Lionsgate AI Chief Kathleen Grace Explains the Job, Runway Pact

Lionsgate AI Chief Kathleen Grace Explains the Job, Runway Pact


“Chief AI officer” isn’t a classic Hollywood power title like “head of business development” or “social-media crisis manager for when a celeb loses their mind.” But get ready for that to change as more studios and agencies realize they need executives devoted to overseeing AI efforts.

Among the first to the campfire is Kathleen Grace. A former executive at YouTube and the rights-tracking AI company Vermillio, Grace was hired this winter as chief AI officer at Lionsgate, becoming the first person at a Hollywood studio to specifically hold that title.

What does that job actually mean and how does she feel the tech should — and shouldn’t — be integrated into the development pipeline? We chatted with Grace to find out.

Let’s start with the job description. What does a chief AI officer do?

I’ve been brought in to connect AI strategy with real execution as we continue to invest and find the right tools and put them in the hands of our filmmakers and showrunners. My goal is to very intentionally move forward with experimentation, but with clear guardrails and a strong focus on trust and creative partnership. Success is not just about, “Hey, let’s go try the latest model.” It’s about responsibly integrating AI across production, marketing, distribution and administrative workflows in a way that supports our creative teams, protects their rights and actually makes the work better. 

You mention experimentation. I know it’s early in your tenure, but what could that look like? 

For me, it’s structured, meaning it’s an iterative process, like software development. We pilot things before we go sell them as a series. We read scripts. Software development works very similarly. So how are we going to test the tools out there in a safe way, without even using any of our existing IP, and then, how do we do the work? Are they up to the standards of our creative teams? So it’s a very rigorous testing process that I’m trying to build internally.

So what kinds of things can readers see? What will AI experimentation look like to a Lionsgate consumer?
 
Like you said, right now it’s early. I like outlining the use cases and understanding what’s going to be most impactful for both Lionsgate and our partners. So it’s hard for me to give you a specific example I’m comfortable talking about publicly right now.

Do you see AI as an all-encompassing effort? That is, is this more of a filmmaker-support thing, invisible to consumers? Or can you envision creating platforms for the public?

I think we’re going to work across production, marketing, distribution and even administrative workflows — so every single aspect of our business. My vision is to support the showrunners and filmmakers and what they want to do. So they come to me with an idea that’s ambitious and cool. We’re going to do everything in a safe way. And be open. If it deepens the experience for the audiences we speak to, I’m into it.

What do you say to people who see this as more of an efficiency tool or a cost-cutting tool? Is that something you’d be OK with, or would you try not to use AI for that purpose?

Every era of filmmaking has been shaped by new technology. Things have changed black and white to color, film to digital and obviously, more recently, streaming. And at each time, there has been this anxiety, but at each time, the tools change. The role of filmmakers and genres as creative leaders did not, and so we see the following of a similar path, opening up creative possibilities, expanding the world that can be built and enabling new formats. Yes, it can introduce efficiency and speed, but it’s more about removing friction from the process, not people from it. 

So those who say it will be the same amount of output, just now done more cheaply and with fewer people — you’d push back on that scenario.

Our goal is to make more space for creative ambition, not less, and to support the visions of our filmmakers and showrunners, not replace them. I’m not going to pretend that there isn’t a pressure to be more efficient in our business today. But that efficiency doesn’t have to mean fewer voices. It can just mean giving creative teams better tools earlier in the process. My previous role at Vermillio was entirely building a tech that allowed people to be fairly compensated for the use of their name, image and likeness. Previously at YouTube as well — I was deeply involved in the creator ecosystem. And so I continue to bring that expertise, understanding how to like working with creative people, to build trust and great working relationships with technology partners. That’s the goal.

When Lionsgate made the Runway deal in 2024, many around town wondered what it would mean to have a model that was trained exclusively on all these Lionsgate properties. We haven’t seen, publicly at least, many outcomes from that deal. How do you imagine that kind of relationship can be capitalized on?

I can’t get into specifics on that. We’re integrating them in many ways. We have lots of different partners, but obviously we love Runway, and we’re continuing to work with them. It’s just about where their tech can drive the most impact, and we’re learning that together. I’ll say I’m excited about it — the fact that we are going to have some really great new ways to deeply engage with the people who love Twilight or the people who love John Wick. Like, I’m just very into that. 

You mentioned the marketing side of this. I don’t think people talk enough about that, about how AI could connect consumers with something that is made. What are you views on how AI can be used to reach people or help them engage?

I think we’re going to see exciting uses of AI throughout the entire process of our business. And I think we have to think of it less as a surgical tool and more as a change in how you think about what you’re doing, no matter what that is, across our entire business. 

A few speed-round questions. In five years, do you believe the majority of film, TV or creator content will be AI-driven or human-led? What about 10 years?

I guess it’s hard for me to think about it that way because I see it more as a partner and collaborator. If the question is whether AI will be an integral part of creative processes in five years, yes, I think it will be, and even more so in 10 years.

Will it be human-led?

I think we’re going to need people to evoke feelings.

So they will be at the center of the process, as opposed to in the background, overseeing a model.

Yes, it will be human-led; they will be co-creating throughout. 

A partnership.

Yes. You know, being a filmmaker and a creative person, having a vision, can be very lonely, and having a team believe in you can be very powerful, empowering. And having people to collaborate with, both people and technology to collaborate with, can make you grow exponentially.

Give me the single best thing AI will bestow on Hollywood and the creator economy, and maybe the single worst. The most excited about and the most fearful for.

I’m most excited about how it’s a bigger palette to make more cool stuff. 

And biggest fear?

My biggest fear is that we erode trust in our creative partners. 

Thank you. I’m eager to see what shape this takes.

Thank you. I am too.

This story appears in The Hollywood Reporter’s AI Issue. Click here to read more.


www.hollywoodreporter.com
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