Kevin Reilly spent more than three decades overseeing the television fixtures that defined our culture, from Glee to Samantha Bee, Hacks to The Office.
So when he says a shift is happening, it’s worth paying attention.
On Wednesday the former NBC and Fox executive, 63, announced that he’s stepping back onto the Hollywood stage after five years away — only instead of returning to a big media company he’s joining Kartel, a little-known AI startup out of Beverly Hills, as its CEO.
Kartel is not developing programming — Reilly is leaving that behind — and it’s also not developing models; that’s for the tech-heavy companies like Runway and Luma AI. Instead it’s serving as a kind of intermediary between Silicon Valley and Hollywood, helping the latter zoom forward with machine-based video-generation – or hastening the demise of physical production, if you’re the more cynical sort.
As president of entertainment at NBC Reilly helped lobby for 30 Rock, Friday Night Lights and America’s Got Talent; he would take the same role at Fox, where Brooklyn Nine-Nine was among his passion projects. He then spent nearly seven years Turner, culminating in a role that saw him launch HBO Max. So facilitating companies’ transition to producing scenes with AI might be…unexpected.
But if Reilly’s move is surprising, it is also of the moment, when everyone from junior assistants to veteran presidents wonder what will become of an industry beset by technological change, unsure whether to fight or lean in (or jump ship like he just did). Reilly’s move almost serves as an HR-flavored metaphor for an industry as it pivots to the unknown.
We asked Reilly how he was thinking about it — what motivated his move and why he believed many of his former colleagues were endangering their livelihoods by fighting AI. The conversation was edited for brevity and clarity.
First, I think a lot of readers want to know: how have you been spending your time? Outside of an advisory board or two, we haven’t really heard from you since you ended up on the wrong side of that AT&T-Warner shakeup in 2020.
It’s been one of the best chapters of my life. Those big jobs are great but they’re 24/7, particularly with the winds blowing in the marketplace, the consolidation and corporate upheaval. I never had command over my own schedule. To be able to wake up and say “how am I going to spend my time, to get remarried, to open up my life” — it’s all been great. Kind of “so this is how people live.” Not “what have you done for me lately.” I was there for the last of the good days of Time Warner [beginning in 2014] but then it was really a hang-on-for dear-life situation with new management every other year. It was brutal.
Have you been trying to get back to a Hollywood executive suite?
Back in the old days you got a big fat deal and an office on the lot and a big development fund. And of course that’s not available anymore. So what do you do? I’ll be honest. There were days I thought I’d shot myself in the foot. I never said retirement; I was constantly trying to press on the next big thing. And at certain points things went pretty quiet and I thought “have I done this? Have I taken myself out of the game?” It soon became clear I was not going to go back to the executive suite. And as much as in my life I learned to trust the universe to lead me to where I’m meant to be, there were days when I said “OK universe, now would be good.”
That must have been bracing. I mean, I know people don’t tend to cry over out-of-work executives with rich compensation packages, but any of us can relate to feeling marginalized.
It was like that. A lot of people who are successful in whatever they do are used to bending the universe to their will, and then to see that the universe has its own plan — that was hard. There were times I was sure that in a couple of weeks I’d be back to work and for whatever reason it didn’t happen — it blew up over financing or went sideways at the eleventh hour. And I’d have to say “OK, next year I guess I’m going to be doing something different than I thought.” But then a funny thing happened. As the industry went into more of a defensive mode it started to become less of feeling sorry for myself and more “how do I find the next wave, how do I feel what I felt earlier in my career where I was really doing something of significance culturally?” I didn’t think I had the skill set to, you know, build foundational models or anything like that. But I had a relationship with [Kartel co-founder] Luke Peterson. And he said “why don’t you come in and see what we’re doing?”
So how did that casual suggestion lead you here, to becoming an AI CEO?
I’ve had very different experiences trying to be at the forefront of culture. Some of my earliest days were entrepreneurial, at FX, where it was a ragtag operation and we had shag carpet from the 70’s and office chairs that didn’t match. And then at the other end was the multibillion dollar business and high-stakes game of trying to get HBO Max off the ground. I thrive in both but there was something about the startup world. Luke had pivoted to AI with early visions of Kartel but now he was saying “we’re at a stage where we need specialization, you need to go in and figure out a way how to absorb it into a corporate structure.” Because you can’t just onboard AI; there are a lot of individual tools and it can be massively confusing and very unsettling. And I thought “If I can be part of the solution, then I’m again driving culture.” Brand culture — the endgame is sometimes different than just mindblowing content like we had with The Office. But it felt like I’d be part of a wave, part of having an impact.
How do you see Kartel? Is it a tech company or something else?
We’re one-part consultancy and one-part tech company. This is a new category, a new discipline that wasn’t possible before. We have systems that can be built around what’s possible. We can get organizations excited to see the possibilities of AI and layer them in and not see it as overly complicated or a threat. Let the studio be the studio. We can plug into the machine and help drive the culture that way.
So what exactly will Kartel do that couldn’t be done by the studios or ad agencies themselves?
