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Tilly Tax Proposal Emerges as Screen Actors Union Confronts Growing Use of AI in Hollywood

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January 30, 2026
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Hollywood is once more on the crossroads of artwork and technology, as SAG-AFTRA, the outstanding actors’ union, considers introducing a brand new royalty machine to cope with the upward thrust of AI-generated virtual performers. The highlight is on a brand new idea informally dubbed the “Tilly tax,” which can see studios required to pay right into a union-controlled fund each time artificial actors take middle level.

The choice to pursue this “Tilly tax” comes as worries over synthetic intelligence in leisure attain new heights. The ongoing debate intensified following the fantastic 2023 actors’ strike, wherein AI and its effect on jobs have become a imperative factor of contention. The mind-blowing emergence of virtual characters—just like the much-buzzed-approximately Tilly Norwood—has made actors more and more more frightened approximately their long-time period process security. While preceding strike negotiations netted a few protections, many union contributors continue to be skeptical that modern measures pass a long way sufficient to cope with the hastily converting virtual landscape.

SAG-AFTRA isn’t always expecting its modern settlement to lapse earlier than tackling those problems head-on. Union representatives and enterprise officers are set to start negotiations with studio heads as quickly as February, numerous months earlier than their modern settlement expires on June 30, 2024. This early begin is visible as a signal of simply how urgent—and controversial—the difficulty of AI has grow to be for the leisure business. Adding to the intrigue, Greg Hessinger, the newly appointed lead negotiator for the Alliance of Motion Picture and Television Producers (AMPTP), is predicted to convey a greater open-minded technique to those hard conversations.

The “Tilly tax” is a imperative demand, meant to assure that human performers are compensated while AI creations stand in for flesh-and-blood actors. It sits along different large negotiation subjects consisting of streaming residuals, exclusivity clauses, and the necessities for self-taped auditions, which many actors argue require luxurious investments in domestic studio equipment. Residual bills for content material on streaming structures continue to be every other sore spot, as a few actors sense shortchanged through latest compromise agreements that fell brief of expectations.

Actor frustrations are palpable, mainly across the perception that the “Tilly tax” can be a patchwork repair to an existential problem. As highlighted through performer Erik Passoja, this degree is visible through a few as a ultimate resort, instead of a real answer for protective conventional careers withinside the face of hastily advancing technology. For the ones on level and screen, the AI debate isn’t always simply theoretical—it touches the center in their livelihoods, their innovative control, and the price positioned upon their paintings in an enterprise dashing to include the virtual future.

Industry observers observe that SAG-AFTRA’s efforts to steady significant reforms are being carefully watched, because the final results ought to set the same old for the way different innovative industries reply to AI’s encroachment. With extreme negotiations set to begin, the leisure global could be looking to peer whether or not this new tax can chart a direction toward sustainable stability among human artistry and technological innovation.

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