--> OTT platforms tap AI for scripts, videos and virtual sets to cut costs

OTT platforms tap AI for scripts, videos and virtual sets to cut costs

Faced with rising production costs and growing demand for fresh content, streaming platforms are gradually integrating AI tools into creative workflows, say industry experts

by Kanchan Srivastava
Published - June 13, 2025
4 minutes To Read
OTT platforms tap AI for scripts, videos and virtual sets to cut costs

With production budgets under pressure, streaming platforms are turning to artificial intelligence—not just for viewer recommendations but also to assist in scriptwriting, generating storyboards, and building virtual environments.

While ChatGPT is already popular among producers and scriptwriters, Claude (developed by Anthropic) is also gaining traction. It’s being used to generate dialogue variations, enrich scene descriptions, and explore character development. These tools can fine-tune tone and even mimic the writing style of specific individuals.

To manage costs and speed up timelines, several production houses—including large studios—are now integrating AI at various stages of content creation. While adoption is still in its early phase, the use of generative AI in scriptwriting and pre-production is gaining momentum. These tools assist with ideation, drafting, localization, and dialogue generation. 

Smaller studios, in particular, benefit from reduced overheads, enabling them to compete more effectively. In some cases, AI tools can slash production costs by 30-40 percent, according to estimates shared by industry professionals.

“AI tools can streamline storytelling by identifying plot gaps, generating storyboards, and even enhancing scripts. With Claude’s creative input and Perplexity’s precision, we can broaden our narrative horizons,” say producers.

AI is also being used to create virtual sets and environments, says Yubaraj Bhattacharya, Consultant – TV & OTT, Juggernaut Productions (IN10 Media Network). “It’s already visible in ads and music videos—and increasingly in feature films.”

Tools like OpenAI’s Sora and Runway’s Gen-2 are being piloted to simulate locations, compress timelines, and reduce the cost of on-location shoots, creators note.

“Other AI tools are being deployed across writing, editing, and post-production. These include Toolsaday, Sudowrite, ScriptBook, DeepStory, Celtx AI, Runway, Adobe Firefly, Pictory, Descript, Wisecut, Soundraw, Amper Music, Cleanvoice AI, and CinePlanner,” says Pep Figueiredo, COO – PTPL India and former executive at SonyLIV.

According to the FICCI-EY report, these technologies have the potential to cut pre-production costs by 20–30%, enhance productivity, and streamline workflows—without diluting creative depth.

Experts agree. “AI tools can save anywhere between ?40,000 and ?2,00,000 in script development and ?1,00,000–5,00,000 in post-production per project,” Figueiredo noted. “AI is especially transformative for regional and digital-first creators—it levels the playing field without compromising on quality or creative direction.”

Still, not everyone is convinced. Sunder Aron, Managing Partner, Locomotive Global, says, “We have experimented with AI dubbing tools (custom made), but determined that these applications were not yet up to the necessary levels of quality.”

He adds, “I would expect their efficacy and quality to improve in the next 12–24 months. By then, it will become a no-brainer to utilize AI tools for many aspects of sound post-production—including ADR for actors and dubbing into foreign languages. It's just a matter of time before these tools become standard practice.”

AI and India’s OTT Growth

India’s OTT market, one of the fastest-growing globally, reached ?17,500 crore in 2023 and is projected to double by 2028, growing at a CAGR of 14.9%, according to a PwC report.

With over 800 million internet users and soaring demand for video content, paid video subscriptions are also expected to grow 30% over the next two years, as per the FICCI-EY ‘Shape the Future’ report.

As subscriber growth slows and competition intensifies, cost-efficiency is emerging as a key driver of innovation. Industry leaders believe AI is playing a pivotal role in helping platforms stay agile and scalable.

Even major players—including Netflix, Prime Video, MX Player, Disney+ Hotstar, Zee5, and SonyLIV—who collectively invested around ?2,500 crore in 2024 on original programming and content acquisition, are struggling to deliver consistent hits. An internal report reviewed by e4m suggests that only about 4% of OTT shows in 2023 achieved measurable success. The rest failed to connect with audiences.

Experts attribute this trend to repetitive themes, limited experimentation, and uneven budget allocation—issues that AI is now being positioned to address.

In fact, the 2024 FICCI-EY report noted a 14% year-on-year dip in investment toward premium content, signalling a more cautious, ROI-focused approach by platforms.

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