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Shaudi is a Seattle-based musician, theatre artist, writer and social media marketing specialist. She holds degrees from Berklee College of Music and the University of Washington School of Drama.
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AI is opening doors for independent producers to work faster, stretch budgets, and take on more ambitious projects—but only if they navigate the compliance and risk implications carefully.
Legal, labor, and ethical guidelines around AI remain complex and evolving, leaving many producers unsure of how to adopt it responsibly. This article recaps key takeaways from “The AI Moment: Compliance, Creativity & Opportunity for Independent Producers,” an Independent Film & Television Alliance (IFTA) webinar presented by Wrapbook.
The panelists give independent producers practical guidance on how to use AI safely, protect their work, and make informed decisions across development, production, and post.
Before diving into the highlights below, you can watch the full on-demand recording of “The AI Moment: Compliance, Creativity & Opportunity for Independent Producers.”
The conversation covers legal guardrails, union considerations, creative applications, and real-world use cases in greater depth—including audience Q&A that expands on many of the topics summarized here.
If you’re evaluating how AI fits into your own development, production, or post workflow, the full discussion offers valuable nuance and context beyond this recap.
Let’s meet our panel of experts sharing their insights into AI’s impact on filmmaking—from legal and financial considerations to creative applications.
Ali Javid is the CEO and Co-founder of Wrapbook, the force multiplier for production finance and accounting teams. Wrapbook’s platform combines next-generation AI-powered tools with expert human support across payroll, labor compliance, and production finance.
Daniel Gordon is the CEO of Moonmax, an AI-native film, TV, and commercial production company. He also serves as Head of AI at Raindance Film Festival, where his work includes projects like Raindance’s first AI filmmaking course and AI-related industry activations with partners like Netflix, Canon, and the British Film Commission.
Schuyler “Sky” Moore is a veteran entertainment lawyer and author of the widely regarded The Biz: The Basic Business, Legal, and Financial Aspects of the Film Industry in a Digital World, now in its 5th edition. Named to The Hollywood Reporter’s "Top 100 Power Lawyers" list, Moore works with high-profile clients, including producers who regularly use AI in their projects.
Panel moderator Todd Terrazas is the Founder and President of the AI LA, one of the world’s largest AI communities. He is also the Founder and CEO of FRBC.ai, a venture studio building the next-generation “studio stack” for AI-native storytelling, and Co-Creator of AI on the Lot, a flagship Los Angeles conference at the intersection of AI, media, and entertainment.
Jonathan Yunger is the Co-Founder and CEO of Arcana Labs, a creative technology studio building artist-first AI-driven tools for digital media production. Yunger is also President of Millennium Media, a long-running independent film company known for projects like The Expendables film series.
The panel highlighted what AI can do for independent filmmakers today, starting with one of the industry’s most pressing challenges: reduced budgets. The discussion underscored that AI is one of the few tools available to independent producers that can increase production value without adding cost.
Because AI is relatively affordable, it allows filmmakers to bring story ideas to life that might previously have been scaled down. Instead of cutting sequences for budget reasons, producers can now use AI tools to make creative choices purely in service of the story.
AI can be especially useful for genre films, where it can serve as a cost-effective alternative to traditional VFX. It’s also transforming how filmmakers handle locations: reshoots that once required expensive travel and fees can now use AI to create virtual versions of previously shot locations, saving both time and money.
Beyond production, AI can help improve the quality and lower the cost of assets used to pitch and sell a project. The savings can then be reinvested in other areas of the production that are chronically underfunded—such as expanding accounting or production support teams.
AI is increasingly integrated into projects of all kinds—from feature films to podcasts to commercials—across every phase of production.
According to the panelists, development is the first production phase where AI saw widespread adoption. Large language models (LLMs) like ChatGPT are commonly used to generate pitch deck copy, draft one-pagers, and assist with early screenplay development. Likewise, image generators can support concept art, storyboarding, and visual references for financing meetings.
At the same time, the speakers emphasized the importance of human-authored scripts and storyboards for both copyright protection and creative quality control. AI as it currently exists can help bring visual concepts to life, but it cannot fix weak storytelling. Strong ideas and scripts still require meaningful human input.
Once a project moves into production, AI tools are being used both creatively and operationally.
On the operational side, AI tools—such as those available on Wrapbook’s platform—can simplify and accelerate budget analysis. Teams can get quick answers to questions like, “How much have we spent on travel for actors?” AI can also support accounting and payroll workflows, helping finance teams build more realistic and responsive budgets and streamline processes.
Creatively, the panelists are seeing artists use AI-generated establishing shots and inserts, and replace expensive on-location shoots or reshoots with reference-based location generation. Using AI in place of more costly traditional VFX has become increasingly common, particularly for independent filmmakers, helping raise production value while lowering costs.
Still, the group pointed out that human talent remains critical. The skill of the filmmaker using an AI tool significantly impacts the quality of the output. An experienced VFX artist, for example, can leverage their expertise to prompt AI tools more effectively and produce higher-quality results.
Emerging, though less common, is the use of synthetic AI “talent” and digital “twins” of performers.
