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| David Ellison, CEO of Paramount Skydance, wants to make tech a big part of his entertainment empire. Paramount Skydance |
As David Ellison officially takes the reins of the newly formed Paramount Skydance, his message to Hollywood is both direct and optimistic: artificial intelligence shouldn’t be feared it should be embraced.
“We’re not going to be afraid of tech, we’re going to embrace it,” Ellison said during a press event on Thursday. “I don’t think AI is a replacement for creativity.”
That statement comes at a time when the entertainment industry is sharply divided over the role of AI. On one end, companies like Lionsgate and AMC have struck public partnerships with leading AI firms like Runway, while Netflix has openly shared how it incorporates AI into its content development process. On the other side of the spectrum are studios like Disney, which have remained tight-lipped about their AI initiatives partly to protect their valuable IP and partly to reassure creative talent wary of having their likeness or voice used without consent. In fact, both Disney and NBCUniversal are currently suing the AI company Midjourney over alleged copyright violations.
A Technologist at Heart, Leading Hollywood's Next Chapter
Ellison, whose father is Oracle co-founder Larry Ellison, brings Silicon Valley DNA to his leadership role, and technology is central to his long-term strategy. The elder Ellison also helped finance the recent merger, giving the younger Ellison both capital and a tech-first mindset as he works to reshape Paramount Skydance for the future.
One of his immediate priorities is to unify the backend infrastructure of the company’s streaming platforms. Currently, Paramount Skydance operates three different streaming services, each with its own technology stack. Ellison wants to collapse those into a single stack “really quickly,” streamlining both operations and user experience.
But his ambitions go beyond the backend. He also envisions using AI to improve content discovery, making it easier for audiences to find shows and movies that match their tastes. On the content creation side, he sees AI as a valuable tool not a disruptive force.
AI as the New Animation Pencil: A Creative Comparison
To calm concerns from creatives, Ellison pointed to the evolution of animation in the 1990s as a historical parallel. When Pixar introduced 3D computer animation, many hand-drawn animators feared the technology would displace them. Instead, Ellison argued, it expanded their creative capabilities.
“There was an uproar over the notion that technology was going to disrupt the animators,” he said. “And Pixar would always say, ‘We’re just giving the animators their own pencil to create things you could never create before.’ And I think we’re in another one of those times where we’re going to see that level of shift.”
Empowering Bold Storytelling and Expanding Engagement
Ellison believes AI could actually lower the cost barriers to entry for big-budget filmmaking. Referencing films like the original Terminator, he noted that producing such ambitious projects has become significantly more expensive over time, making it harder for young filmmakers and storytellers to pursue bold, original ideas.
“That basically means that young artists and filmmakers actually can’t go out there and tell bold, original stories,” Ellison said.
He also touched on the potential for AI-driven audience engagement, describing a future where fans could interact directly with characters powered by sophisticated AI models. According to Ellison, this kind of immersive storytelling is “a lot closer than people realize.”
Still, while isolated examples exist where AI has helped cut production costs or enhance visual effects, there’s no industry consensus yet on how transformative it can really be. Studios like Paramount must also contend with declining revenue in traditional TV, mounting debt, and a streaming business that has yet to achieve global profitability at scale.
And concerns persist. A recent study commissioned by the Concept Art Association and The Animation Guild estimates that more than 200,000 Hollywood jobs could be impacted by AI over the next three years. The fear among many creatives is that these tools could eventually replace, not just assist, human artistry.
More Content, Smarter Tech, and Strategic Partnerships
Despite the challenges, Ellison remains focused on expanding the company’s streaming footprint. He emphasized plans to increase production of films and television shows to fuel the platform’s growth. The studio is also open to forming joint ventures with other streamers, signaling a pragmatic approach to scale and distribution.
At the same time, traditional linear television hasn’t been abandoned. Paramount Skydance executives affirmed their continued investment in broadcast and cable, citing Nickelodeon as a key property that plays a vital role in reaching families and younger viewers a demographic they say will remain a top priority.
Balancing Innovation and Caution
Ellison’s approach suggests a delicate balance: lean into technological innovation without undermining the artists and creators who define the soul of Hollywood. While some fear that AI will devalue human creativity, Ellison sees it as a new chapter in storytelling one where technology becomes an enabler, not a replacement.
“This is a pivotal time,” he suggested, “and like with any major shift, those who embrace change and learn how to use it wisely are the ones who will thrive.”
