Amazon is taking a decisive step to embed artificial intelligence deeper into the economics of Hollywood, aiming to rein in soaring production costs while reshaping how movies and television shows are made. The initiative, housed within its MGM Studios operation, reflects a broader industry reckoning as studios search for efficiency gains without alienating creative talent already wary of automation.

AI Moves From Cloud to Creative

Amazon plans to deploy AI tools across multiple stages of production, from early planning to post-production editing. The effort is being spearheaded by Albert Cheng, who leads a dedicated “AI Studio” team tasked with building proprietary systems tailored to filmmaking. The objective, according to Cheng, is not artistic replacement but operational leverage: automating time-consuming technical processes while leaving creative judgment firmly in human hands.

The move underscores how Amazon is leveraging its internal ecosystem. The AI Studio is drawing on resources from Amazon Web Services, giving MGM access to large-scale computing power and multiple large language model providers. This approach allows filmmakers to test different tools rather than being locked into a single AI model.

Cost Pressure Forces Innovation

Production costs across Hollywood have risen sharply in recent years, driven by higher labor expenses, complex visual effects, and increased competition for premium content. For studios like MGM Studios, controlling budgets has become as critical as securing hit franchises.

Amazon believes AI can help shorten timelines and reduce redundancies in areas such as scheduling, asset management, and editing preparation. By streamlining these workflows, the company hopes to make big-budget projects more financially viable while also improving productivity on smaller productions.

Testing With Industry Insiders

To validate its approach, Amazon is partnering directly with established creatives. The AI Studio is collaborating with producer Robert Stromberg and his Secret City, actor-producer Kunal Nayyar through Good Karma Productions, and veteran animator Colin Brady, formerly of Pixar and Industrial Light & Magic. These partnerships are designed to test AI tools in real production environments and refine them based on feedback from working professionals.

Amazon plans to open a closed beta for industry partners in March, with early results expected by May. That timeline suggests the company is moving quickly, but cautiously, signaling a desire to prove practical value before scaling adoption more broadly.

Balancing Innovation and Trust

The push comes amid ongoing tension in Hollywood over AI’s role in creative industries. Writers, actors, and directors have expressed concerns that automation could erode jobs or dilute artistic control. Amazon has been explicit that its tools are meant to support, not replace, creative talent, positioning AI as an assistant rather than an author.

This framing matters strategically. Studios that fail to win trust risk backlash from unions and talent, potentially offsetting any cost savings with labor disputes or reputational damage.

What Comes Next

If Amazon’s experiment succeeds, it could set a template for how AI is deployed across the entertainment industry: invisible to audiences, but transformative behind the scenes. For investors, the initiative highlights how AI is extending beyond cloud services and consumer tech into content economics. For Hollywood, it may mark the start of a new production paradigm—one where efficiency and creativity are no longer treated as opposing forces.