The 10 Most Interesting AI Stories to Watch in 2025: Tilly Norwood, Sora’s Big Salvo, Union Challenges, and More
As CES prepares to unveil another year of technological innovation next week, 2025 stands out as a pivotal moment in the history of artificial intelligence (AI). This year, AI has generated substantial corporate investments, driven stock market highs, and sparked intense speculation regarding a potential industry bubble.
The impact of AI has been particularly pronounced in Hollywood, where it has ignited deep discussions about efficiency, artistic potential, and the challenges to established business models. The entertainment industry faces a critical juncture as it grapples with these technological advancements.
1. Sora Salvo
The release of OpenAI’s Sora 2 last fall marked a significant development in generative AI video technology, raising concerns over copyright issues. Initially, copyright holders were informed they would need to opt out to protect their content. However, following public backlash over the use of figures such as Martin Luther King Jr. and Bryan Cranston in generated videos, OpenAI made some adjustments. Nevertheless, there is a growing sentiment that the influence of AI in the industry is irreversible.
2. Disney’s OpenAI Rewrite
In December, Disney made headlines with a landmark agreement involving OpenAI that evoked the famous line from Bill Murray in Ghostbusters: “Dogs and cats, living together, mass hysteria!” After initially withdrawing from Sora 2’s rollout, Disney opted to permit various characters for use in generative AI videos and invested $1 billion for an equity stake in OpenAI. While the deal may prove more symbolic than substantially impactful, it signals a shift toward pragmatism among entertainment companies concerning AI risks.
3. Enter Tilly Norwood
4. DeepSeek’s Teeth
The China-based company DeepSeek gained attention in January after it was revealed that it had trained its AI models for less than $6 million—a stark contrast to the hefty investments by U.S. firms. The sudden surge in popularity saw DeepSeek topping app store charts, raising concerns in U.S. financial circles about its competitiveness. The Nasdaq dipped by 3%, affecting valuations of major firms like Nvidia and Alphabet. By year’s end, DeepSeek remained a formidable player, despite fading from mainstream headlines.
5. Start-Up Gold Rush
Emerging companies such as Luma, Promise, and Runway collectively raised hundreds of millions of dollars, achieving valuations in the billions. Despite concerns of a market bubble, the momentum in AI entertainment continues unabated.
6. Above-the-Line Angst
The Writers Guild and SAG-AFTRA experienced a historic dual strike in 2023, partly fueled by uncertainties surrounding AI. As key unions prepare for negotiations on new contracts with studios in the coming months, experts Jonathan Handel and Mishawn Nolan highlighted the challenges posed by AI. Nolan warned that traditional business practices may no longer be viable, while Handel noted the complications introduced by synthetic performers like Tilly Norwood, given the absence of relevant language in existing contracts.
7. Creative Differences
Throughout 2025, a division emerged within the creative community between proponents of AI and those skeptical of its implications. Filmmakers such as George Miller and Paul Schrader advocated for the potential benefits of AI, alongside industry leaders like James Cameron and Reed Hastings, who expressed excitement regarding new creative possibilities. Conversely, a cohort of established directors, writers, and actors opposed the growing presence of AI in filmmaking, notably Guillermo del Toro, who passionately asserted that his film Frankenstein was fundamentally a human endeavor.
8. The Hostess with the Least-est
Amid these debates, Channel 4 in the UK ventured into a controversial experiment by revealing that the host of its documentary Will AI Take My Job? was entirely computer-generated. The network announced plans for additional AI-driven programming, further blurring the lines between human and machine in media.
9. Big-Screen Treatment
In an effort to explore AI in cinematic storytelling, Amazon MGM greenlit Artificial, featuring a star-studded cast led by Andrew Garfield. Directed by Luca Guadagnino, the film will delve into the dramatic events surrounding Sam Altman’s firing and subsequent re-hiring as CEO of OpenAI, further highlighting the technology’s societal implications.
