Entertainment and media companies are increasingly exploring generative AI, and the animation industry is grappling with divisive questions of how to integrate AI-powered tools into the creative process and production workflow.

That’s among the key conclusions in a new report, “Animation and AI,” from entertainment data provider Luminate. Animation is a proven genre for studios and streamers to invest in as a means to attract and retain both adult and kid viewers on their platforms. To wit, Netflix’s “KPop Demon Hunters” recently became the most-streamed original movie in Netflix history.

Per Luminate’s U.S. Entertainment 365 survey, anime film fans are the most likely to be frequent moviegoers, as the survey showed that 29% of audiences have seen three or more anime movies in theaters in the last three months.

Courtesy of Luminate

When compared to other film genres, anime topped all other movie categories. Fans of animation genres also proved to be among the biggest users of streaming platforms. Netflix, for example, accounts for 76% of users who use the streamer to watch animated content. Animated films and TV series are most pronounced for Hulu and Disney+ as well, per Luminate.

Although animation has become a point of interest for major studios and streamers, the use of generative AI within the animation industry remains divisive, largely due to differing views on its impact. According to Luminate, proponents of generative AI view it as revolutionary technology that can accelerate production and reduce costs, while others see potential challenges.

Critics and traditional artists regard generative AI as “dirty” technology and have raised concerns about its legal, creative and ethical implications. Issues such as data scraping, IP rights, loss of creative control, ethical boundaries and impacts on job security contribute to the divide. Luminate notes that concept and storyboard artists, VFX artists and game developers are perceived as among the most impacted roles over the next two years.

Click hear to read the full report.