AI media set to break barriers in news, entertainment and gaming

From automated news presenters to lifelike characters in video games, synthetic media is set to expand this year

A journalist watches an introductory video by the AI anchor Fedha on the X account of Kuwait News service. AFP

Under the studio lights at Nation TV, one of Thailand’s largest news channels, a next-generation news anchor took the spotlight in April. Dressed in a formal blue suit, Natcha delivered the evening headlines with a natural-sounding voice and lifelike expressions that captivated viewers.

But Natcha wasn’t just another news anchor – she was Thailand’s first artificial intelligence news presenter. Her debut was a glimpse into the future of AI-driven synthetic media, a trend set to accelerate further this year.

According to San Francisco company Grand View Research, the market size of AI in the media and entertainment industries is projected to grow at a compound annual growth rate of 24.2 per cent from 2025 to 2030, from $25.98 billion last year. It was $15 billion in 2022.

The spotlight on synthetic media extended to industries like advertising and gaming, as businesses and brands increasingly leaned on AI to offset the rising costs of human capital.

The growth of AI in the film industry was showcased at the Reply AI Film Festival in September, held alongside the 81st Venice International Film Festival. Using synthetic actors reduces costs, as production teams save on salaries, travel and accommodation for human actors, and post-production costs.

For instance, a report by Statista estimates that by next year, AI-driven VFX solutions are projected to save the industry over $1 billion annually by minimising human tasks.

Similarly, research from consultancy McKinsey reveals that AI advancements in VFX have accelerated post-production timelines by 30 per cent, benefiting high-budget action and sci-fi films.

Meanwhile, in advertising, one of the most notable uses of synthetic media came from Coca-Cola, which released a video featuring large red lorries driving through snow-covered streets, reminiscent of the brand’s 1995 Christmas advert, but without a single human actor or real lorry.

Industry analysts estimate that traditional advertising campaigns with human actors can cost anywhere from $100,000 to $5 million, depending on the scope. By using AI, Coca-Cola avoided expenses like hiring actors, renting sets, or conducting on-location shoots. While the company has not disclosed the exact figures, advertising insiders suggest such AI campaigns can save up to 70 per cent in production costs.

In the past few months, many global brands have embraced synthetic media to cut costs, enhance scalability, and localise campaigns – a trend exemplified by the rise of virtual influencers.

Companies like Prada, Burberry, Givenchy, and Calvin Klein have collaborated with Lil Miquela, one of the first AI-powered virtual influencers portrayed as a 19-year-old Brazilian-American with a humanlike persona and 3 million followers. She reportedly charges hundreds of thousands of dollars for brand deals. Similarly, Kim Kardashian’s make-up line, KKW Beauty, collaborated with Noonoouri, while fashion brand Louis Vuitton partnered with Ayayi.

AI news anchors

Natcha’s April debut was part of a growing trend of AI news anchors.

In December 2023, Los Angeles start-up Channel 1 showed market opportunities for AI news anchors with a 22-minute video featuring AI-generated presenters. In April 2023, a Kuwaiti media outlet used AI to create a virtual news presenter, Fedha, who debuted on X.

AI broadcasters like Fedha can switch seamlessly between different languages such as Mandarin, English, and Arabic, delivering continuous news updates at lower costs than traditional broadcasts.

AI automation of complex visual elements has cut animation costs by 25 per cent, according to Allied Market Research. While exact total figures vary, experts suggest that AI news anchors can significantly reduce costs compared to traditional human broadcasts, particularly in areas such as salaries, training, and logistical expenses.

However, as AI reshapes media, the question of regulation remains, aiming to ensure accuracy, reduce bias and address ethical concerns like deepfakes and manipulated content.

Tim Gordon, co-founder and partner at Best Practice AI, emphasises that regulation is essential to managing this shift which he believes is “only viable path forward”.

“Clearly, 2025 will be the year of AI regulation … The EU AI Act will drive investments in AI education and transparency, and countries like the UK and the US states are expected to roll out new regulations,” Mr Gordon told The National.

Synthetic media’s impact extends beyond traditional newsrooms and advertising, reaching the world of gaming – an industry where immersion and interactivity are vital.

“If 2024 proved anything, it’s that synthetic media is no longer experimental – it’s essential,” says Omar Ghanem, founder and chief executive of Abu Dhabi-based Web3 gaming company GAM3S.GG.

“AI and synthetic media are enabling real-time, player-driven narratives and adaptive environments … evolving games dynamically based on individual choices,” Mr Ghanem told The National.

Take, for example, Ubisoft’s Assassin’s Creed: Mirage, which used AI-generated non-playable characters with adaptive responses, offering in-game interactions that elevated player engagement.

Breaking traditional barriers

Similarly, virtual influencers are reshaping the marketing landscape, offering brands innovative ways to connect with audiences.

