David Ellison Sees AI Reshaping Hollywood Production

Speaking on his first earnings call as CEO of the combined Paramount and Warner Bros. operation, David Ellison cast artificial intelligence as a major force in the company’s future. He compared its creative potential with the arrival of computer-generated imagery, which helped enable films such as Jurassic Park and Terminator 2.

Ellison said AI tools could make productions less expensive and help studios take risks on original projects. As an example of rising costs, he said the 1983 film The Terminator was made for $4 million, while recreating it in 2026, shot for shot, would cost $60 million to $70 million.

The company is developing its own AI tools. Ellison said they could speed up projects and change how the organization works, making content easier to produce. He also argued that technology would increase the value of distinctive franchises and live events, rather than diminish it. He described the combined company as owning 40 franchises worth at least $1 billion each and said its streaming services have more than 203 million subscribers.

Ellison paired his enthusiasm with a defense of human-made work, saying audiences would continue to value handcrafted storytelling in an era of low-quality AI content. He described AI as a tool for artists, not a substitute for them.

Paramount Skydance is seeking $6 billion in savings from the merger, including through corporate consolidation and wider use of AI workflows. Ellison said productivity should improve, while acknowledging he could not predict exactly how the technology would affect production.