Weta FX says Hollywood studios now demand AI strategies

Weta FX CEO Daniel Seah says major Hollywood studios have shifted from banning generative AI to requiring visual effects vendors to present AI strategies, according to Variety. The company is also conducting due diligence to acquire a significant stake in Taiwan visual effects company Moonshine Studio, Screen Daily reports.

Seah said studio legal departments prohibited generative AI use in early 2025. Several clients began allowing approved uses by the middle of that year, then asked Weta FX about potential cost savings and its AI strategy. By the third quarter of 2026, some clients would not consider vendors without such a plan.

Weta FX has worked with Moonshine Studio for about six months. It also signed an agreement with the Taiwan Creative Content Agency covering technology research, content investment and talent training. The agency and Taiwan's Ministry of Culture will identify candidates who could receive internships at Weta FX offices.

Weta FX is building models for modifying and recreating visual environments. It also uses external video models including Kling AI and ByteDance's Seedance when clients approve their use and the systems are hosted outside China. Seah said the company plans to use AI to support artists rather than replace employees.