Stock Markets February 4, 2026

Amazon's MGM Studio Tests AI Tools to Accelerate Film and TV Production

Small internal 'AI Studio' aims to lower costs and streamline creative workflows with a March closed beta and results expected by May

By Caleb Monroe AMZN
Amazon's MGM Studio Tests AI Tools to Accelerate Film and TV Production
AMZN

Amazon's MGM Studio has formed a compact AI-focused unit to develop tools intended to speed up and reduce the cost of making films and television. Led by Albert Cheng, the team will run a closed beta in March with industry partners and expects to share findings by May. The effort emphasizes human creative control while using AI to handle granular production tasks and integrate with existing creative software.

Key Points

  • Amazon's MGM Studio has formed a small, dedicated AI Studio to develop tools that speed up film and television production and reduce costs.
  • A closed beta of the AI tools will run in March with industry partners, and Amazon expects to share results by May; the team emphasizes human creative control throughout production.
  • The AI Studio will use AWS resources and work with multiple large language model providers, while stressing intellectual property protections and model-data safeguards.

Amazon is moving to adopt artificial intelligence across its studio operations to accelerate the filmmaking process and cut production costs, according to company statements on an initiative housed within its MGM Studio unit.

Veteran entertainment executive Albert Cheng is heading a small, focused group tasked with building AI tools designed to streamline pre- and post-production work. The unit, known internally as AI Studio, is structured to remain compact - described by Cheng as a "startup" operating under Amazon founder Jeff Bezos’s "two pizza team" principle, meaning the group is kept small enough to be fed by two pizzas.

The AI Studio's composition centers on product engineers and scientists, with a smaller complement of creative and business personnel. Cheng said the group plans to begin a closed beta in March, inviting industry partners to test its tools, and that the company expects to have results to present by May.


Objectives and rationale

Amazon frames the initiative as a response to rising production budgets that constrain how many films and series studios can finance and the level of financial risk they can assume. The company expects AI to expedite certain functions so that more cinematic projects can be produced at lower cost and with greater efficiency.

"The cost of creating is so high that it really is hard to make more and it really is hard to take great risk," Cheng said in an interview. "We fundamentally believe that AI can accelerate, but it won’t replace, the innovation and the unique aspects that (humans) bring to create the work."


How the tools will be used

Cheng described the studio's technical work as focused on bridging what he calls "the last mile" between consumer-facing AI capabilities and the detailed, director-level control required for cinematic content. Specific aims include improving character consistency across shots and ensuring seamless integration with industry-standard creative tools.

Amazon plans to leverage its cloud computing arm, Amazon Web Services, in developing the Studio's tools, and to collaborate with multiple large language model providers so creators will have a range of options for both pre-production and post-production tasks. Cheng emphasized that protecting intellectual property and ensuring that AI-generated content is not absorbed into other AI models are essential to the Studio's approach.


Industry response and internal context

The move to integrate AI into content production arrives amid public concern from some high-profile performers. The article notes that A-list actors such as Emily Blunt have expressed fears about the rise of AI - and specifically the prospect that AI-generated performers like the so-called AI actress Tilly Norwood could displace human jobs.

Amazon has sought to reassure creators that writers, directors, actors, and character designers will participate at all production stages, with AI positioned as a tool to augment creativity rather than replace it.

At the same time, Amazon has been encouraging broad adoption of AI across its divisions. Company officials cited the success of AI initiatives among the reasons for a major corporate reduction that cut about 30,000 corporate jobs since October - its largest layoff in the company's history - which included reductions at Prime Video.


Partnerships and early examples

The AI Studio is collaborating with a range of producers and creative companies as it develops and tests tools. Named collaborators include producer Robert Stromberg and his company Secret City; actor-producer Kunal Nayyar and his Good Karma Productions; and animator Colin Brady, formerly of Pixar and Industrial Light & Magic.

The studio, which opened last August, points to its series "House of David" as an example of how AI can be used in practice. For the show's second season, director Jon Erwin combined AI with live-action footage to create battle sequences, editing the two elements together to broaden the scale of scenes while lowering production costs.


Timeline and next steps

Amazon intends to run the closed beta in March and to present findings by May. During that period, the company will work with partners to evaluate tool performance, integration with existing creative workflows, and the safeguards needed to protect creators' intellectual property.

Cheng and the team characterize the Studio as focused on accelerating certain technical elements of production while keeping creative decision-making squarely in human hands. The effort aims to give filmmakers finer control over AI-driven processes without ceding artistic authority to automated systems.

Risks

  • Industry concern that AI could displace jobs in acting and related creative roles - this affects the entertainment sector and labor markets tied to film and television production.
  • Potential challenges around intellectual property and the risk that AI-generated content could be unintentionally absorbed into other models - this impacts studios, content owners, and cloud/service providers.
  • High production-budget pressures could lead to rapid adoption of AI tools before sufficient safeguards are in place - this could affect studios, streaming services, and the broader media supply chain.

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