Offense vs. Defense: Navigating AI Disruption in Entertainment

A few months ago, I met with executives from one of Hollywood's major studios. We were discussing the potential impact of AI on the entertainment industry - a topic that's been dominating conversations in boardrooms and on film sets across Los Angeles.

As we delved into the possibilities and challenges ahead, one of the executives leaned back in his chair and asked, "What technology do you have for tracking the use of IP and NIL in AI models? Is the platform built using any blockchain tools?"

This question, focused solely on defensive technologies, didn't surprise me. In fact, after dozens of conversations, it's reflective of how many in Hollywood are approaching the AI revolution – with a strategic focus on protection. I've encountered this perspective repeatedly across the industry: "A lot of people may lose their jobs, but we will be fine as long as we protect what's ours." It's a mindset that views AI primarily as a threat to be defended against, rather than a transformative force that could reshape our entire industry.

As I've grappled with these questions over the past year, I believe it’s likely our industry's approach to AI is imbalanced. We're overly focused on defense - on protecting what we have - at the expense of offense - actively shaping the future of our industry in an AI-augmented world.

Defining Defense and Offense in the AI Context

Defensive strategies are primarily focused on protection. They aim to safeguard existing assets, intellectual property, business models, and creative processes from potential threats posed by AI. These strategies often involve developing technologies and policies to prevent unauthorized use of content, maintain control over IP, and ensure proper attribution and compensation for human creators.

Offensive strategies, on the other hand, are about proactively engaging with AI to create new value. They involve leveraging AI capabilities to enhance creative processes, develop new business models, and explore innovative forms of content creation and distribution. Offensive strategies see AI not just as a tool, but as a collaborator in the creative process, opening up possibilities that weren't previously feasible.

It's important to note that these strategies aren't mutually exclusive. In fact, the most effective approach to AI in the entertainment industry will likely involve a careful balance of both defensive and offensive elements.

The Current Landscape: A Defensive Posture

To understand the current state of AI adoption in entertainment, it's helpful to categorize the approaches I've observed into three broad categories (from the book Power and Prediction): point solutions, application solutions, and system solutions. Each of these can be implemented with either a defensive or offensive mindset.

Point Solutions are direct, one-to-one substitutions that don't fundamentally alter existing systems. A defensive point solution might look like using AI for content fingerprinting to detect unauthorized use of copyrighted material. An offensive point solution could involve using AI for initial script analysis to generate creative ideas.

Application Solutions involve more substantial changes within existing paradigms. A defensive application solution might involve using machine learning to optimize digital rights management systems. An offensive application solution could use AI to personalize marketing campaigns, reaching audiences in new and more effective ways.

System Solutions reimagine entire industries around AI capabilities. A defensive system solution might involve developing a comprehensive, AI-powered content protection ecosystem. An offensive system solution could fundamentally rethink how content is created, distributed, and monetized in an AI-driven world.

From my observations, the vast majority of AI initiatives in Hollywood fall into the first two categories, with a heavy emphasis on defensive approaches. We're seeing a proliferation of point solutions and some exciting application solutions, but very little in the way of system-level thinking, especially on the offensive side.

This approach, while seemingly prudent, carries its own risks. By focusing primarily on defensive measures and incremental improvements, we may be leaving ourselves vulnerable to more radical disruption from outside our industry.

The Defensive Toolkit: Understanding Current Innovations

To fully grasp the current state of AI in entertainment, it's worth examining some of the impressive defensive technologies being developed. These innovations are crucial and necessary - but as we'll see, they're only part of the solution.

Content identification and authentication technologies, like those developed by Truepic, create digital signatures for media at the point of capture. Digital watermarking and rights management systems, such as those by Digimarc, embed imperceptible information into content. Blockchain initiatives like Mediachain are creating decentralized databases for media metadata.

On the legal front, we're seeing evolving approaches to AI-generated content, from the U.S. Copyright Office's stance on AI authorship to the EU's proposed AI Act.

These defensive measures are important and necessary. They help protect intellectual property, maintain trust in digital media, and create a framework for responsible AI development. However, they're not enough on their own to ensure our industry's success in the AI era.

