Guide for Creators: Ethical and Effective AI Use

Published Date : 18/10/2025 

From producers using ChatGPT to set designers creating concepts, the film industry is quietly embracing AI. However, the ethical and legal challenges are significant. This guide explores how creators can navigate the AI landscape while protecting their work. 

Beyond the glamorous red carpets and jubilant acceptance speeches, the film industry worldwide harbors a secret: everyone is using AI. From a producer generating ideas on ChatGPT to a set designer creating concepts, and even entire films being pre-visualized before shooting, AI is quietly revolutionizing the industry. But ask anyone to go on record about it, and they’ll be as silent as a tomb.

Why the secrecy? In Hollywood, Bollywood, and their global counterparts, using AI isn’t just about boosting productivity; it’s a moral and legal minefield. The data powering these AI tools often comes from sources that were gathered, scoped, and sometimes stolen without creators' permission, leading to numerous legal battles around the world.

So, how does an industry built on creativity, like the media and entertainment sector in India, navigate this ethically compromised new world order? I attended a fiery FICCI Frames roundtable on October 7 titled “AI & the Creator Economy – Adapting to the New Normal” to find out.

Netflix's Green Light vs. YouTube's Red Flag

The roundtable revealed an industry split right down the middle. Some are in favor of allowing AI to unlock the creative potential of India, while others advocate caution. Netflix, for instance, has published an AI rulebook that encourages transparency. If AI is used, creators must disclose it. This approach allows AI-generated content but ensures transparency.

On the other hand, YouTube is more stringent. It blocks monetization for fully AI-generated videos, aiming to prevent the flood of soulless, AI-generated listicle content. However, creative uses of AI are still allowed to monetize, showing a nuanced approach to handling AI-generated videos.

The Copyright Clash: Darth Vader vs. The Machines

The central question is: If you create something with AI, who really owns it? The Midjourney vs. Disney saga is a prime example. When users started generating images of characters like Darth Vader and the Minions, Disney’s legal team got involved, slapping lawsuits on Midjourney and labeling them as “copyright free-riders” and “bottomless pits of plagiarism.” This has sent a chill down every creator’s spine.

Veterans like Munjal Shroff, the roundtable's convener and cofounder of Graphiti Multimedia, have seen AI replicate their iconic animated characters with 95% accuracy, leaving them feeling helpless. The fear of plagiarism by AI and the risk of being sued for using generative AI have left the industry in a legal and moral quandary.

Google offers a potential solution by providing legal indemnity to its enterprise Workspace customers using Gemini. If you get sued for what you create with their AI, Google’s lawyers have your back. However, this doesn’t address the issue of AI models trained on uncompensated data.

The Creator's Double-Edged Sword

Amidst the chaos, there's potential for genuine magic. A music producer shared how AI has empowered indie artists to create without gatekeepers. However, when using consumer-facing, generic AI tools, the risk of legal liability increases. These tools, trained on a murky pool of uncompensated data, can be a legal minefield.

Lost in (AI) Translation

One of the most interesting points raised was the cultural representation gap in AI models. When asked to create an ‘Indian woman,’ the system often generates a native American woman. This highlights the need for local AI models trained on India’s rich and diverse culture. The government of India has allocated thousands of crores to support the development of these models, recognizing the urgent need to build a robust AI ecosystem.

What Happens Next?

The FICCI Frames roundtable was just the beginning. The industry is calling for a guidebook or rulebook that addresses consent, ownership, and transparency in AI use. Some believe that instead of imposing strict regulations, it’s best to let people figure out what to do for themselves. The message is clear: AI is not the villain but a powerful, untamed force. The challenge is to create frameworks that protect creators without stifling creativity. Thanks to FICCI, the conversation has begun, and the next scene in this AI soap opera is being written every day. 

Frequently Asked Questions (FAQS): 

Q: What is the main ethical concern with using AI in the film industry?

A: The main ethical concern is that the data powering AI tools is often gathered, scoped, and sometimes stolen without creators' permission, leading to legal battles and moral dilemmas.

Q: How does Netflix handle AI-generated content?

A: Netflix has published an AI rulebook that encourages transparency. If AI is used, creators must disclose it, allowing AI-generated content but ensuring transparency.

Q: Why is YouTube blocking monetization for fully AI-generated videos?

A: YouTube is blocking monetization to prevent the flood of soulless, AI-generated listicle content. However, creative uses of AI are still allowed to monetize.

Q: What is the Midjourney vs. Disney lawsuit about?

A: The lawsuit involves Midjourney users generating images of characters like Darth Vader and the Minions, leading Disney to sue Midjourney for copyright infringement.

Q: What is the government of India doing to support the development of local AI models?

A: The government of India has allocated thousands of crores to support the development of local AI models trained on India’s rich and diverse culture, recognizing the urgent need to build a robust AI ecosystem. 

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