Lowpass Media reports that Fox Entertainment has formed an undisclosed partnership with Runway, the generative AI video company, positioning itself at the forefront of Hollywood's AI adoption. Internal documents reveal Fox is actively encouraging employees to use Runway's AI tools for deliverables, including public-facing content, while implementing guardrails around copyright and privacy concerns to protect its valuable intellectual property.

Director's Cut on AI Strategy: Fox's approach reveals how major studios are balancing innovation with protection

Fox's strategic implementation offers a window into how major studios are approaching AI integration:

• Fox has established itself as an enterprise client, leveraging Runway's secure infrastructure to prevent proprietary footage from exposure in public training datasets

• Internal guidance explicitly greenlights using Runway's tools for deliverables, signaling confidence in the technology's professional applications

• The partnership includes specific guardrails around copyright and privacy, highlighting the careful balance studios must maintain when adopting AI

• Unlike other studio AI initiatives, Fox's partnership remained undisclosed until revealed through internal documents, suggesting a deliberately cautious public approach

Industry Frame-by-Frame: Fox's move follows Lionsgate's custom AI model announcement, signaling a strategic shift in Hollywood

Fox's partnership fits into a broader industry movement toward enterprise-level AI adoption:

• Lionsgate announced its own Runway partnership in September 2024, developing a proprietary AI model trained on its 20,000-title library

• Major studios are increasingly citing "capital efficiency" as a primary motivation, using AI to streamline budgets while maintaining creative output

• Fox's approach differs from OpenAI's Sora or Kuaishou's Kling by focusing on enterprise implementation with studio-specific customization

• The trend suggests studios are moving beyond experimental applications toward integrated AI strategies that impact deliverable content

Final Cut: Hollywood's AI transformation is accelerating despite unresolved regulatory questions

The Fox-Runway partnership represents a significant milestone in Hollywood's AI journey that will reshape industry practices. As major studios move from experimentation to implementation, we're witnessing a fundamental shift in production methodology balanced against ongoing ethical considerations.

While Fox and Lionsgate lead with strategic AI integration, regulatory frameworks around AI's role in labor displacement and IP ownership remain underdeveloped. Studios must navigate guild agreements and potential legislation while balancing efficiency gains against creative control concerns. Expect more custom AI studio partnerships as the technology matures, with the companies that develop sustainable, ethical implementation strategies gaining competitive advantage in a rapidly evolving production landscape.