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(NewsNation) — China’s $14 billion microdrama industry has embraced artificial intelligence at a scale that could preview what’s coming for Hollywood, according to actor, writer and SAG-AFTRA member Joe Flanigan.
“This is a huge warning sign, and it comes at the tail end of a lot of other exacerbating issues in Hollywood, like streaming and everything else,” Flanagan said on NewsNation’s “Jesse Weber Live.” “So, it’s hitting Hollywood very hard.”
About 95% of microdramas produced in China during the first three months of 2026 were entirely AI-created, according to the state-run People’s Daily. The vertical, minute-long dramas have used AI to generate scripts, backgrounds and virtual actors at a fraction of traditional production costs, cutting into jobs for actors and crew.
Flanigan, known for roles on “Stargate: Atlantis” and “General Hospital,” said the shift raises deeper questions about storytelling itself.
“Storytelling is the fundamental vehicle of transmitting information in civilization,” he said. “What happens when the narrative that portrays the human experience, love, death, grief, is no longer told by humans?”
Hollywood is already using AI-generated actors
American studios are already testing AI-generate performers, including the digital creation of Tilly Norwood, which drew backlash after its introduction last year. Disney also released an AI-generated children’s show, “Ozzy Fox,” last week, which has topped a million views.
Flanigan said entry-level jobs in Hollywood will likely be hit hardest first, mirroring past waves of automation in other industries.
“When automation happened, you didn’t see corporate executives lose money,” he said. “You saw people on the assembly line lose their job. And I think that’s how it’s going to work.”
Unions including the Writers Guild and SAG-AFTRA have pushed for AI protections in recent contract negotiations, though Flanigan said the technology is evolving too fast to predict its full impact.
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