Walt Disney Co. and NBCUniversal are paying lobbyists to watch over ongoing legislation that would stop them from using a state tax break if AI is used to replace workers, according to a recent report from Bloomberg Law.
What is the New York state AI bill?
According to disclosures filed with the state Commission on Ethics and Lobbying in Government, Albany-based lobbyists for both companies began monitoring the bill (S.B. 7422) right after it was introduced in June 2023. The bill itself “prohibits” applicants of the empire state film production credit from using artificial intelligence that would “displace any natural person in their production.
The Empire State film production credit is a tax credit for businesses that entitles them to a refundable credit if the business incurs or pays any production costs in New York State. The credit amount itself is based on the overall costs of the production, but would be nothing for those replacing workers with AI if the new bill is put into place.
Assemblyman Demond Meeks (D) spoke with Bloomberg Law on the issue, and said that it doesn’t surprise him very much that both Disney and NBC are looking into the matter. “It doesn’t surprise me,” Meeks said. “Big business tends to look for quick ways to save money and, you know, this may be another means of that.”
The ongoing WGA and SAG-AFTRA strikes also have the growth of AI at its forefront as well. Alongside issues of residual money and better wages, at the crux of the strikes is the use of AI, with writers and actors both concerned over Hollywood’s potential use of AI to replace them should the technology continue to grow.