In post-production, AI is often used for assistive tasks, including sound applications such as synthetic voice generation. AI tools are also gaining traction in animation, though panelists again underscored the importance of creating human-authored animatics before generating final imagery to strengthen copyright protection.
Across every stage of production, the panel emphasized the importance of choosing tools carefully.
Not all AI platforms are created equal. Testing different tools before committing—and seeking peer recommendations—can significantly affect both output quality and risk exposure. Panelists suggested experimenting with platforms like Freepik or Arcana, which allow users to test multiple AI tools within a single environment.
Because AI in film is still relatively new, even experienced, responsible independent producers may not fully understand the legal, union, and financial boundaries involved.
Engaging legal, union, and accounting professionals early is the most effective way to stay compliant and protect your work. At the same time, educating yourself on the key risks can help you ask better questions and avoid preventable mistakes.
Panelist and veteran entertainment lawyer Schuyler Moore outlined three major legal risks independent producers should consider when working with AI.
Terms of service vary widely between AI platforms, and failing to review them carefully could result in unintentionally giving up creative rights. On some platforms, uploading content for AI manipulation may grant the platform broad usage rights or effectively render your work public domain.
If it looks like work that is already trademarked, or if it looks like a human actor, using the material could trigger a third party claim for copyright infringement or right of publicity.
This is why it’s crucial to keep detailed records of prompt logs and a clear chain of ownership. If your AI-assisted work is challenged, prompt documentation can help demonstrate that no copyrighted or trademarked material was intentionally referenced.
While it’s technically possible to create a fully AI-generated film, meaningful human intervention remains essential—both for artistic quality and copyright protection.
Fully AI-generated works are not currently copyrightable without human authorship or intervention. To preserve protection, panelists recommended either ensuring the original story or script is human-created before introducing AI, or ensuring that human intervention is retroactively interspersed throughout the work.
Another emerging technical possibility is using digital versions of real actors, or using AI-generated synthetic performers.
If a producer obtains permission to use a digital likeness of a living actor, the actor retains the rights to their likeness and must provide explicit consent for its use on a specific project.
The requirements vary depending on union affiliation. For Screen Actors Guild members in California, agreements to use digital replicas involve detailed disclosure, legal representation, and clearly defined compensation, including residuals. Even non-SAG performers in California cannot waive likeness rights without legal representation.
This was a process panelist Jonathan Yunger’s company Arcana Labs became familiar with when it used AI tools to digitally replicate SAG actors for the short film Echo Hunter.
On the other hand, we’re seeing the possibility of using entirely AI-generated “talent,” like the controversial generated “actor” Tilly Norwood. While this concept is still relatively new for the industry, it is likely to become highly litigious territory in the near future, making close coordination with legal and compliance teams essential.
Union agreements governing AI use are evolving, and panelists expect continued changes as contracts are renegotiated.
Under current guild agreements, AI use is tightly regulated. The Directors Guild of America prohibits signatory companies from using AI to replace DGA members. The Writers Guild of America permits AI-generated and assisted material but does not recognize it as literary material for purposes of credit or compensation—meaning the next human writer who works on it receives the credit.
For performers, SAG requires full disclosure, consent, and appropriate compensation—including residuals—when synthetic likenesses are used. If a studio intends to use an AI-generated synthetic “performer,” it must negotiate appropriate compensation terms with the union.
The conversation highlighted that these rules are not static and are likely to evolve as AI-generated content becomes more common.
Although AI can significantly reduce expenses in certain areas of filmmaking, it’s not free. Subscription models, usage credits, and platform fees can add up.
To manage costs, panelists recommended completing as much human creative work as possible before engaging AI tools. Doing so not only reduces AI usage credits, but also strengthens copyright defensibility and often improves the artistic outcome.
They also suggested exploring creative partnerships with AI platform teams, which may help offset costs or provide additional support.
Let’s recap some of the key actionable takeaways from the webinar.
When possible, lean toward well-regulated platforms, test tools before committing, and work closely with legal counsel during the selection process.
Maintain detailed prompt logs, track all materials uploaded into AI systems, and be prepared to demonstrate that no copyrighted IP was referenced. Secure and document proper likeness consent when applicable.
Fully AI-generated works without meaningful human intervention are not currently copyrightable. Human-authored scripts, storyboards, and animatics strengthen both creative quality and legal defensibility. Prioritizing human work before turning to AI can also help control costs.
Related to this point, remember that human talent remains essential. The quality of AI output is directly tied to the skill of the team using it. Effective prompting—and strong results—require real filmmaking expertise.
Ensure your project remains compliant as copyright law and guild agreements continue to evolve.
AI can expand what’s possible for independent projects—but only with transparency, careful oversight, and a clear understanding that AI literacy is now part of responsible production.
For those who want to dive deeper, you can watch the IFTA full webinar, which was presented by Wrapbook. If you’re ready to try an AI tool built for professional filmmakers, explore Wrapbook’s free AI Production Incentives Expert, an advanced chatbot trained to help you utilize film incentives to maximize your budget.
