August 17, 2023

New York State Senate Bill 2023-S7422

Prohibits Use of AI in Projects Receiving

Film Production Credit

Courtesy of Freepik.com

A new bill introduced in the NYS Senate would prohibit applicants of the State’s Film Production Credit from using artificial intelligence (“AI”) that would displace any natural person in their productions.

Sponsored by Senator Alessandra Biaggi, Senator Lea Webb and co-sponsored by 18 other state senators, 2023-S7422 was introduced is in response to concerns that AI is increasingly being used to create content that is indistinguishable from human-made content, leading to the supplantation of creative workers’ work by artificial intelligence and job losses in the film and television industry. Key Aspects of the Bill

In concert with other NYS legislation on artificial intelligence, the bill has the following definitions and prohibitions:

• Defines artificial intelligence as "any technology that enables a machine to perform tasks that would otherwise require human intelligence"

• Defines synthetic media as "any form of media including text, image, video or sound fully or partially created, or modified through the use of artificial intelligence algorithms”

• Defines AI-generated content as "content that is created, produced, or generated in whole or in part by an artificial intelligence or machine learning system"

• Prohibits applicants of the film production credit from using AI-generated content in any of the following ways:

o As a substitute for a natural person in a performance or other creative role,

o To create a visual effect or other special effect,

o To create a background or other setting, and

o To create a prop or other object.

The bill, however, would not prohibit the use of AI in film production altogether. It would only prohibit the use of AI that would displace any natural person in a production. For example, AI could still be used to create special effects or to generate background characters. However, it could not be used to replace actors, directors, or other creative workers. Status of the Legislation

The bill has been referred to the Senate Finance Committee for consideration and is being heavily monitored by lobbyists for the major motion picture studios. Reactions to the Bill

The bill has been met with mixed reactions from film and television industry stakeholders. Advocates for the bill argue that it is necessary to protect jobs and the creative economy. Opponents contend that the bill will stifle innovation and make it more difficult to produce high-quality films and television shows.

The introduction of this bill is a significant development in the debate over the use of AI in the film and television industry. It remains to be seen whether the bill will be passed into law, but it is a sign that lawmakers are taking the issue seriously.

Governor Kathy Hochul, a champion of the film tax credit program, has not yet commented on the AI proposal. Previously, she has emphasized the importance of maintaining a balance between the needs of corporations/studios and employees. With a total program offering $700 million in tax incentives for filming in New York, the potential financial impact of the bill is massive.

As the entertainment industry is currently focused on the debate over the ethical use of AI and the protection of human talent, this bill is a significant step in that debate. Furthermore, this bill could be used as precedence by other states to implement similar prohibitions for their incentive programs.

Regardless if it is signed into law or not, it will be interesting to watch S7422’s matriculation through the New York Assembly and its potential impact on legislation in other jurisdictions!