Last week, the International Alliance of Theatrical Stage Employees (IATSE) reached an agreement with major studios regarding the use of artificial intelligence (AI) as a tool within the film industry. The deal, which was released over the weekend, outlines several provisions aimed at ensuring workers' rights and benefits are protected amidst the integration of AI technology.

Under the agreement, film crew members now have the right to request a "consultation" with their employers regarding the implementation of AI in their work. Additionally, a committee will be established to provide AI skills training and prevent the outsourcing of AI tasks to non-union labor.

To further emphasize the analogy of AI as a tool, the contract allows workers to charge a "kit rental fee" if they use their own AI systems, similar to fees for sound recording equipment or other employee-owned gear. IATSE contracts, which already provide severance pay and retraining in cases of job losses due to "technological change," will now extend these provisions to include job displacements caused by AI.

One notable addition to the agreement is the inclusion of language that ensures no employee will be compelled to input prompts that displace other union workers. This provision aims to address the concerns raised during the strikes last year by the Writers Guild of America and SAG-AFTRA, who also secured deals granting creators control over AI usage within company policies and compensation guarantees.

The terms negotiated by IATSE differ slightly due to the union representing a broad range of disciplines, including hair stylists, boom operators, editors, and cinematographers. However, there is a parallel protection to the SAG-AFTRA agreement, wherein IATSE workers must provide separate consent for any AI scanning, and scanning cannot be made a condition of employment.

To ensure transparency and address members' concerns, the union plans to hold a series of town hall meetings ahead of the ratification vote. Throughout the negotiations, IATSE has consistently highlighted the potential benefits AI can bring to workers, expressing hope that efficiencies and advantages from AI implementation will trickle down to film crews.

Under the agreed terms, employers still retain the right to prohibit employees from using AI in their work. However, if AI usage is permitted, employers will provide indemnity to workers from legal liability, except in cases of "gross negligence or willful misconduct."

Regular meetings with individual employers and a bi-annual meeting with the studio group have also been established to discuss AI-related matters. The AI terms were finalized before the conclusion of negotiations last week, with further discussions revolving around funding streams for benefit plans and general wage increases. The final deal includes a 7% wage increase in the first year, followed by subsequent increases of 4% and 3.5%.

Furthermore, the health and pension funds of IATSE members will be bolstered by additional funding of over $700 million from the employers. This increase is aimed at covering a significant shortfall caused by the pandemic and the previous strikes in the industry.

The contract guarantees that there will be no increase in healthcare costs for employees or their dependents and that health benefits will remain intact, as stated by the union in its summary of the terms. It is worth noting that the correction has been made to an earlier version of this story, clarifying that the contract indeed provides severance for job losses resulting from AI, as existing contracts cover severance pay for losses due to "technological change," which encompasses AI.

Overall, the agreement between IATSE and major studios signifies a significant step towards balancing the integration of AI technology in the film industry while safeguarding the rights and well-being of workers.