AI-Native Studios Can Create Original IP, VFX Veteran Says at Busan

The intersection of artificial intelligence and traditional filmmaking took center stage at the recent Busan International Film Festival, where industry veterans gathered to discuss the future of visual effects and production pipelines. Speaking at the InnoAsia AI Creators Camp during the Asian Contents & Film Market, Hong Jae Cheol, a producer-director at Viscode and an alumnus of Industrial Light & Magic, shared his perspective on how technology is reshaping the cinematic landscape.

Hong argued that the film industry is undergoing a fundamental shift. Rather than simply using artificial intelligence to generate isolated, individual images, creators are now integrating AI tools into complete, end-to-end production workflows. This transition marks a departure from experimental novelty toward practical, industry-grade implementation. According to Hong, small and nimble AI-native companies running automated pipelines possess a distinct advantage when it comes to developing and launching entirely original intellectual property.

Despite the rise of agile newcomers, traditional studios are far from obsolete. Hong emphasized that established players retain powerful structural advantages that automated pipelines cannot easily replicate. These enduring strengths include multi-million-dollar franchises, robust physical production infrastructure, deep pools of experienced talent, and expansive worldwide distribution networks. Consequently, the future of cinema is unlikely to be characterized by the wholesale replacement of major studios by tech startups.

Instead, a hybrid model is emerging where AI and human expertise operate in close partnership. Hong contrasted traditional live-action and visual effects processes—which traditionally require exhaustive 3D asset creation, animation, rendering, and compositing—with modern AI-assisted workflows. In the new paradigm, actors perform on controlled physical sets while generative intelligence supplies background environments and visual elements. Skilled visual effects artists then step in to handle precise tracking, seamless integration, and final polishing.

Practical applications of artificial intelligence are already expanding across various departments, including VFX, animation, and broader filmmaking operations. Current tools streamline labor-intensive tasks such as rotoscoping, digital cleanup, previsualization, character design, camera testing, and environment creation. These efficiencies reduce costs and shorten timelines for independent creators.

Adding a creative perspective to the discussion, Mark Wachholz, chief creative director of Berlin-based Dreamkite Studios, spoke about the artistic implications of the technology. Known for award-winning AI films such as 'The Cinema That Never Was' and 'Cérémonie,' Wachholz described AI co-creation as a unique invitation for filmmakers to relinquish a degree of strict control and embrace serendipitous moments of surprise.

Ultimately, the dialogue at Busan points toward a collaborative future. As AI-native startups innovate with original intellectual property and traditional studios leverage their distribution might, the cinematic arts will continue to evolve, blending automated efficiency with human storytelling and high-end visual craftsmanship.