AI Revolutionizes India's Entertainment Industry with Cost-Cutting, Creative Enhancements
February 18, 2026
Industry leaders foresee AI as a central filmmaking tool that will boost creativity and efficiency, with ongoing investments and continuous innovation expected to cement India’s role in the global AI-driven media landscape.
AI is rapidly permeating film, television, and OTT production in India, shifting from pilot projects to institutional capital deployment aimed at cutting costs and shortening production timelines.
The AI transformation faces challenges including IP rights, labor protections, ethical considerations, potential job displacement, and the need for human oversight to preserve cultural nuance and storytelling integrity.
AI-driven production pipelines aim to cut costs and timelines by virtualizing portions of physical production and using AI to process audience data, identify segments, analyze story patterns, and assist in talent discovery.
AI is increasingly used in visual effects, pre-visualisation, and digital world-building, enabling projects that blend live-action with AI-generated elements or run on AI-led workflows.
In tandem, major investments include the Galleri5 AI production system from Collective Artists Network to streamline workflows, underscoring a broader shift toward AI-led production ecosystems.
AI is moving from experimentation to integration across India’s entertainment ecosystem, embedding itself in scripting, casting, production, and post-production to streamline workflows and broaden creative possibilities.
Collective Artists Network (Galleri5) is deploying a proprietary AI production system that integrates VFX, 3D animation, and AI pipelines to reduce reliance on physical infrastructure and speed up turnaround times, with ongoing use on projects like Mahabharat: Ek Dharmayudh.
Industry projections suggest overall film production costs could fall by 30–40% within two years, with even larger savings in VFX and live-action workflows, and scriptwriting could see pre-production cost reductions of 20–30%.
India’s M&E sector was valued around ₹2.5 trillion in 2024 and is projected to reach ₹3.1 trillion by 2027, with digital media as the largest segment; AI-driven growth could propel the market beyond USD 712 billion by 2035 at a CAGR of about 38.6%.
Abundantia Entertainment and InVideo are partnering on five AI-driven films over three years, backed by ₹100 crore, with InVideo supplying AI and virtual production infrastructure and Abundantia handling development and physical production.
Industry leaders view AI’s impact as both creative and economic: exponential potential and democratized storytelling, faster and cheaper turnarounds, and a move toward AI tools becoming core filmmaking instruments that require ongoing experimentation across LLMs and multimedia models.
Summary based on 2 sources
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Sources

Economic Times • Feb 18, 2026
From bit role, AI's now the hero of entertainment industry
Whalesbook • Feb 18, 2026
India's Entertainment Sector Embraces AI for Cost & Speed