Deloitte predicts that modern generative AI video models, which approach Hollywood quality and appear to significantly enhance independent video production, could trigger regulatory action in the US as early as 2026.
Why it's important: The ability for anyone to create realistic videos and publish them as “news” or branded content to potentially millions of people could increase the potential for abuse and strengthen regulators' efforts to shut down new media. In 2026, social platforms may be forced to use AI and data capabilities to better manage the content they generate.
In numbers: People in the U.S. are already wary of the use of generative AI in media, according to Deloitte's 2025 Digital Media Trends report, based on a survey of 3,595 U.S. consumers.
- 64% of consumers surveyed agree that generative AI on social media is dangerous.
- 76% agree that online content creators should be transparent about when and where they use generated AI in their content.
- 53% believe online content creators who use generative AI are not authentic.
Empower your creativity with new generation tools. Generative video models can create short clips of high-quality video and audio that are nearly indistinguishable from “real” content. Generative AI is relatively easy to use and cost-effective, allowing some creators to try new ideas with a much lower risk of failure and quickly test creative concepts in the competitive social video market.
- Generative AI and video tools enable cheaper and faster content creation, eliminating more microtasks in production, distribution, and measurement.
- Many tools focus on shortcuts that save time and money, such as quickly generating videos from scripts or generating clips with one click, allowing creators to quickly test variants.
- Other tools allow creators to generate their own AI avatars while engaging audiences and increasing personalization at scale.
- Generative AI tools can also support non-generated AI content with fast edits such as removing “ummms,” silence, and bad takes. Fix shaky camera shots. Automate dead space removal.
- Multilingual dubbing tools give you access to foreign language audiences, increasing your engagement and advertising revenue potential.
- These features allow Creator Studio to generate content faster, target audiences, measure results, and repeat the process. This can destroy the economics of content and lead to exponential content growth.
Generative AI could threaten Hollywood: According to Deloitte's 2025 Media and Entertainment Outlook, some major studios and publishers are considering generative video but are hesitant to incorporate it into their productions. This wariness may stem in part from challenges from talent as well as fear of premium content being compromised by synthetic media.
- The 2023 Screen Actors Guild/American Federation of Television and Radio Artists strike included demands to limit the use of generative AI in productions.1
- Hollywood studios are often overburdened with high production costs, and may hope that generative AI will eventually ease this burden.
- While some Hollywood studios are working to stem advertising losses from the decline of their linear TV business and shift to streaming video services, many social platforms are increasing their digital ad spending even further.
- Social platforms may face another boom in the amount of video content they must distribute and manage, some of which may fall into copyright infringement.
- Social platforms are at risk of overwhelming their audiences with “AI slop” and rapidly declining credibility ratings.
Conclusion: If anyone can create and distribute realistic videos, and video evidence is no longer a reliable form of truth, synthetic media, AI slop, and disrupted business models may pale in comparison to societal challenges.
- Social platforms will need to work on developing and integrating watermarking, AI labeling, and ways to track and reveal the origin of all content (including advertising) uploaded to or generated by their services.
- Given the potential for political manipulation and consumer deception, regulators may work with platforms to establish stronger guardrails for generated content.
- In the United States, Section 230 of the Communications Decency Act, which has shielded open platforms from liability for the content they host, could be challenged if social platforms do not pre-empt these accelerating risks.
- Social platforms can develop more powerful compliance automation, such as compliance agents that monitor the output of other generation tools, to quickly respond to large-scale violations.
For more information, read the full report.
—Chris Arkenberg, Deloitte Services LP, research leader in Deloitte's Center for Technology, Media and Telecommunications (TMT). Gillian Crossan, global leader in the TMT industry, Deloitte Consulting LLP. Tim Bottke, Global Leader, Telecoms, Media and Entertainment, Deloitte Germany