Diana Nunez, co-founder and chief executive of Barcelona's AI model agency The Clueless, along with her partner Ruben, created Aitana Lopez, a virtual influencer, to tackle the high costs and logistical challenges of using traditional models and influencers in advertising campaigns.

“If AI can be part of our creative processes, why not create our own digital models and influencers?” Ms Nunez told The National.

Aitana Lopez, the pink-haired virtual influencer, has over 200,000 social media followers. She frequently posts selfies from events and her virtual home, tagging brands such as Olaplex haircare and lingerie company Victoria’s Secret.

“Creating Aitana and other virtual characters has been a way to open new possibilities for brands … our aim is democratising access to influencers and make marketing more accessible for everyone,” says Ms Nunez.

AI and virtual influencers like Lil Miquela and Aitana Lopez never age, never tyre and can be customised – meaning they never need a day off.

These advantages made them an attractive choice for brands, offering creative control and freedom from the unpredictability of human influencers, says Prateek Dixit, co-founder and chief technology officer at audio series platform Pocket FM.

But simply partnering with AI-driven influencers doesn’t guarantee brand success. So, what makes the difference?

According to Triveni Gandhi from the machine learning firm Dataiku, the answer lies in adopting ethical AI practices to build deeper trust with consumers.

She explains that labelling AI-generated content or news delivery is crucial for building consumer trust and giving brands a competitive edge in the market.

“Ethical AI practices can actually speed up time to value for AI … companies can ensure their AI systems are compliant with regulations, minimising delays and reputational risks,” Ms Gandhi says.

Navigating the legal and ethical minefield

While AI-driven content powers immersive experiences, it also fuels dilemmas around disinformation, privacy and copyright, experts say.

One of the most heated debates centres on deepfakes. Politicians have raised concerns about how these tools could be weaponised to create fake news or defraud people using AI-generated impersonations.

Mr Gordon notes that as image rights, long protected by sports stars, become more accessible, everyday people may increasingly seek legal protection for their digital likenesses.

For example, the simulation game TopSpin 2K25 secured permissions and compensated tennis legends like Roger Federer and Serena Williams to use their likenesses as in-game characters.

The EU AI Act also addresses copyright in the context of synthetic media, requiring creators to disclose whether content is AI-generated.

Hollywood actor Scott Hamm-Duenas, who participated in a recent strike to make sure AI would not replace background actors or use their likenesses without their accord or compensation, says the rise of synthetic media in the entertainment industry – especially movies – has sparked urgent conversations about consent, control and the value of human talent.

“If you use someone’s likeness, they should be compensated,” he told The National. He said it is unlikely that AI will ever replace actors and writers.

“AI feature films will be made at some point, but I can assure you many humans will be taking part in this process. The same way that it works with animated movies or films heavy with CGI [computer-generated imagery].”

Even the latest Coca-Cola ad faced backlash from creatives for using AI over human artists.

Alex Hirsch, creator of Disney's ‘Gravity Falls’, responded to an X post featuring the new commercial, which has had over 60 million views: “Fun Fact: CocaCola is ‘red’ because it’s made from the blood of out-of-work artists”.

While regulatory frameworks are critical, implementing AI tools comes with its own challenges that extend beyond copyright concerns.

Jad Haddad, global head of Oliver Wyman Quotient, emphasises that generative AI tools must be implemented “carefully to avoid bias, hallucinations, and misinformation”.

“This should certainly not deter businesses from using AI for content creation,” Mr Haddad tells The National, emphasising the need for clear parameters and human oversight to ensure AI serves as a tool for good.

Last month, OpenAI's video generator Sora produced a video of a gymnast performing movements that appeared unnatural and unsettling, with the gymnast twisting in ways that defied human anatomy.

Such incidents make “meticulous planning and human oversight all-the-more important for businesses to leverage synthetic media or AI’s full potential”, Mr Haddad said.

What’s next?

The rise of multimodal AI, which fuses text, audio, and visuals, will unlock new possibilities for synthetic media the year, said Mr Dixit.

“AI-driven content creation will reach unprecedented levels … transforming how audiences engage with content,” he said, predicting a surge in personalised experiences across industries such as live entertainment, e-commerce and customer service.

His company, Pocket FM, is already adopting consent-based voice and image replication while clearly labelling synthetic content – a move aimed at staying ahead of incoming regulations.

Experts predict AI will soon revolutionise education and health care with custom learning environments and medical simulations, though these advancements bring new challenges.

Stefan Leichenauer, vice president of engineering at SandboxAQ, warns that AI’s reliance on language models introduces risks of bias and hallucinations, underscoring the need for rigorous oversight.

“The type of AI that will drive breakthroughs in science and technology is known as quantitative AI … it relies on mathematical equations and real experimental data, making it unbiased … this will be the future.”