AI is rewiring the world's most prolific film industry

AI is transforming India's bollywood film industry, with increasing use of digital tools in studios to create content amid shifting audience habits and limited budgets. A company called Collective Artists Network, which works with Bollywood actors, directors, and filmmakers, is now using artificial intelligence to create digital characters and scenes. They are working on stories of ancient epics like the Ramayana and the Mahabharata, showcasing scenes like god Hanuman flying while carrying a mountain, and Gandhari, who covered her eyes after marrying a blind king.

India makes the most prolific films than any other country, and stars like Shah Rukh Khan and Amitabh Bachchan are loved by millions of fans. But the film industry is facing some problems. As people now watch more content on streaming platforms, then going to cinemas. According to Ormax Media, the number of moviegoers has dropped from 1.03 billion in 2019 to 832 million in 2025. Even though total box office money hit a record $1.4 billion last year, earnings are not steady and mostly depend on a few big hit movies and higher ticket prices.

To deal with this, studios are now using AI in many ways. They are making full movies using AI, dubbing films into different languages, and even changing the endings of old movies to earn more money. This helps flimmaker save time and costs. Though, even it earns money, many people don’t like AI-made content and often give it a bad reviews.

Meanwhile, studios in the America and British have also been experimenting AI in films. In 2024, they made the first full length AI-animated movies and even created an AI-based immersive version of The Wizard of Oz last year. Dominic Lees who is a researcher at Britian's university said, "If they can deliver, then the shift in AI filmmaking will be to India."

Hollywood takes this approach is different way, as the union contracts are worries about losing jobs and how much AI is being used. But in India, things are more open, one big studio is even thinking about using AI to remake its old movies. Big tech companies like Google, Microsoft, and Nvidia are partnered with Indian filmmakers to work on.

Earlier reports talked about how Indian filmmakers are using AI and how their approach is different from Hollywood. But this report goes deeper, showing how much India’s film industry is actually changing because of AI and the money behind it.

Rahul Regulapati, heads of Collective's AI studio, known as Galleri5 said, "AI is slashing production costs to one-fifth of what they used to be for traditional filmmaking in genres such as mythology and fantasy,"

According to analysis, AI could boost Indian media and entertainment firm's revenue by 10% and reduce costs by 15% over the medium term. The AI studio is building its AI capability from scratch and expects content generated or assisted AI to account for one-third of its revenue within three years.

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