Well if you look at workflows there are a lot of ways you can do outputs that are studio quality — just look at Sora. But the thing is while it’s an amazing tool, if you want to have something truly reliable then getting the product to work close enough is not good enough. You need quality control for those outputs.
It can’t be the roulette we’re used to for video-generation, in other words.
Exactly. You need precision. So we started realizing that the ability to spin up workflows was where we wanted to be. Where it used to be that it took a lot of human labor and a lot of time, you didn’t need to do that anymore. I’d sit at meetings in my old jobs and [a producer] would say something and we’d be like “great conceptual idea, how long would it take?” And we’d hear “six months.” Because you can’t just, say, blast a spaceship to Mars. It was a very cumbersome process to shoot it or have it rendered or whatever you needed. And we’d say “But we need it next month!” It all can feel unnecessarily costly and of course you can’t really iterate on it. And now with AI what we could do is get it all done faster. We didn’t want to become an AI-powered studio — that didn’t seem like a long-term play for a company like ours. But we can spin up a custom-solution and build it out and monitor it for you. We could iterate seven days a week instead of waiting. And you’re learning for your brand or for your studio and constantly improving.
And you see this as a play for Madison Avenue or is this for Hollywood?
I think it’s both. Obviously it’s about brands — there’s a Publicis use case. It’s so hard to get consumers’ attention and now there are ways to tailor your message [individually] to reach them in a way you never could before. You can adjust messaging in a saturated culture with more precision. But there’s also a lot we could do for Hollywood. This isn’t a one-off thing to do a minute here and there in a movie; it’s doing it for a series on an episodic basis. It’s building AI into the workflow.
Is it weird though to try to sell some of this to your old colleagues when pretty much all their companies are currently suing an AI firm?
The beauty is the business is not such that we have to make giant declarations about an entire company. There were will be departments that use it for very specific things and then maybe it scales up. Everyone could do it differently.
Talk a little more about the iteration — you hear that a lot with AI in Hollywood. What does that mean in practical terms?
When I was trying to convince people up the food chain about The Office and I would hear back “this Michael Scott isn’t likeable” and I’d say “trust me, they’ll like him.” Or, “their office seems like a depressed place” and I’d say “it is depressed but it’s funny.” And I would just try to convince them. But now you have the ability to try to do different things with the models. And then you can present [the video] internally and see what’s working and what isn’t in a way you never could before.
When you talk about this in terms of speed it sounds persuasive. But it does entirely change — really, greatly reduce — the sets and shoots that are the lifeblood of this business. How do you counter those who say that you’re pushing Hollywood off the physical production it has done so well and eliminating not just jobs but a whole art form?
Well first we are paying a human being — it’s not a just a fake image; it comes from a live actor who we’re paying. But the bottom line is, there are budget constraints for many productions and that’s a challenge. Look, there will always be a Tiffany-level artisanal cinema made in the most traditional sense — I see that art form thriving forever. I just think there will be other outputs, other expressions, that we’re going to find in this hybrid environment.
But you get why that hybridity makes many working people in Hollywood uncomfortable.
I do. The ability to jump ahead through the process — it might mean you don’t need those four people anymore to do that thing. There’s going to be a displacement through this. I was very fearful about that that. But you also will be standing up people to do things that have never been needed to be done before. Think about it in terms of other technology. When I was a kid you’d have to pull the phone cord and drag it into your room if you wanted privacy. And now you say that to a younger person and they look at you like they have no idea what you’re talking about. But we moved on and that was OK. Or flying a plane — pilots used to fly them visually and now they fly them with instruments. The way we implement technology changes. There’s going to be growing pains but I see this as more of a hyped-up version of the Internet in the early days. You can fight with YouTube to get your videos taken down. Or at a certain point you can just realize they’re here and work with them.
What would you say to the executives who are saying we’re going to hold off and preserve this economy as long as we can?
Our industry is tricky. Generative AI goes right to the heart of what we do. It’s yet another tech tidal wave hitting. And we’ve had a few. It’s hard for those still in power to try to figure their way through. But the worst thing you could do is kick the can down the road, is sit back with your arms folded. Kartel is here to say “how do we help educate you; how do we help you fix what the tidal wave would break?” You know, my old colleague Doug Shapiro [former chief strategy officer at Turner] wrote on Substack that filmed entertainment is a cheat on the human brain. This is not growing a tree where nature is taking its course. We have to manipulate people’s brains with tools we have. And while I love storytelling and actors and I don’t want to replace any of that let’s not get on too high a horse. The entire thing is a cheat to amuse and engage human beings. Generative AI is another tool of empowerment to amuse and engage.
And if it still didn’t convince them?
Look, a lot of people in Hollywood are walking through the woods right now. There’s an extraordinary moment with this tool, with this lifechanging tool, but how we do make decisions to deploy it on our behalf; where do we draw the line between it empowering us and debilitating us? We have to be honest about what’s happening but also make decisions that will define an era. I want to be a part of that. I think as many people as possible should be a part of that.