AI, Lively-Baldoni Trial & Hollywood Labor Talks: Inside the Industry

Hollywood Braces for AI Impact as SAG-AFTRA Talks Resume

Los Angeles, CA – As actors and studios began negotiations this week for the next SAG-AFTRA contract, a new and potentially disruptive force loomed over the bargaining table: artificial intelligence. The possibility of “synthetic performers” taking jobs from human actors has prompted discussions around a proposal nicknamed the “Tilly tax,” a royalty payment to the union if studios opt to use AI-generated actors, a concept already secured by SAG-AFTRA in its 2025 commercials contract.

The emergence of AI performers like Tilly Norwood, a fully computer-generated actress, has shifted the conversation from hypothetical concerns to a tangible threat. While Norwood hasn’t landed a major role, her existence underscores the rapidly evolving capabilities of AI in the entertainment industry.

The studios’ initial reluctance to openly discuss their AI initiatives has given way to a more cautious acceptance, driven by the potential to reduce costs and accelerate post-production processes. This shift was highlighted by a recent viral AI-generated fight scene featuring Brad Pitt and Tom Cruise, created by Chinese company DeepSeek, which drew criticism from the Motion Picture Association.

Director Daniel Roher, whose documentary “The AI Doc” is set to release in March, shared an experience of receiving script notes he suspected were AI-generated, raising questions about the authenticity of creative input. The Academy’s policy on AI use, described as “Don’t Ask, Don’t Tell,” further complicates the landscape.

Alongside the AI debate, the SAG-AFTRA negotiations are being led by new figures. “Lord of the Rings” star Sean Astin now holds the role previously occupied by Fran Drescher, while Greg Hessinger represents the studios, replacing Carol Lombardini.

Blake Lively and Justin Baldoni’s Legal Battle Heads to Court

New York, NY – The contentious legal dispute between actors Blake Lively and Justin Baldoni reached a critical juncture this week as the pair met in a Manhattan courtroom for settlement talks on Wednesday, February 11, 2026. The meeting, the first time the two have been in the same room in years, was prompted by a judge’s push for a resolution to their complex legal battle stemming from the production of the 2024 film “It Ends With Us.”

Lively filed a lawsuit in December 2024 alleging sexual harassment and retaliation against Baldoni, who also directed the film. The case has since spiraled into a public spectacle, with unsealed court documents revealing private communications involving Taylor Swift, Matt Damon, Sony CEO Tom Rothman, and others.

The legal proceedings have stalled both actors’ careers, with Lively’s upcoming film, “The Survival List,” and Baldoni’s projects facing uncertainty. The case has also embroiled Baldoni in additional legal challenges, including a breach of contract suit from his former publicist and lawsuits regarding insurance coverage for his legal fees.

While both Lively and Baldoni remained silent to the media following the settlement conference, Baldoni’s attorney, Bryan Freedman, stated that their goal is “to win.” A trial is currently scheduled to begin on May 18, 2026.

Romance Author Eyes Reality TV Stardom

In other Hollywood news, romance author Colleen Hoover is reportedly seeking a spot on the Peacock reality show “The Traitors,” according to producer Lauren Levine. This move reflects a broader trend of studios and streamers actively mining the romance genre, reminiscent of the early 2000s boom in comic book adaptations.