Filmmaking is undergoing one of its most significant transformations in decades. The rise of AI-driven workflows and virtual production is not just about streamlining efficiency, it’s about redefining the creative process itself. What was once the domain of big-budget studios is now becoming an essential toolkit for independent creators, brands, and storytellers looking to push the boundaries of their craft.
At SXSW 2025, The Lively Grit Daily House brought together some of the sharpest minds in the industry to explore this shift. In the panel It’s Not Like It Was: Virtual Production, AI & The Future of Creative Storytelling for Brands & Filmmakers, industry pioneers shared insights on how AI and real-time production tools are reshaping everything from filmmaking to advertising.
The discussion, put together by Dell Technologies, featured AJ Wedding (Orbital Studios), Andrew MacLusky (Narwhal Studios), and Alex Porter (Mod Tech Labs), with Laura Coover moderating. While their perspectives varied, one thing was clear: technology is no longer a barrier to creativity, it’s an amplifier.
The Evolution of Virtual Production: A Game Changer, Not a Gimmick
For years, virtual production was seen as a niche tool, used only in high-end projects like The Mandalorian. But as AI and real-time rendering software have become more sophisticated, the technology has exploded in accessibility and application. Orbital Studios, Narwhal Studios, and ModTech Labs are leading the charge, using AI to remove friction points in the production process and enable filmmakers to visualize and iterate at speeds that were previously impossible.
MacLusky, whose background in game design informs his approach to filmmaking, highlighted how real-time rendering — something the gaming industry has perfected — has become a vital tool in film production. Meanwhile, Wedding emphasized the importance of integrating virtual production from the earliest stages of development, ensuring that directors and creatives can make informed decisions before ever stepping onto a set.
AI as a Partner, Not a Threat
The fear that AI will replace human creativity is nothing new, but the reality presented at SXSW is far different. AI isn’t here to take over storytelling but to take over the busywork. Panelists described AI as an “expert assistant” rather than a creative force of its own, a tool that allows writers to refine scripts faster, artists to generate assets more efficiently, and production teams to iterate without wasting resources.
This shift has already begun to transform the industry. Rather than reducing job opportunities, AI is reshaping skill sets. The studios represented in the panel haven’t downsized due to AI. Instead, they’ve adapted, allowing artists to focus on high-level creative decisions while AI handles the repetitive, time-consuming tasks.
From Film to Advertising: A Universal Shift
It’s not just Hollywood embracing these advancements. The advertising industry has also realized the power of AI-driven content creation. Brands are now leveraging AI and virtual production to generate high-quality visuals at a fraction of the cost and time of traditional shoots. The panelists pointed to AI’s ability to rapidly produce dynamic, targeted content tailored for different audiences, a must in the fast-moving world of digital marketing.
Aside from the panel, Dell showcased a Virtual Production Scout demo, demonstrating how filmmakers and advertisers alike can collaborate in real-time across multiple locations. This level of interactivity and efficiency is reshaping the way brands think about storytelling, making high-end production tools accessible to agencies and creatives of all sizes.
The Future Is AI Agents and Interactive Storytelling
Looking ahead, AI’s role in filmmaking and media will only deepen. One of the most exciting frontiers discussed at SXSW was AI agents — intelligent assistants designed to help creatives navigate complex workflows. Porter shared how Mod Tech Labs is developing AI-driven tools that allow filmmakers to focus on storytelling without getting lost in technical hurdles.
But the conversation also touched on AI’s growing influence beyond traditional filmmaking. AI-assisted content creation is seeping into gaming, interactive experiences, and real-time audience engagement. As entertainment moves toward more immersive and participatory formats, these tools will allow creators to build experiences that were once unthinkable.
The New Standard in Filmmaking
The conversation at SXSW 2025 made one thing clear: AI and virtual production are no longer experimental technologies. They are the new standard. Whether it’s through AI-powered collaboration, real-time virtual production, or automation that enhances artistry rather than replacing it, the industry is shifting toward a future where technology amplifies human creativity.
For filmmakers, advertisers, and content creators, the message is simple: adapting to these tools isn’t optional, it’s the key to unlocking the next generation of storytelling. And as demonstrated at SXSW, those who lean into these innovations will be the ones shaping the future of media.
