TLDR: Award-winning Australian director Clayton Jacobson, in collaboration with Prompt Pictures, has announced the commencement of ‘SKARN’, Australia’s first generative AI horror feature film. The project aims to leverage AI to enhance creative freedom and overcome traditional filmmaking constraints, with official production slated for January 2026.
Award-winning Australian director Clayton Jacobson, renowned for his work on ‘Kenny’ and ‘Brothers’ Nest’, is set to embark on a groundbreaking cinematic venture with ‘SKARN’, Australia’s inaugural generative AI horror feature film. This ambitious project is a collaboration with Prompt Pictures, an innovative production company founded in early 2025 by producers Stephen Kearney and Ross Howden.
‘SKARN’ delves into the chilling narrative of Milo, a brilliant yet isolated teenager who unleashes a revolutionary, and ultimately horrific, artificial intelligence. The film is poised to showcase the transformative potential of generative AI in filmmaking, demonstrating how the technology can amplify human creativity while maintaining the narrative integrity characteristic of Jacobson’s acclaimed works.
Stephen Kearney, a producer at Prompt Pictures, emphasized the company’s vision, stating, ‘Prompt Pictures is about supercharging human creativity. Generative AI unlocks entirely new affordable creative possibilities we’ve never had before.’ This sentiment echoes the broader industry perspective on AI’s role in visual storytelling, with figures like ‘Avatar’ director James Cameron noting in 2024 that ‘The intersection of generative AI and CGI image creation is the next wave. The convergence of these two totally different engines of creation will unlock new ways for artists to tell stories in ways we could have never imagined.’
Director Clayton Jacobson expressed his enthusiasm for the new paradigm, remarking, ‘I’m excited to explore how AI can offer myself and collaborators more creative freedom to iterate throughout the entire storytelling process. So much of the traditional filmmaking process is about being told “No”. We are constantly forced to compromise our vision due to budgets, weather, schedules and many external restraints beyond our control. Generative AI is a paradigm shift in this regard, that will benefit film-makers and audiences alike and I can’t get out of bed fast enough to…’ This highlights the potential for AI to alleviate common production hurdles and foster greater artistic expression.
Grady Habib, Managing Director from Sandbox, also weighed in on the development, stating, ‘AI is an exciting new tool for storytellers. We’re thrilled to help deliver one of the first feature-length films where visual elements are predominantly created through AI by integrating traditional techniques to preserve cinematic depth.’
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Financing for ‘SKARN’ is currently being finalized, with official production slated to commence in January 2026. The project signifies a significant step forward for the Australian film industry in embracing advanced technological innovations.


