Wang Ben Zhi's interview took place before the Lunar New Year, with his start date as a set coordinator set for after the holiday. Nearing the day, he unexpectedly received news that the company no longer needed him. This was because live-action film projects were being adjusted, with most filming canceled to keep up with the trend of AI videos, rendering the "set coordinator" position obsolete.
Wang Ben Zhi contacted several companies that had previously expressed interest in hiring him last year. He was surprised to find that these companies had either transitioned to producing AI short films or altered their staffing models, converting employees into seasonal collaborators. Several other companies had disbanded entirely.
According to China Business Network, Liu Gang Tao, a staff member at a studio in Xi'an – the capital of China's short film industry – shares Wang Ben Zhi's bewilderment. Last year, Liu Gang Tao updated filming schedules for film crews weekly. By march this year, the number of crews renting the studio had decreased by more than one-half compared to the same period last year.
China's short film market has experienced rapid growth, surpassing the feature film market for the first time. In 2020, the market was valued at nearly one billion CNY (Chinese Yuan). By 2024, its scale reached over 50,4 billion CNY.
Xi'an has become a central hub for short film production, with a significant number of companies establishing operations there. In 2023, over 200 short video production companies were founded in Xi'an, accounting for approximately 60% of China's total short film output. This growth led to the emergence of numerous facilities catering to film crews, including the prominent Xi'an Dream Creation Studio, established in 2023, which provides studios and props ranging from rooms and hospitals to cars, horse-drawn carriages, swords, and costumes.
The surge in short films also created a large number of employment opportunities. In 2024, this sector generated nearly 650,000 jobs.
Despite three years of smooth operation, many in the industry found themselves unprepared for the AI short film surge starting this year. By mid-2025, the market was still bustling; however, by the end of the year, AI-simulated human films transformed the landscape, competing with live-action projects. During the Lunar New Year (from the first to the 7th day of the Lunar calendar), short film views in China reached 8,7 billion, with AI-produced content accounting for 30%. In january, the number of AI-simulated human films saw the fastest growth among all short video genres.
Wu Qiang, a producer in Xi'an, highlighted the significant cost difference between traditional and AI filmmaking. He stated that the industry previously required extensive personnel across all stages, including actors, set staff, and designers. Before this year, producing an 80-episode series would incur actor salaries exceeding 300,000 CNY. Wu Qiang needed at least 400,000 CNY to produce a quality film, and if famous actors were involved, the crew also had to coordinate schedules with them.
In contrast, an 80-episode series using AI technology currently costs approximately 100,000 CNY. This substantial reduction is due to the crew no longer requiring actors, studios, or props, needing only a computer.
Wu Qiang said that after much deliberation, he reluctantly accepted losses and canceled all live-action films his company was producing to pivot towards AI short films. Currently, prominent companies are actively recruiting workers with expertise in artificial intelligence technology.
According to The Paper, the performance of AI films has far exceeded industry predictions. 2026 is expected to be the year AI short films explode, potentially leaving many actors jobless. With current technology, a three-person crew can produce an 80-episode short film series in 5 days.
AI presents new opportunities for those who adapt and seize them. According to Hangzhou Daily, in 1/2026, Peng Qing Yun established his own company in Hangzhou, specializing in AI short film creation and AI training. He had previously worked as a graphic designer for a company but became unemployed in 2024 due to the advancement of artificial intelligence.
Leveraging his experience and artistic knowledge, Peng Qing Yun ventured into short filmmaking and achieved success with his debut mythological film, "Chung Than Chi Chien" (Battle of the Gods). The film's impact led to continuous orders for Peng Qing Yun's production services. His current team consists of two people: Peng Qing Yun handles the technical aspects (film production), while the other manages company operations. "Our income primarily comes from producing AI short films for foreign companies, two films per month, with each person averaging several hundred thousand CNY monthly", Peng Qing Yun stated.
Zhang Li Wei, a director and lecturer in media studies, commented, "AI should become the wings for film content creators. Given current development trends, AI short films will evolve into an independent content format, popular not only on video platforms but also venturing onto broader stages." Zhang Li Wei's team is currently researching the application of this technology for feature films and cinematic releases.
Nhu Anh (according to CBN)
