note 1.
[13] Id.
[14] Id.
[15] Jennifer Liu, Hollywood Strikes Have Already had a $3 Billion Impact on California’s Economy, Experts Say: It’s Causing ‘A Lot of Hardship’, CNBC (Aug. 9, 2023), https://www.cnbc.com/2023/08/09/hollywood-strikes-have-had-3-billion-impact-on-california-economy-so-far.html.
[16] Paolo Confino, Hollywood Strikes are Bulldozing the Economy to the Tune of 17,000 Jobs and Forcing a Major Studio to Cut Earnings Guidance by $500 Million, Fortune (Sept. 5, 2023) https://fortune.com/2023/09/05/hollywood-strikes-economic-impact-jobs-warner-bros-discovery/.
[17] Krysta Fauria, Ripple Effects From Hollywood Strikes Reach Other Industries, PBS News Hour (August 29, 2023), https://www.pbs.org/newshour/arts/ripple-effects-from-hollywood-strikes-affect-other-industries.
[18] Brian Contreras, Screenwriters Secured a for AI. For Actors, the Fight Could be Even Harder, LA Times (Sept. 28, 2023), https://www.latimes.com/entertainment-arts/business/story/2023-09-28/screenwriters-secured-a-new-deal-for-ai-for-actors-the-fight-could-be-even-harder.
[19] Johnson & Roman, supra note 7.
[20] Agreement on Key AI Terms Leads to Writer’s Strike Resolution: What Employers Need to Know, supra note 6.
[21] Id.
[22] Id.
