AI Reshaping Creative Industries: A Deep Dive into Media and Entertainment Transformation

In April 2025, a significant report emerged from the TONOMUS Global Center for Digital and AI Transformation at IMD Business School, authored by Jialu Shan and Michael R. Wade. Titled “The AI Renaissance: Transforming Media and Entertainment,” the analysis delves into the profound and accelerating impact of artificial intelligence, particularly generative AI, on the fabric of creative industries.

The media and entertainment sectors, long at the forefront of technological adoption, are now experiencing a paradigm shift driven by AI capabilities. The report highlights how these advanced tools are not merely supplementing existing processes but fundamentally altering how content is conceived, produced, and consumed globally.

A New Landscape for Creation

The core of the report examines four primary areas where generative AI is demonstrably making significant waves. These domains represent critical pillars of content creation within the media and entertainment sphere, each witnessing rapid evolution thanks to AI integration.

The first area is Image Generation & Editing. Tools leveraging generative AI are enabling creators to generate novel images from text prompts or existing inputs, and to edit existing visuals with unprecedented speed and flexibility. The report specifically names tools such as DALL·E 3, Midjourney, Adobe Firefly, and Canva as prominent examples in this space, demonstrating how AI empowers artists and designers, expands creative possibilities, and optimizes workflows that were previously time-intensive.

Closely related is the second area: 2D/3D Animation & Modeling. AI is revolutionizing the often complex and labor-intensive processes involved in bringing characters and environments to life. The report points to tools like DeepMotion, Luma AI, Wonder Dynamic, and Rokoko as key players in this transformation, facilitating faster character rigging, motion capture processing, scene generation, and overall streamlining of animation pipelines. This advancement significantly lowers barriers to entry and accelerates production cycles.

Transforming Audio, Video, and Music

The third and fourth areas covered in the report focus on dynamic content: Audio/Video Generation & Editing and Music Production & Editing. AI is becoming indispensable in these fields, offering capabilities ranging from generating realistic voiceovers and sound effects to automating video editing tasks, color grading, and even synthesizing entirely new video sequences.

In music, AI tools are assisting composers and producers in generating melodies, harmonies, and rhythms, as well as optimizing mixing and mastering processes. This transformation in audio, video, and music not only empowers creators with new tools for expression but also changes how audiences engage with content, offering personalized experiences and opening avenues for interactive narratives and dynamic media.

Navigating the Future Landscape

The analysis by Shan and Wade underscores that while AI presents immense opportunities, it also necessitates strategic adaptation from industry professionals and organizations. The authors emphasize the critical importance for those working within media and entertainment to stay current with new AI features and tools as the technology evolves at a rapid pace.

Furthermore, the report highlights that adopting AI is not a one-size-fits-all approach. Industry players must carefully select AI partners and tools based on specific strategic objectives, available financial resources, and their teams’ technological comfort levels. Making informed choices in this dynamic environment is presented as crucial for maintaining a creative advantage and successfully navigating the AI-driven future of media and entertainment.

Published in April 2025, the report serves as a vital guide for stakeholders across the creative industries, illuminating the current state of AI integration and providing insights into the strategic considerations required to harness its transformative potential effectively.