Don’t get too drawn in by an ad. JK is pumping his AI startup here, he is intentionally exaggerating to generate surprise and interest to pitch to indies, knowing full well that high quality animated films that make a lot of money will continue to require large staffs and large budgets and take a long time to make.
If independent animation is super cheap and easy to produce, then how will indies make any money and support themselves? It’s already extremely difficult, and lowering the costs might only bring in more people with less skill and make that problem worse.
If you’re talking about a $200M Pixar film, on the other hand, cutting costs by 99.9% means a budget of ~$200K. Think about it: that would end up being a middling 1 year salary for a single person (especially if there’s any ancillary costs like benefits, software and equipment, office rent, etc..) They certainly can’t get any A-list Hollywood voice actors for that much. They can’t record the music for that much. Pixar will never be able to make a full length movie for a $200k budget, and they don’t actually want to, because that would signal low quality and low effort. Going too cheap would mean completely abandoning their aspirational status.
And don’t forget the marketing budgets are in the tens to hundreds of millions, which will not go down just because of better animation tools. It doesn’t make sense to dump that much marketing money into a product that only costs pennies to produce.
Animation production costs have gone down steadily over time, and animation is far more accessible to independent animators now than it was 20 years ago, and that will continue. Big Budget movie studios have historically used those savings to hire more people, increase the quality, and continued to spend more or less exactly the same amount of money (or more) per film. Budgets are higher now than they were on Toy Story, same goes for VFX, and I think it’d be quite safe to predict the general trend for movie budgets that has lasted around a hundred years to continue for the next ten, with or without AI.