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How Does Generative AI Impact the Video and Animation Industry

Posted on date: 02 August, 2025

Video production is undergoing rapid and positive disruption thanks to generative AI. What once took weeks of scripting, filming, and editing can now be streamlined with just a few inputs. The generative AI impact on the video industry is a revolutionary one, to say the least.

In this article, we explore how AI is reshaping the video and animation industry from workflows to creative possibilities.

Shifts in traditional workflows

From traditional workflows, generative AI has marked a great shift in regard to how video and animation projects are brought to life. Traditional video production demanded large teams comprising writers, editors, animators, and voice actors. However, with AI, all of this is being condensed and streamlined, resulting in a more seamless and accessible production process.

This new turn is empowering solo creators and lean teams to produce polished videos without relying on expensive studio setups.

Another major change is in delivery timelines. With AI tools, businesses can drastically cut down the time it takes from idea to final output.

This speed has also opened the doors for more agile marketing, faster campaign testing, and on-demand video content creation.

Cost and time efficiencies

One of the greatest benefits of generative AI can be seen in how it has reduced production costs for creating high-quality videos.

Brands do not need to hire professional editors or invest in expensive tools and software, as AI tools can now automate much of the work with minimal manual input. Tools like Videomagic have made AI video generation extremely affordable and practical, with its fair and low pricing.

With just a script and a few clicks, small teams can generate creative video content that looks professional and feels tailored, within minutes.

Animation and video production have always been an expensive affair. For a clearer picture of how AI is changing this check out our blog on the costs related to video creation.

New opportunities for businesses and agencies

The generative AI impact on the video industry is also opening new horizons for businesses and organizations, changing how video content is planned, produced, and distributed.

More frequent campaigns

As generative AI tools can now enable professional-grade video production at scale without draining resources or time, brands are no longer limited to a few big-budget campaigns per year. They can create frequent, consistent, creative, and on-brand video content for diverse purposes and platforms like social media, product launches, seasonal promotions, and more.

Agile A/B testing

Traditional video testing takes more time and can set you back a great deal in terms of cost, making regular experimentation difficult. The fast and cheap nature of AI video production means that you can now generate multiple video variations with different messaging, visuals, voiceovers, or CTAs, and test them out across channels to see which iteration drives better ROI.

Using Videomagic in marketing, training, and internal communication

Videomagic empowers teams to create quality, contextual videos tailored not just to different audiences, but also for different departments and purposes within organizations.

Marketers can produce personalized sales pitch videos while trainers can develop bite-sized onboarding content. HR teams can share internal updates with team members, all without needing a full video crew. Videomagic's suite of AI features and toolset can ensure brand consistency while allowing for flexibility and speed.

Concerns and resistance in the industry

These are some of the points of resistance regarding generative AI usage for video creation:

Fear of creative displacement

One of the biggest concerns regarding generative AI videos or AI in general is whether it will replace human creativity. Many professionals fear that automation will sideline traditional roles like scriptwriters, editors, or animators.

Quality vs. quantity debates

With AI enabling faster video generation at scale, some critics argue that the focus may shift from producing quality content to producing more content. There are concerns regarding whether over-reliance on templates and automation could dilute the depth of storytelling, visual originality, and brand authenticity.

Ethics in realism

As AI-generated avatars and voices are becoming hyper-realistic, the lines between real and fake are getting blurrier. This raises ethical questions around consent, transparency, and viewer trust. The misuse of deepfake-style content or synthetic personas for marketing or political purposes, is a growing area of resistance and regulation in AI video generation.

The balance: Human creativity + AI speed

While the above concerns and resistance are legitimate, there are tools out there, such as Videomagic, that are championing an ethical use of generative AI technology, with the understanding that AI automated video generation can only fetch the best result with authentic human input.

By letting users add their voiceovers, self-recorded video clips, or branded assets, Videomagic keeps creativity at the center while streamlining the heavy lifting with AI.

Rather than replacing creators and artists, AI becomes an intelligent assistant or a handy toolbox, speeding up scene generation, editing, and voice syncing. By finding the perfect balance, teams can produce high-quality, on-brand videos faster, without losing their unique voice or vision in the process.

Conclusion

Generative AI is a tool, and in the right hands, it can be an industry multiplier that offers the perfect edge needed to grow in today's competitive environment. AI, while streamlining production, cutting costs, and unlocking newer formats, is also equally supporting and enabling creativity.

Generate a video with Videomagic today!