Hollywood Labor Unions Push Back on Disney’s $1B AI Deal With OpenAI

LOS ANGELES — Hollywood’s major creative labor unions have responded with caution and criticism to Disney’s landmark three-year, $1 billion licensing and investment deal with OpenAI, which opens the door for generative artificial intelligence to use hundreds of Disney’s iconic characters in new ways. Reuters

The pact, announced earlier this week, will let OpenAI’s Sora video generator and ChatGPT Images create user-prompted content featuring more than 200 characters from Disney’s vast catalogue — including properties from Pixar, Marvel, and Star Wars — as part of an effort to expand storytelling and creative engagement through AI. Disney will also integrate OpenAI technology into internal workflows and digital offerings. Reuters

Unions Warn of Creative Rights at Stake

The Writers Guild of America (WGA) issued a strongly worded response, arguing that the new Disney-OpenAI agreement appears to “sanction the theft” of the creative work produced by writers and Hollywood labor over decades. Union leaders said the deal seemed to “cede the value of what we create to a tech company that has built its business off our backs,” and pledged to meet with Disney leadership to scrutinise how user-generated AI videos might incorporate material written by WGA members. That Park Place

In its message to members, the WGA reiterated long-standing concerns that AI companies, including OpenAI, have historically trained their systems on vast libraries of copyrighted material without consent, underscoring broader fears about intellectual property rights in the era of generative AI. That Park Place

Actors’ Union Takes Measured Stance

Representing performers and other entertainment professionals, SAG-AFTRA stopped short of outright condemnation but signalled vigilance. The union confirmed that Disney and OpenAI reached out with assurances their contractual and legal obligations would be upheld — particularly around the protection of performers’ image, voice, and likeness rights — and said it would closely monitor implementation of the agreement. That Park Place

“SAG-AFTRA will closely monitor the deal and its implementation to ensure compliance with our contracts and applicable laws protecting image, voice and likeness,” the union said in its statement, noting ongoing talks with OpenAI about safeguards for performers. That Park Place

Despite those reassurances, the union also emphasised that existing AI “guardrails and technical protections are inadequate” and that stronger measures are needed across the industry to safeguard creative talent from unjust exploitation. That Park Place

Broader Industry Context

Disney’s AI deal does not permit the use of actors’ likenesses or voices in AI-generated content — a point the studio highlighted amid union dialogue — but the broader implications for creative labor rights remain a flashpoint. Reuters

The agreement reflects a growing trend of major media companies embracing AI tools, even as talent groups remain wary of how these technologies might reshape traditional creative roles. Analysts suggest that while unions will push for stronger protections, the rapid integration of AI in content creation may be difficult to fully constrain through collective bargaining alone. Khaleej Times

Looking Ahead

With the WGA planning direct talks with Disney and SAG-AFTRA continuing to monitor the situation, Hollywood’s labor organisations are positioning themselves to influence how AI is adopted within the industry. Both unions have made clear that transparency, fair compensation, and respect for creative ownership must be central to any future AI-related agreement — a stance shaped by recent battles over automation and rights during the 2023 SAG-AFTRA and WGA strikes that focused in part on protections against unchecked AI use. en.wikipedia.org

As Disney and OpenAI prepare to roll out this ambitious initiative in early 2026, the dialogue between studios and creative unions may help define the next chapter of Hollywood’s relationship with artificial intelligence — balancing innovation with the rights and livelihoods of the artists who built the stories audiences cherish.