The Asymmetry of Risk

At the heart of this issue lies a profound asymmetry of risk between embracing new technology and dismissing it. If we fully engage with AI and its impact on our industry turns out to be less transformative than anticipated, what have we lost? Some time, some resources, perhaps a few missteps along the way. But in return, we gain invaluable insights, develop new skills, and position ourselves at the forefront of technological advancement.

Now, consider the flip side. If we choose to dismiss AI, to stick with our traditional methods, and AI goes on to fundamentally transform the entertainment landscape, the consequences could be dire. We risk becoming obsolete, unable to compete in a radically changed industry.

This asymmetry of risk isn't unique to AI. We've seen it play out before with the rise of digital technology in film, the advent of streaming in television, and the emergence of social media in marketing. In each case, early adopters reaped enormous benefits, while those who clung to the status quo found themselves scrambling to catch up, often too late to reclaim their former prominence.

Consider the case of Netflix. When the company first pivoted from DVD rentals to streaming, many traditional media companies viewed it as a niche service, not a serious threat to their business models. They were focused on defending their existing revenue streams - broadcast rights, DVD sales, and cable subscriptions. Meanwhile, Netflix was playing offense, investing heavily in streaming technology and original content creation.

By the time traditional media companies fully recognized the threat and opportunity of streaming, Netflix had already established a dominant position in the market. The company had not only built a robust technological infrastructure but had also fundamentally changed viewer expectations and behaviors. Traditional media companies found themselves in a defensive posture, trying to catch up to a new paradigm rather than shaping it.

Rethinking Creation in the AI Era

My concern is that by focusing overwhelmingly on defense, we are not using our greatest leverage — our ability to create. This might seem obvious, but it holds profound implications for how we approach AI.

Consider this basic fundamental insight: For something to be defended, it has to exist.

Throughout history, human progress has been driven not just by protection, but by innovation and creation. The Renaissance wasn't solely about preserving classical knowledge; it was about using that knowledge as a springboard for new ideas and artistic expressions. The Industrial Revolution wasn't just about safeguarding traditional manufacturing methods; it was about inventing new ways of production that transformed society.

In the context of AI, this means that while we must certainly protect our existing creative works and intellectual property, our primary focus should be on leveraging AI to expand the boundaries of human creativity. We need to be actively involved in shaping the development and application of AI technologies in ways that align with our values and serve our creative goals.

This approach requires a shift in mindset. Instead of viewing AI primarily as a threat to be defended against, we need to see it as a powerful tool for amplifying human creativity. It's about using AI to create new forms of art, new business models, and new ways of connecting with audiences that we haven't even imagined yet.

Imagine, for instance, a filmmaking process where AI is used not just for visual effects or post-production tasks, but as a collaborative tool throughout the creative process. AI could generate multiple story variations based on a writer's initial concept, allowing filmmakers to explore a broader range of narrative possibilities. It could create real-time visualizations of scenes, helping directors and cinematographers plan their shots more effectively. During editing, AI could suggest different cuts based on emotional resonance or pacing, providing editors with new creative options to consider.

This isn't about replacing human creativity with AI. It's about using AI to enhance and amplify human creative capabilities. The filmmaker still makes the final creative decisions, but they have a powerful new set of tools at their disposal, allowing them to push the boundaries of their art form in ways that weren't previously possible.

Offensive Strategies in the AI Era

If our current efforts can be characterized as defense, what then would constitute offense? In the context of AI, going on offense means proactively engaging with the technology to create new value, rather than simply protecting existing assets. It's about bringing into existence the very things that our defensive measures are designed to protect. We can’t possibly know what the future will look like, but here are a couple hypotheticals that are in the realm of possibility. 

An offensive strategy might involve using AI to create entirely new forms of interactive storytelling. Imagine a narrative that adapts in real-time based on viewer engagement, creating a unique experience for each audience member. This could revolutionize how we think about storytelling, opening up new creative possibilities and business models.

Another offensive approach could focus on using AI to break down language barriers in content creation and distribution. AI-powered real-time translation and dubbing could allow content to reach global audiences more easily, potentially transforming how we approach international markets.

Balancing Act: Stakeholder Strategies for AI

As we navigate the complex landscape of AI in creative industries, it's crucial to understand how various stakeholders can balance offensive and defensive strategies. Let's explore some concrete examples:

For actors and performers, a defensive strategy might involve advocating for clear guidelines on the use of their likeness in AI-generated content. An offensive strategy could involve experimenting with AI voice cloning to create personalized content for fans. A balanced approach might involve partnering with an AI company to create an authorized digital version of themselves for use in specific projects, allowing them to explore new creative possibilities while maintaining control over their image and brand.

