From studios to startups: How filmmakers are building AI businesses 

In March 2025, actor-filmmaker Ajay Devgn launched Prismix, an AI-powered media company aimed at transforming how films, series, music videos, and digital content are produced. Chaired by Devgn, Prismix positions AI as a “creative partner” for filmmakers, brands, and creators, enabling scalable, high-quality storytelling across platforms. The company has also partnered with edtech startup-Get Set Learn-to create AI-driven educational videos, marking a notable crossover between entertainment and learning.

Just last week, Devgn unveiled another venture — Lens Vault Studios (LVS) — in collaboration with his nephew Danish Devgn. The new studio will focus on developing original, technology-driven content for films, streaming platforms, branded projects, and immersive formats.

Filmmaker and AI storytelling pioneer Vivek Anchalia’s production house- Amazing Indian Stories-recently launched an AI-powered Creative Studio. “I am also setting up a second AI-driven studio dedicated to ad film production in collaboration with Value 360 Communications,” says Anchalia, who produced-Naisha-believed to be India’s first AI film. 

Telugu film producer Dil Raju and Tamil music producer Tenma have also set up AI-studios early this year. Industry observers expect several more such ventures in the coming months, as filmmakers race to position themselves as first movers and set new benchmarks in AI-led entertainment.

“Clients who were reluctant to use AI earlier are now open to AI-made campaigns, as it cuts production costs to a fifth or even a tenth,” says Anchalia, who is currently making campaigns for Narayana Health and the Azim Premji Group.

These ventures are not just limited to studies and content production. Noted filmmaker Shekhar Kapur, a strong proponent of AI, for instance, is planning to establish an AI-focused film school in Mumbai’s Dharavi in partnership with Universal Music. Kapur is involved in several AI-driven projects, including the upcoming series Warlord. 

“AI will undoubtedly drive Indian content production even more toward quicker, less expensive, and more individualized narrative, enabling studios and creative agencies to reconsider conventional budgets and timelines, even though AI content is not widely monetized yet on well-known platforms like TikTok and YouTube,” says Pep Figueiredo, COO - PTPL India, ex-SonyLIV. 

Inflection Point for industry 

Global giants had already sensed the urgency. Banijay, for instance, established an AI-Creative Fund last year to empower its producers across 22 territories with tech and innovation. 

The shift reflects a larger trend: AI is no longer confined to back-end tasks but is emerging as a co-creator, opening up opportunities for production houses, brands, OTT platforms, and tech players to experiment with next-generation storytelling.  

“AI in the advertising sector is a tectonic shift in how stories are imagined, produced, and monetised. As per a recent PwC report, from scriptwriting to VFX to personalized ad films, AI can slash production timelines by a staggering 30–40% and cut costs by nearly 20%,” quips Suyash Lahoti, Partner at Wit & Chai Group.  

“With economic pressures forcing sharper efficiency, AI is fast becoming central to how content and campaigns are conceived, produced, and scaled,” noted one marketer. Independent filmmakers, too, are beginning to produce films and web series built almost entirely on AI.

The momentum is backed by market forces. India’s AI market is projected to triple to nearly ₹1.4 lakh crore ($17 billion) by 2027, according to a Boston Consulting Group (BCG) report titled “India’s AI Leap: BCG Perspective on Emerging Challengers.” The study highlights a rapidly maturing ecosystem, supported by more than 600,000 AI professionals, 700 million internet users, and over 2,000 AI startups launched in the past three years.

For the media and entertainment industry, these developments mark a pivotal inflection point when viewed against the scale of India’s advertising industry (₹1 lakh crore) and the entertainment sector (₹2.5 lakh crore).

Democratizing Tool

AI is also being embraced as a democratizing force by independent creators and filmmakers. Shekhar Kapur has called it a “catalyst for breaking the traditional dominance of big studios”. 

Anchalia echoes this sentiment. “My ventures aim to democratize content production. Producers like me are fortunate to have our work streamed on platforms such as JioHotstar or Netflix, but most filmmakers lack those resources. My AI studio is designed to support that talented pool and give them access to the tools they need,” he said.

AI coupled with the rising wave of microdramas with duration between 2–5 minute snackable stories now clocking billions of daily views across Reels, Shorts, and Moj—and we can see a new business model brewing. Instead of waiting for a big OTT drop, brands can churn high-quality, AI-assisted micro-content that hooks audiences instantly, advises Lahoti. 

Meanwhile, filmmaker Ram Gopal Varma has taken an unconventional leap by discarding traditional composers altogether. He now relies on platforms such as Suno and Udio to generate AI-driven music. His forthcoming projects, including the feature film Saree, will feature entirely AI-created background scores — a telling sign of how AI is permeating even the sonic dimension of filmmaking.

Still, Kapur strikes a note of caution: “AI can enhance human creativity but warns against over-reliance, emphasizing that imagination, curiosity, and the courage to embrace the unknown remain irreplaceable in storytelling.”

Meanwhile, challenges in the sector persist—from risks of misuse and concerns around authenticity and IP rights to the discouraging reality that several platforms continue to restrict monetization of AI-driven content, experts noted.