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China fuels rush to turn AI video into an industry

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China fuels rush to turn AI video into an industry

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Shenzhen has emerged as a leading hub for AI filmmakers in China, attracting various local governments wanting to establish tech clusters. Amid rapid growth in AI-generated content, the industry faces the risk of oversupply and declining value. While production costs for AI films decrease significantly, concerns arise regarding copyright infringement and originality. Some consumers have expressed dissatisfaction with AI content and efforts to define its regulations are ongoing.

When Zhu Zhili was looking for a base to set up an artificial intelligence film studio in China two years ago, there was just one clear choice: the southern city of Shenzhen with its vast tech ecosystem. This year, AI filmmaker Zhu said he has fielded calls from officials in cities and industrial parks across China, all with the same pitch: bring your AI film business here. "I am approached every day by a range of cities, from major metropolitan areas to smaller localities," Zhu said, "hoping we can establish either technology or the company there."

Those appeals reflect a major push by China to embed artificial intelligence into every corner of the economy - including the latest movies showing at cinemas. Local governments have responded by promising to build tech clusters and offering subsidies to AI filmmakers and startups. That is straight out of a familiar industrial policy playbook, treating AI-generated content the way China built electric vehicles, solar panels and robotics into globally competitive industries. The result is a fast-emerging industry of AI filmmakers, studios and streaming platforms in China seeking an early lead in production techniques and distribution.


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