A bill in New York aims to bar media companies from getting a tax credit if they use AI to displace jobs.
AI, an opportunity and a threat for the media sector
Artificial intelligence (AI) is increasingly used in the media sector, especially by the giants Disney et NBCUniversal. Recently, the use of AI for the credits of Secret Invasion by Marvel Studios had been controversial. These companies see in AI an opportunity to create innovative and personalized content, while reducing their costs and increasing their profitability.
But AI also poses a threat to human workers, who could be replaced by programs capable of performing creative or technical tasks. That’s why a bill (SB 7422) was introduced in New York State last June that seeks to protect film and television jobs from AI.
This bill proposes to prohibit companies from taking advantage of the film and television production tax credit if they use AI to displace jobs. This tax credit, which represents 30% of eligible production expenses, is highly coveted by media companies, which use it to finance their productions made in New York State.
Disney and NBC, the main concerned by the legislation on AI
According to an article by Bloomberg Law, Walt Disney Co. et NBCUniversal pay lobbyists to monitor the progress of this bill, without however taking a public position. The two companies have received millions of dollars in tax credits since the start of 2022 for several productions made in New York State, such as ‘The Eyes of Tammy Faye‘ or ‘Saturday Night Live‘.
Disney et NBCUniversal expressed their interest and optimism for AI, while acknowledging the legal and ethical challenges it poses. Disney CEO, Bob Igertold investors in May that he was ‘optimistic‘ about AI, but that it was also necessary ‘be extremely careful‘ with intellectual property. NBCUniversal pioneered the use of AI in advertising in 2019, and continues to explore the possibilities offered by this technology.
The New York bill, a sensitive subject in Hollywood
The New York bill is part of a broader debate over the impact of AI on jobs and taxes. The deputy Demond Meeks, which sponsored the bill, said it wanted to protect the ‘dignity’ of workers in the face of the growing threat of AI. He also pointed out that his bill could serve as a model for other states, which could follow its example.
The New York bill has not yet been voted on by lawmakers, nor commented on by the governor Kathy Hochulwho took office after the resignation ofAndrew Cuomo. Hochul, however, spoke out in favor of extending the film and television tax credit in the state budget approved in May, while saying she could strike a balance between the needs of businesses and those of workers.
The stakes are therefore high for Disney et NBCUniversal, which may need to revise their strategy for using AI if the New York bill passes. Which would be a good thing. This subject is all the more sensitive as Hollywood screenwriters and actors have been on strike for several weeks now, to demand an increase in their remuneration and guarantees concerning the use of AI.
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2023-08-01 20:44:43
#Disney #NBCUniversal #pay #lobbyists #York #EklectyCity
