AI Drives a New Era of Revenue Expansion
Artificial intelligence, particularly generative models such as
ChatGPT, is rapidly reshaping the global entertainment and media landscape. According to PwC’s latest Global Entertainment & Media Outlook, AI-powered advertising is a primary engine of growth, with the sector on track to become a
$3.4 trillion industry by 2028[1]. In this expanding market, AI is enabling companies to reach consumers with unprecedented precision, dynamically tailor content, and accelerate revenue expansion.
Key Drivers Behind Industry Transformation
- Advertising Surges Ahead: Advertising surpassed consumer spending in 2023 and is projected to exceed $1 trillion by 2026, growing at a compound annual growth rate (CAGR) of 6.7% through 2028[2]. Much of this growth is tied to the integration of AI in creative and targeting processes.
- Generative AI Tools: Tools like ChatGPT and other generative AI applications are quickly being adopted for content creation and ad development, enabling rapid ideation, testing, and optimization of campaigns[1][2].
- Shifting Business Models: Traditional media companies are having to reinvent their business models to compete in an AI-accelerated landscape. The use of AI is moving beyond cost reduction to become a central force in value and revenue creation[2].
- Personalization and Efficiency: AI enables highly targeted advertising by processing vast amounts of consumer data, delivering relevant content and ads in real time. This leads to more effective marketing strategies and higher returns on investment.
Opportunities and Challenges Ahead
The speed and scale at which AI can produce high-quality content — and the resulting decline in production costs — pose both opportunities and concerns for the industry. While AI offers new avenues for value creation, questions remain about how generative AI will translate into sustainable revenue growth as well as its impact on content creators’ rights[2].
- Job Market Impact: The adoption of AI in entertainment and media is generating new types of jobs while accelerating the need for upskilling in AI-related competencies. PwC’s 2025 Global AI Jobs Barometer shows higher revenue growth in AI-exposed industries, with a notable wage premium for workers skilled in AI applications[3].
- Regulatory and Ethical Considerations: Industry debates continue around creator compensation and the responsible use of AI-generated content, highlighted by recent negotiations in Hollywood and other creative sectors[2].
Looking Forward: The Future of Entertainment and Media
Industry participants are urged to focus on how AI’s creative power can open new experiences and revenue streams while ensuring ethical use and fair compensation. As AI tools become further embedded in content creation and advertising strategies, companies equipped to adapt will be best positioned to capitalize on this tectonic shift in the global entertainment and media landscape[1][2].
For more information, visit PwC’s Global Entertainment & Media Outlook
here.
