First published on LinkedIn on March 4th, 2025 – Reprinted/reposted/reblogged here with the permission of the Author
AI is redefining animation—not by replacing imagination, but by expanding it. 🎥
The industry is shifting. AI animation is no longer just a concept—it’s becoming a real production pipeline.
But what excites me even more? How AI allows us to reimagine storytelling, and world-building.
For the past few months, we’ve been refining AI-driven workflows for both VFX and animation, and a few things are clear:
✅ AI isn’t just making animation faster—it’s making independent storytelling possible at an unprecedented scale.
✅ New compensation models need to evolve alongside these tools.
✅ The studios that embrace this shift now will define the future of animation.
Douglas McGinness III
Is AI killing the VFX Industry?
No, but it could kill those who refuse to adapt.
When I was first starting out as an animator, The Mill was one of my dream places to work at. The level of incredible work that was created there was bar none for the industry, and all led by some of the best artists and visionaries in the world – many of whom went on to found companies that I greatly respect and admire as well.
So I was sad to see it, MPC, and parent company Technicolor close down last week.
Sad but not surprised.
Covid, the writers and actors strikes, the ongoing shift away from traditional media and film to social platforms, and an ever increasing demand for content to be made faster and cheaper has created a non-sustainable environment for the VFX industry as of late. Many of the top companies I know are now racing to try and win projects they probably never would have looked at 5 years ago.
All of this was creating holes in the ship even before AI.
So no, I don’t believe AI was a contributing factor to The Mill, MPC, or Technicolor closing. But it will probably cause more VFX companies to close in the future.
Because here’s the thing: while I love AI and have championed its use for years now, what I’ve maintained from the beginning is that artists and humans are still required to make something meaningful with it.
The video below is from one of one of our workflows, which takes a single still image and creates a rigged 3D asset from it. Powered in large part by AI. But it still takes artists who understand the VFX process in order to guide the AI into making something that’s still usable.
Just being able to generate a 30 second commercial with AI doesn’t guarantee anyone will want to watch it. VFX artists are some of the most talented and intelligent people in any workforce, able to blend both left and right brains seamlessly. They know how to make something visually engaging.
I believe the benefit to adopting AI goes far beyond pencil pushing numbers and profitability – AI is an incredibly powerful tool to push the boundaries of creativity, as I myself have discovered in our own tests of blending AI animation workflows like 2D and live-action, which never would have been possible as fluidly without AI.
I say all of this because I love this industry and I don’t want to see more VFX agencies close down. AI certainly can’t fix all of the problems endemic to the industry, but in my humble opinion it at least can’t hurt.
What do you think? And if you’re a VFX or animation agency that is struggling to integrate AI fully reach out, let’s have a chat.
Douglas McGinness III
AI for VFX and Animation | Founder, Director @ Animated Company | Animating the future of storytelling