Lionsgate creates chief AI officer role, reports revenue grew 15% in Q3

Lionsgate Studios is leaning further into artificial intelligence (AI) with the appointment of its first chief AI officer.

Kathleen Grace

Kathleen Grace, who was previously the chief strategy officer at Vermillio, a platform built to license and protect IP and likenesses, will spearhead Lionsgate Studio’s evolving use of AI.

The company said Grace will work closely with vice chair Michael Burns and other top execs to “provide tools to serve the creative vision of its filmmakers, create opportunities for new efficiencies in its production, marketing, distribution and administrative operations, and spearhead initiatives to protect the IP of the studio and its talent partners.” She will report to CEO Jon Feltheimer, as well as being part of the company’s “senior decision-making team.”

The appointment comes around 16 months after Lionsgate became the first major US studio to publicly announce a partnership with an AI company. That deal, with New York-based Runway, was greeted with consternation at the time, but many of the other US studios have since started to formally work with AI firms, most notably Disney through its recently inked OpenAI deal.

During her time at Vermillio, Grace’s role was to ensure content owners and talent could track, authenticate and monetise the use of their work in AI models. She also previously led New Form, a digital studio backed by Discovery Communications, Ron Howard and Brian Grazer, where she sold more than 20 series to networks and platforms.

In another previous role, she established creator studios in LA, New York, London and Tokyo as the lead of YouTube’s global Spaces initiative.

“Kathleen understands the AI ecosystem from the perspective of creators and IP holders alike, and she is the right person to lead our team forward in this exciting, complex and nuanced environment,” said Feltheimer.

“Her AI expertise and digital media savvy will help us grow alongside our talent partners as we create new opportunities, establish new safeguards and execute new strategies.”

Lionsgate announced the new position at the same time it reported third-quarter earnings, with revenue climbing around 15% to US$724.3m year-on-year.

Within that, revenue in its motion picture division grew 35% to US$421.2m, driven by films such as The Housemaid and Now You See Me Now You Don’t, while its TV production division saw revenue fall 25% to US$303.1m and profit drop 8% to US$55.7m.

Lionsgate said the declines on the TV side were due to the timing of episodic deliveries. That was offset, in part, by growth in library sales, with revenue growing 10% to US$1.05bn for the trailing 12-month period.