VFX Leaders Weigh Potential of Forming a Global Trade Association and Gauge Impact of AI on the Workforce

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As a passionate film enthusiast, I can’t help but voice my concerns about the ongoing exploitation and misuse of visual effects companies. Veteran industry figure, Scott Ross, whose 40-year journey in this field includes co-founding Digital Domain and working at George Lucas’ esteemed companies like Industrial Light & Magic, has issued a stern warning: “If we don’t bring about change, we’ll witness more companies collapsing, and talented, creative individuals will find themselves jobless.

Ross spoke candidly about the possibility of establishing a worldwide trade alliance (a topic that has resurfaced due to current market turbulence and following the demise of Technicolor) and addressed the “unspoken issue,” artificial intelligence, during a discussion at the FMX conference. This event took place in Stuttgart, Germany over the weekend and was moderated by industry veteran Dave Gouge. Ross began the panel by acknowledging to the audience, “I’m about to tell you something that you might not want to hear: I’m going to speak the truth.

In the predominantly non-union visual effects (VFX) sector, there exists the Visual Effects Society, which functions more like an honorary group rather than a trade association. As challenges within the VFX industry persist, this structure has been scrutinized. Ross expressed his longstanding support for trade associations, although he admits uncertainty about the feasibility of such an initiative today.

One issue that Ross observed with the management of VFX companies is fear often hindered them from speaking up to clients, asserting their discontent. He believes that if a majority of key players joined a trade association, it could offer a platform for collective bargaining power, potentially leading to changes in a business model that many consider flawed.

As a movie enthusiast, I can’t help but voice my worry. It seems a significant number of major studios are now controlling the companies that create visual effects (VFX). For instance, Netflix acquired Scanline and Disney owns ILM. This ownership pattern suggests that it might not be in the studio’s best interest to alter their business model, as they essentially control the tools for creating those stunning visual effects we all admire.

I once believed that smaller studios or independent entities could negotiate for fairer terms, but with this consolidation, that leverage seems to be dwindling. I’m not sure if a trade association would be effective now, but I think it’s worth considering as a potential solution. After all, the health of the movie industry and the quality of our favorite films might depend on it.

David Li, CEO of Dream Machine FX, which includes VFX brands like Important Looking Pirates, Fin, Zero VFX, Mavericks VFX, and ARC Creative (recently launched in February with talent from Technicolor’s The Mill), echoed Ross’ thoughts by stating, “Every industry typically has a trade association. I believe there’s a significant potential for promoting shared interests and working together.

He pointed out that it seems like various studios in the visual effects field follow distinct guidelines, which might be the primary reason for inconsistencies. If the industry aims to bring about change, everyone must take responsibility and enforce these new rules themselves.

Li, who stated during the panel that Dream Machine has been “profitable every year,” wrapped up the trade association discussion with a promise. “I truly believe it’s the right move,” he declared. “If you were to establish a trade association, we, Dream Machine, would definitely be part of it. I am ready to pledge this to everyone here. I agree, collective advocacy seems extremely advantageous.

Over the past few years, some visual effects (VFX) professionals have considered joining the labor union IATSE. This includes in-house VFX teams at Marvel Studios and Walt Disney Pictures. However, Ross cautioned that for the advantages of unionization to be realized, it should ideally be an international union. He explained that IATSE currently operates in both Canada and the United States, but running a union company costs approximately 20% more. Consequently, if his prices were to rise by 20%, he would be at a disadvantage compared to non-union companies located in cities such as London or India.

Ross openly expressed his reservations about AI being utilized in creative fields. In essence, he highlighted that in many large visual effects companies, the majority of visual effects workers were not primarily creative individuals. He stated that only around 15-20% of a staff of 500 to 1000 could be considered as creative, and even then, their creativity was often tertiary or secondary at best. He further explained that these creative individuals received guidance from the primary creative personnel, such as directors, and secondary creatives like visual effects supervisors, art directors, or animation directors.

He cautioned that the community often exaggerates their ‘I’m an artist’ claim. In reality, numerous individuals within visual effects firms are primarily responsible for adding details like tires, brakes, and body parts to cars – they aren’t creating the car designs. For me, moving from running visual effects companies to producing content, writing scripts, and developing screenplays is a significant jump.

In summary, the clients I serve value top-notch VFX work above all else, wanting nothing less than excellence. They expect delivery on time and at affordable prices. Ross ponders about the potential impact of AI on the VFX workforce when it becomes a significant factor.

Li expressed increased optimism, indicating that creativity is increasingly crucial. “We’ve delved deep into AI, discovering an interesting pattern: it requires 100% to excel in quality, but it takes barely any effort to progress from zero to 50%. … Conversely, advancing from 80% to 85% necessitates a significant investment of resources, around 300 people and 300 graphics cards. Every subsequent step becomes increasingly challenging.” Li foresaw opportunities, “yet I believe these will primarily benefit those in this field who possess extraordinary creativity, artistic flair, and an exceptional ability to discern the unique.

Ross concurred, emphasizing that creative individuals will likely remain sought-after more than ever. Yet, it’s crucial to note that this constitutes only a minor segment of the comprehensive production process related to visual effects.

Ross emphasized to the crowd that AI technology is progressing rapidly, “it may be awkward and encounter issues now, but it’s the quickest learner among mothers available today. Therefore, what we see today won’t look the same in three months, a year, or even three years.

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2025-05-13 03:40