Lionsgate’s Michael Burns Says AI Will Save “Tens And Tens Of Millions Of Dollars A Year”

Lionsgate Vice Chairman Michael Burns says AI will save the company “tens and tens of millions of dollars a year” across film and TV production as well as areas like FAST channel curation.

Along with the cost efficiencies, which studios and creatives alike have been touting of late, Burns even included AI firms as “wild-card” candidates to one day buy Lionsgate, long considered a ripe acquisition target.

“It’s like Moore’s law on crack,” Burns said Thursday at the Gabelli Sports & Media Symposium in New York, alluding to the tech industry maxim that posits regular gains in computer processing power, powering innovation. “It is going so fast. If you own the existing IP, you get a lot of different ways to monetize it. So, I think it’s exciting.”

At a recent meeting, Burns recalled, colleagues showed him “all the stuff we’re doing in the world of AI, which is with our movies, specific shots, previewing the movie, figuring out how to budget.” AI, he added, “is going to save us tens and tens of millions of dollars a year.” For context, Lionsgate’s film and TV studio business took in more than $3 billion in the most recent fiscal year, according to SEC filings.

While most media and streaming companies have been trumpeting the efficiencies of AI, the topic remains a delicate one given the sensitivities in the creative community about the future of copyrighted work. The Writers Guild and SAG-AFTRA managed to strike contract renewals with the AMPTP in recent months, averting a repeat of the strikes in 2023 that were fueled in part by AI anxiety. Still, considerable uneasiness remains about protection and guardrails for artists.

Executives leading media and streaming companies who have been quizzed about their AI strategies generally take pains to emphasize the involvement of human creators and the need for developing “responsible” protocols. They also generally refrain from venturing any dollar figures for the potential savings, stressing the innovation aspect of embracing new technology.

Asked by a moderator about the legal risks involved in systematizing AI, Burns said he expects a viable set of protections to soon be established via a collaborative process among stakeholders. “Actors’ likenesses, you know, with cooperation, I think that there’s a participation with them. … everybody can monetize it together.” (Hasbro this week announced the launch of an AI studio designed to let third parties use company properties like Transformers, for a fee.)

Lionsgate, which has a deep library of films and TV episodes, has long sought ways to make money on those titles. AI, Burns said, speeds up the process of curating FAST channels, AVOD services or other offerings.

The topic of AI linked back to a longstanding area of speculation around Lionsgate, which is its suitability as an acquisition target. Particularly since splitting from Starz last year, the studio seems to be attractive, though industry and Wall Street pundits have observed that since Burns and CEO Jon Feltheimer took the reins of the company in 2000. Instead of selling, it has grown by being a prudent buyer.

Today’s M&A marketplace, Burns said, is ripe for deals but some challenges for partners to get the math to work.

“Everybody has the same issue, which is you want to show growth and you only have two ways to show growth, which is organically, which is really hard to do, or inorganically, which is by doing deals,” he said. “I think we’re an interesting strategic partner.”

As to who that strategic partner could be, Burns didn’t rule out private equity firms but also said media peers would be candidates. He also classified sovereign wealth funds and AI companies as “wild cards” in the mix.

“You look at some of these AI companies with staggering valuations and growth rates that are just incredible,” he said. One such entity is Runway, which initially teamed with Lionsgate in 2024, and earlier this year raised funds at a $5.3 billion valuation. “I made a joke with [CEO Cristóbal Valenzuela] when we first did our deal with him, I said, ‘You know, maybe someday, we’ll buy you.’ Now, he’s probably smirking at me, saying, ‘Well, let’s take a look at how our valuation turns out.’”