The Walt Disney Company is reportedly gearing up for a groundbreaking AI initiative that could reshape its production landscape, sources told TheWrap. This ambitious project, involving “hundreds” of team members, is expected to center on post-production and visual effects, with potential applications in parks and experiences – though not customer-facing.

While Disney hasn’t confirmed specifics, a company insider did hint at AI initiatives being in the works, albeit not as expansive as some sources suggest. Even with limited details, whispers about this pivot are making rounds in tech circles and Wall Street, where many view Disney’s move as a smart adaptation to the evolving demands of media production.

Disney is not alone here; it joins companies like Lionsgate, which has already tapped into AI through a partnership with Runway for enhanced pre- and post-production processes. “Disney has always leaned into technology partnerships,” says LightShed Ventures analyst Rich Greenfield. “It makes a tremendous amount of sense that Disney is not only exploring AI but also investing significant resources to leverage it.”

CEO Bob Iger’s stance on AI reflects Disney’s history of blending tech with storytelling innovation, dating back to Walt Disney himself. In May, Iger reminded audiences that Disney’s foundation was built on pioneering technology to tell better stories. “Don’t fixate on its ability to be disruptive,” he said at the Canva Create showcase. “Fixate on its ability to make us better storytellers and to reach more people.”

For Disney, one of the world’s most data-intensive entertainment companies, AI offers an unprecedented toolkit to refine everything from production processes to customer experiences. With countless data models tracking everything from guest spending habits in theme parks to streaming habits on Disney+, Disney is primed to harness AI in uniquely powerful ways.

That said, AI’s integration won’t come without challenges, especially in an industry grappling with questions around job security and the impact on creative roles. Since 2023, Disney has already reduced its workforce by nearly 7,000 roles, putting additional pressure on departments already adapting to new tech-driven workflows. The timing also intersects with ongoing unionization efforts within visual effects teams, including those at Marvel and on the “Avatar” sequels, where AI’s role is a sticking point.

Disney’s deeper dive into AI could be a defining moment for Hollywood, setting the pace for how tech and creativity intersect in an evolving production landscape.