From the Hays Code to Seedance 2.0: Hollywood, Bollywood, and the Urgent Case for AI Transparency in World Cinema

Abstract

The Western film industry, especially Hollywood has been dealing with the impact of new technology for over a century. From the early days of cinema to the
present, the industry has had to adapt to changes like moral censorship, the Hays Code, and the MPAA () ratings system. More recently, the industry has had to
navigate the Digital Millennium Copyright Act and California’s 2025 laws protecting AI performers. This paper looks at how the industry has responded to these
changes and argues that its approach has always been reactive, rather than proactive.
The paper examines the history of the film industry’s response to technological disruption, from the 1910s to the present day. It identifies a pattern of five stages:
the disruption itself, a period of uncertainty, exploitation of the new technology, public outcry or economic crisis, and finally, self-regulation in an attempt to avoid
government intervention. A key example of this pattern is the 2023 strikes by the Writers Guild of America (WGA) and the Screen Actors Guild (SGA), which
were the first major labor actions to focus on the impact of AI on the entertainment industry. India’s digital backend outsourcing providers were hardly hit by this
impact. To this impact above sighted impact, research also explores the global dimension of the film industry, particularly the importance of India’s visual effects
infrastructure to Hollywood. It notes that the emerging legal landscape, including California state legislation and proposed federal laws like the “no fakes act” Act,
will have significant implications for the industry. The recent Seedance 2.0 deepfake crisis in February 2026 highlights the need for urgent action, globally.
My main finding and conclusion is that the film industry’s traditional approach to governance is no longer sustainable in an era of rapid technological change.
Instead, there needs to be a collaborative effort between industry, government, academia, and civil society to develop transparent and disclosure frameworks for
AI in cinema. This is particularly important for India, which is becoming an increasingly important player in the global entertainment industry. India needs to
update its copyright laws and be prepared to deal with the challenges posed by AI-generated content, which will have significant implications for its entertainment
industry and economy