Walt Disney is accelerating its research on company-wide utilization of artificial intelligence (AI) by establishing a dedicated AI task force (TF) and securing specialized personnel, according to major foreign media reports on the 8th (local time).
Walt Disney has viewed AI as a technology that can maximize cost-saving effects in the entertainment business, including content investment, and has been operating a dedicated AI team since early this year. Sources reported that this TF is fully committed to actively introducing AI technology paradigms into the business by developing AI apps independently and partnering with external startup technology companies.
Sources also revealed that they are researching ways to use AI as a tool to reduce production costs in content businesses that require astronomical production expenses, such as blockbuster movies like Indiana Jones and The Little Mermaid. Additionally, they are reportedly considering deploying small robots like the talking tree character 'Baby Groot' from Guardians of the Galaxy in theme park operations to enhance customer support.
Recently, 11 job postings were announced to recruit experts in AI and machine learning. According to the job postings, AI-based advertising systems are being built across all business divisions, including the movie and TV division’s online video service (OTT) division, the ESPN division operating sports media, and Disney Parks.
Bob Iger, CEO of Walt Disney, has made 'technology' a core future strategy alongside brand and global initiatives, promoting partnerships with global technical universities and research and development initiatives. As part of this, research funding was provided to the Swiss Federal Institute of Technology in Zurich and Carnegie Mellon University located in Pittsburgh, Pennsylvania.
As part of this effort, Disney boldly ventured into streaming and metaverse businesses as next-generation frontiers but has yet to achieve significant results. Disney entered the online OTT market in 2019, about ten years later than Netflix, which had already established itself in the market in 2007.
As a latecomer, Disney is focusing on reclaiming the market with its massive capital, but results have not followed. During the COVID-19 pandemic boom, competitors rapidly increased, intensifying competition, and Disney has been reporting losses exceeding $1 billion per quarter solely in its OTT business.
Disney also wound down its metaverse (extended virtual world) business, which was promoted as a new business pillar. In 2021, Disney claimed to own vast content and copyrights that could be realized in virtual worlds, stating "Disney is the metaverse," but after a few years, it ultimately surrendered, judging the business to be unviable.
Sources indicated that traditional media companies like Walt Disney seem to be driven by a sense of crisis that if they slow down the adoption of new technologies such as AI, they may eventually be left behind in the market.
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