TLDR: A new report by Luminate Intelligence highlights the divisive impact of generative AI on the animation industry. While executives see it as a revolutionary tool for faster and cheaper production, many traditional artists view it as ‘dirty tech’ built on data theft, raising concerns about job security, ethical implications, and creative control. The report details audience attitudes, industry adoption rates, and the roles most likely to be affected.
The animation industry is currently navigating a significant divide over the integration of generative AI tools into its production workflows, according to a new ‘Animation & AI Report’ published by entertainment data analytics platform Luminate Intelligence on September 2, 2025. The report sheds light on how animation and visual effects studios are experimenting with AI amidst ongoing legal, ethical, and creative debates, and also explores audience perceptions of AI-generated content.
Industry executives and proponents of generative AI largely view the technology as a revolutionary force capable of accelerating production timelines and reducing costs. They draw parallels to Pixar’s innovation in 3D animation, which fundamentally reshaped the industry. Optimists believe that by making animation faster and cheaper, AI could lead to an increase in overall production, potentially freeing the industry from its reliance on established franchises. For instance, a half-hour TV episode currently averages 12 months to produce, and Pixar-style 3D animated features can take several years and cost hundreds of millions of dollars. AI is seen as a way to alleviate these stubbornly long production times and high costs.
However, this optimistic outlook is met with strong opposition from many traditional artists and animators. They often label generative AI as ‘dirty tech,’ arguing that it is built upon ‘data theft’ through the scraping of years of artists’ work for training data. This practice is not only seen as data theft but also as a form of ‘labor theft,’ leading to concerns about job security and the potential loss of creative control. Opposition is particularly vocal among concept artists, who have already experienced a decline in work due to the emergence of AI image generators in preproduction phases.
Key findings from the Luminate report include:
Audience Attitudes: Approximately 46% of film and TV consumers express discomfort with generative AI replicating deceased or living actors. In contrast, only 30% feel uncomfortable when AI is used for illustrations in animation.
Industry Adoption: While major studios, VFX houses, and animation companies are actively conducting R&D on AI tools, most currently restrict their use on client projects due to significant copyright and legal risks. The concept of ‘ethical data’ (licensed, owned, or public domain) is emerging as a crucial criterion for studios considering AI model adoption.
Impact on Talent: Animation experts predict that concept/storyboard artists (55%), VFX artists (50%), and game developers (43%) are among the roles most likely to be impacted by AI over the next two years.
Market Shifts: The report notes a decline in U.S. animated series commissions, which peaked at 225 in 2021 but fell to 171 in 2024 and a mere 71 in the first half of 2025. Despite this, adult animation has shown resilience, with streamers consistently ordering over 40 series annually since 2022.
Global Growth: Japan has solidified its position as the world’s second-largest animation exporter, with anime rapidly becoming one of the fastest-growing categories on streaming platforms.
Franchise Leaders: ‘Inside Out 2,’ ‘The Super Mario Bros. Movie,’ and ‘Moana 2’ were identified as the most successful animated franchise titles between 2022 and 2025.
Also Read:
- Sony’s 2025 Corporate Report Outlines Extensive AI Integration in Gaming and Anime Production
- PicLumen AI Unveils Advanced Generative Art Platform for Creative Industries in 2025
Netflix’s recently published GenAI guidelines reflect the industry’s cautious approach, allowing AI for development and ideation but emphasizing transparency, copyright risk avoidance, and the protection of human talent and creative output. The full ‘Animation & AI Report’ can be requested online from luminatedata.com.
