GenAI can enhance and streamline every phase of the production of scripted content from story development and character creation to dialogue writing.It has also helped platforms drive users’ engagement through ranking and recommendation algorithms. GenAI tools can amplify this trend via creative AI platforms, such as automated video creation and editing. By offering creators real-time feedback and suggestions at the idea generation phase, genAI can help them refine their work as they go, thereby boosting the overall quality of content. AI-generated audience preference insights currently help long-form content creators (both scripted and non-scripted) optimize scripts, narrative structures and pacing. Real-time analytics and insights for live events allow producers to adjust on the fly and improve audience engagement during broadcasts. GenAI can potentially further enhance long-form content creation and make it even more efficient. It can enhance and streamline every phase of the production of scripted content – like movies, editorials, video games and commercials – from story development and character creation to dialogue writing, helping creators generate fresh ideas and reducing production time. In post- production, it can automate complex tasks like visual effects, 3D animation and computer- generated imagery, enabling the creation of hyper- realistic environments and characters at a fraction of the usual cost and time. For non-scripted productions such as live TV, concerts and sport, genAI can advance real- time content editing, highlight generation and multi-camera operations. Content creators can use conversational interfaces to automate time- consuming tasks like creating video clips from existing content; editors request edits and video assembly through natural language prompts, and the model processes and executes the tasks. Furthermore, genAI enables the continuous analysis of audience engagement data, ensuring that content remains engaging throughout the event. It thus enhances both the creative and strategic aspects of content creation and distribution. When it comes to monetization, AI has transformed advertising by boosting return on investment (ROI) through predictive analytics and real-time dynamic pricing. Predictive analytics uses machine learning (ML) algorithms to forecast consumer behaviour, helping media companies manage their digital inventory and deliver ads to the right audience at the right time. Dynamic pricing adjusts advertising rates based on demand, competition and engagement metrics, maximizing profitability for both advertisers and content platforms. GenAI is set to revolutionize media planning and buying by enhancing audience targeting through even more granular analysis of detailed audience behaviour patterns, including unstructured data. This helps marketers identify individual preferences and enables content-aware advertising. By using these insights and automating aspects of the creative process, genAI can optimize ad creation, targeting and distribution, allowing marketers and advertising agencies to develop hyper-personalized advertising campaigns. They can tailor ads that resonate on a deeper level with specific audience segments and place their ads more strategically, increasing the likelihood of conversions. AI already enhances consumer experience by delivering personalized content recommendations on streaming platforms, social media, search engines and media outlets, improving customer engagement and retention. It also enhances content moderation’s effectiveness and efficiency in supporting the detection and removal of harmful content. With genAI’s advanced contextual understanding of policies and community guidelines, moderation can go beyond static decision trees to better reflect the complexities of the real world. GenAI can expand the canvas of possibility for highly individualized content delivery and interactive and immersive experiences. This includes both virtual and in-person applications, like virtual assistants and intelligent agents, working along extended reality technologies. It also covers seamless ways to create and access content through conversational interfaces, such as generating images and videos or searching archives anytime, anywhere. In addition, genAI can increase the relevance of social media search results and, with intentional design choices, can enhance algorithms to encourage positivity and the emotional well-being of users and communities. Emerging trends and rapid technological advancements fuel optimistic outlooks for the global AI market in media, entertainment and sport. Revenues are projected to reach approximately $120 billion by 2032, with a compound annual growth rate of 26% from 2023 to 2032.5 However, high upfront costs, fundamental infrastructure gaps, particularly high data debt (e.g. low data quality, lack of accurate metadata) and unclear business value raise concerns about long-term profitability. This leads to a high AI project failure rate, estimated at 30% to 80%.6,7 Moreover, as discussed later, several challenges must be addressed to responsibly adopt the technology and ensure this revolution benefits humanity and enhances the creative landscape. Uniquely human elements, such as the conception of original ideas and the stories behind them, the emotional resonance, cultural nuance and moral judgement will remain essential. Human accountability and creative oversight will continue to play a pivotal role. In the future, creators and users will need to be educated to navigate evolving sensitivities around trust and information integrity, especially as younger generations bring different sensitivities around these concepts. Artificial Intelligence in Media, Entertainment and Sport 7

Artificial Intelligence in Media Entertainment and Sport 2025