Writers and screenwriters could defensively push for copyright protection of their work against unauthorized AI use. Offensively, they could use AI writing assistants to enhance productivity or explore AI-generated plot ideas as inspiration. A balanced approach might involve using AI to generate multiple story outlines based on their core idea, then using their human creativity to develop and refine the most promising concepts.

Studio executives might defensively implement robust content protection systems to prevent AI-driven piracy. An offensive strategy could involve exploring AI-driven personalized content creation at scale. A balanced approach could involve developing an AI system that generates personalized trailers for each viewer based on their viewing history, while simultaneously using blockchain technology to ensure the integrity and provenance of their original content.

The Risk of Inaction

Perhaps the most compelling argument for a balanced approach of offense and defense is the risk of inaction. In the absence of proactive engagement from established industries, we create a vacuum. This vacuum will inevitably be filled – if not by us, then by actors who may not share our commitment to ethical practices or respect for creative rights.

Consider the music industry's initial response to digital streaming. Many established players focused on defending their existing business models, centered around physical album sales and digital downloads. They viewed streaming as a threat, employing defensive strategies like digital rights management (DRM) and legal action against platforms they saw as enabling piracy.

Meanwhile, tech companies like Spotify and Apple saw an opportunity. They went on the offensive, developing user-friendly streaming platforms that addressed consumer desires for convenience and access. By the time the traditional music industry fully embraced streaming, these tech companies had already established dominant positions in the market.

We're at risk of a similar dynamic playing out with AI in entertainment. If established industry players focus solely on defensive measures, we leave room for outsiders to define the future of AI in our field. These outsiders might not have the same understanding of creative processes, respect for artistic integrity, or commitment to fair compensation that industry insiders do.

Moreover, the pace of AI development is relentless. The AI we see today represents the worst, least capable versions of what this technology will become. The progress we've seen in just the past few years has been staggering, and there's every reason to believe this pace will continue or even

accelerate. This rapid progression means that waiting for clear signals of disruption is a mistake. By the time the impact of AI is obvious to everyone, it will be too late to position oneself at the forefront. The window of opportunity to shape the integration of AI into our industry is now, while the technology is still evolving and its applications in entertainment are still being defined.

As we stand at this crossroads, it's clear that the challenge we face isn't as simple as whether to embrace or ignore AI. The real struggle is against our own ingrained biases and the natural human tendency to resist change.

The truth is, we can't know with certainty what the future holds. But we can learn from history, understand our own biases, and make informed decisions based on the best information available to us. I believe the risks of dismissing AI in creative industries far outweigh the risks of embracing it - not because AI is guaranteed to revolutionize everything, but because the cost of being left behind if it does is so much greater than the cost of exploring and adapting even if it doesn't.

At Basa, the company I founded, we're working to build what we call an "infrastructure for offense." This involves creating the tools, frameworks, and knowledge base that will enable creative professionals to engage with AI proactively and strategically. We believe that by empowering creators to experiment with AI, we can help shape a future where technology enhances rather than replaces human creativity.

But this isn't just about one company or one approach. It's about our entire industry coming together to shape the future of creativity in the AI era. It's about fostering a culture of innovation, experimentation, and ethical consideration. It's about being willing to take risks, to fail, and to learn from those failures.

The question isn't simply whether you should embrace AI. The question is: How will you use your unique skills, your creative vision, and your industry knowledge to help shape the future of entertainment in an AI-augmented world?

The future of our industry isn't predetermined. It will be shaped by the choices we make now, by our willingness to step into the unknown and create something new. This moment is challenging, uncertain, and yes, even frightening. But it's also brimming with possibility.

Let's seize this opportunity to ensure that the future of entertainment is one where technology enhances rather than replaces human creativity. Let's build a future where AI is a powerful tool in the hands of skilled creators, where new forms of storytelling captivate audiences in ways we've yet to imagine, and where the value of human creativity is amplified rather than diminished.

The AI revolution in entertainment is here. The question is: Will you help shape it, or will you be shaped by it?