AI video market has bounced back from Sora's false start

Production companies are increasingly integrating AI tools into film and television workflows to reduce operational costs, with Netflix now utilizing such technology in nearly a third of its library. This shift indicates that the industry is moving toward practical, cost-saving applications for AI production after initial market volatility. The trend is further underscored by the significant valuation of startups like Higgsfield, highlighting a transition from speculative technology to a standard component of Hollywood studio operations.