AI @ Disney

OpenAI shut down the AI video generation app Sora and canceled the $1 billion partnership deal, ending Disney's early venture into AI video streaming based on generative AI with licensed characters.

• BBC: OpenAI closes AI video app and cancels $1bn Disney deal

Disney invested $1 billion in OpenAI and became its first major content licensing partner for AI-generated short-form video with Disney characters via Sora; simultaneously began embedding generative AI into products and workflows; facilitated user-generated AI content on Disney+; initiated removal of unauthorized AI character uses; received public backlash on AI-generated content inclusion on platform.

• AP News: Disney invests $1B in OpenAI in deal to bring characters to AI video tool
• The Walt Disney Company: The Walt Disney Company and OpenAI Reach Agreement to License Content
• NBC News: Character.AI removes Disney characters after studio's warning
• Artificial Intelligence News: Disney is embedding generative AI into its operating model

Disney intensified AI R&D with projects using reinforcement learning for robotics and realistic autonomous characters (e.g., BDX droids); aggressive legal protection of IP with cease-and-desist to Character.AI; pursued integration of AI into mass media entertainment; collaborations with NVIDIA, Google DeepMind, and Disney Research.

• Variety: Disney Imagineering Employs AI to Usher In Robotics Advancements
• CNBC: Disney sent a cease and desist letter to Character.AI
• Reuters: Disney sends cease-and-desist letter to Character.AI

Disney explored AI-driven service improvements and creative workflows; actively collaborated with AI teams; faced lawsuits against Midjourney and other AI entities for copyright infringement; emphasized responsible AI use while protecting IP rights.

• HFTP: Beyond the Magic: How Disney's AI Strategy Is Redefining Entertainment
• Disney Careers: Lead Machine Learning Engineer (Artificial Intelligence) Role
• BBC: Disney and Universal sue AI firm Midjourney over images

CEO Bob Iger publicly acknowledged generative AI as a powerful technology and outlined Disney’s cautious but enthusiastic plan to incorporate AI in movies and TV with three ethical rules to protect creative integrity.

• The Hollywood Reporter: Bob Iger Says AI May Be “Most Powerful Technology That Will Emerge”
• Yahoo: Disney Will Use AI in Movies & TV but Has 3 Rules for It

Disney formed the Office of Technology Enablement, led by Jamie Voris, to coordinate AI and mixed reality efforts; announced use of AI to create immersive 3D worlds and realistic graphics; multiple media reports highlighted the company's strategic shift to embed AI responsibly.

• Vitrina AI: Disney New Office to Oversee AI and Mixed Reality
• Reuters: Walt Disney forms business unit to coordinate use of AI and augmented reality
• Deadline: Disney Creates Department To Explore AI And Other Technologies
• Variety: Disney Establishes Group to Oversee AI, Mixed Reality
• Forbes: 3 Big AI Changes At Disney – With More To Come

Disney announced the 10th year of the Disney Accelerator program, reinforcing commitment to exploring AI benefits in business and entertainment innovation.

• The Walt Disney Company: The Walt Disney Company Announces the 10th Year of Disney Accelerator

Disney replaced dozens of background actors with AI alternatives in films and expanded AI applications in animation, drawing mixed reactions and legal scrutiny.

• DisneyDining: Disney Replaces Dozens of Actors With Artificial Intelligence
• AI Expert Network: Case Study: The Magic of AI at Disney

Disney created a task force to study AI applications across the conglomerate aiming to cut costs and improve workflows.

• Reuters: Disney creates task force to explore AI and cut costs

Disney began exploring AI applications with a focus on animation and entertainment industry use-cases, marking the start of its AI journey.

• Emerj Artificial Intelligence Research: Artificial Intelligence at Disney