This weekly update covers important developments in how artificial intelligence is changing creative industries worldwide. From Hollywood to advertising agencies, creative workers and companies are dealing with new AI tools that can make art, videos, and other content.

The biggest story comes from the United States, where OpenAI launched a new version of its video-making tool called Sora 2. This tool is much more powerful than the first version. It can take videos of real people and put them into AI-generated scenes with sound effects and talking. OpenAI's boss, Sam Altman, was excited about the launch. He posted on social media that video AI has come a long way and this was a big achievement.

But Hollywood did not share his excitement. Movie studios, talent agencies, and actors' unions quickly spoke out against Sora 2. The main problem is that OpenAI's tool can use actors' faces and famous characters without getting permission first. The company told studios they needed to opt out if they didn't want their characters or actors used. This made Hollywood very angry.

Charles Rivkin, who leads the Motion Picture Association, said OpenAI needs to fix this problem right away. He explained that copyright law protects creators and their work. Warner Bros. studio also made a statement saying that content owners should not have to opt out. The law already says you need permission before using someone else's copyrighted work.

Talent agencies like WME, CAA, and UTA told OpenAI that all their clients would opt out. These agencies represent famous actors like Michael B. Jordan and Oprah Winfrey. The actors' union called SAG-AFTRA was also upset. The union's president Sean Astin said OpenAI's opt-out approach threatens how the entire industry makes money.

Legal experts say this fight shows two very different ways of thinking. Silicon Valley tech companies often move fast and ask for forgiveness later. But Hollywood is careful about protecting its valuable characters and actors. Some lawyers think the strong pushback from Hollywood might force OpenAI to pay for licenses to use copyrighted content.

In other US news, the advertising agency Huge bought a creative studio called Both&Yes. The two founders of Both&Yes, Ken Frederick and Michael Lin, will now work as top creative directors at Huge. They have lots of experience making digital and AI experiences for big companies like Google and YouTube.

This purchase is part of a bigger trend. Advertising agencies are preparing for a future where AI-powered experiences are normal. Jim Coleman, who leads Huge, said the deal shows the company wants to lead the industry through creativity and technology. Many agencies now see AI as a key part of their business plans for the future.

In the United Kingdom, creative workers are worried about losing their jobs to AI. Recently, a production company called Particle6 created a fake AI actor named Tilly Norwood. This computer-generated actor stirred up strong emotions in the entertainment industry. The actors' union Equity called for an end to what they called the Wild West of AI.

Equity said that creativity should be a human activity. They believe AI should be a tool that helps human creators, not something that replaces them. In the music industry, an AI-powered singer named Xania Monet got 17 million streams in just two months, even though she is not a real person. These examples make many creative workers nervous about their future.

The UK government passed a law in June called the Data Use and Access Bill. Creative workers tried to add more copyright protections to this law, but they were not successful. Now the government is running a consultation to figure out how old copyright laws should work in the age of AI.

Christian Zimmermann, who runs an organization that protects artists' copyrights, told reporters that there is currently little ethical AI available. He said AI companies have used artists' work to train their systems without asking permission or paying them. This puts artists in a difficult position where they have to argue why they should be paid for their own work.

Next week, a big conference in the United States called MAICON will discuss these issues. The conference runs from October 14 to 16, 2025. Legal experts will talk about how intellectual property law is changing because of AI. They will discuss questions like: Who owns content made by AI? How can companies protect their brand when AI can copy their style?

Researchers have discovered an interesting problem with AI and creativity. Dr. Joshua Yuvaraj from the University of Auckland explained that AI needs real human work to function properly. If AI is only trained on other AI-generated content, it leads to something called model collapse. This means the AI gets worse and worse until it stops working right. For example, if you keep training AI on AI-made pictures of cats, eventually the pictures look nothing like real cats.

This creates a paradox. Even though some people worry AI will replace human creators, AI actually cannot work without human creativity. Companies are now hiring people specifically to create content that will be used to train AI systems. This is becoming its own industry.