Insights: Strategic Priorities in Media and Entertainment
Chapter 4.
AI and Automation: Transforming Production Economics

Artificial intelligence and automation are fundamentally reshaping media production and distribution economics. Beyond the recent attention on generative AI, these technologies are enabling media organisations to produce more content at lower costs while enhancing personalisation and engagement. Our research reveals that leading companies are implementing AI strategically to address specific business challenges rather than pursuing technology for its own sake.
Richard Huang from BBC describes how AI is creating practical value in content production: "We're currently testing whether AI can provide accurate live transcriptions for coverage of sports, particularly local clubs. Using generative AI to listen to radio broadcasts and create articles makes covering a wider range of sports economically viable. For big matches, we'll always send journalists—you need the quality and expertise of humans—but for smaller local clubs with hundreds of matches monthly, it's prohibitively expensive."
This targeted application of AI demonstrates how technology can expand content coverage without sacrificing quality. Huang continues: "The voice-over technology has improved dramatically. Some tools we're testing now are genuinely difficult to distinguish from human voices. The marginal cost is minimal—you can process one original video and quickly generate multiple highlights with different voiceovers to attract diverse audiences."
Our polling indicates that "AI/automation integration" features prominently among current technology priorities for media platforms, with "customer satisfaction" and "revenue per user" cited as the metrics most influencing technology investment decisions. This focus on customer-centric metrics suggests that AI implementations are increasingly being evaluated based on their impact on viewer experience rather than merely operational efficiency.


Angus Mitchell from Channel 4 describes their balanced approach to AI adoption: "AI is a key enabler for efficiency – reducing operational costs in areas like large file transfers, enhancing targeting through AI-driven segmentation for addressable ads, and supporting creative processes with AI-assisted editing and post-production."
Crucially, Channel 4 sees AI as augmenting rather than replacing human creativity: "With AI, we're not looking to replace creators, but empower them. We've launched a consortium to explore AI's role in supporting underrepresented content creators and examining potential bias within AI systems. This aligns with our remit of celebrating the UK in all its glory."
Mitchell also highlights emerging commercial applications: "One particular opportunity we're investigating relates to the 'fat end of the long tail' of advertisers. Television naturally has more barriers to entry because it's a regulated environment. We're examining how AI might create a more accessible journey for smaller advertisers who might otherwise find the compliance requirements challenging."
Daniela Boquete notes that AI has long been foundational to streaming platforms: "AI has been fundamental to streaming platforms even before the current generative AI boom. Algorithmic activities like content recommendations, predictive analytics and personalisation have long been core to service optimisation and automation." She describes how this is expanding: "Today, this is extending with natural language interactions. Smart TV penetration is increasing, with voice search-enabled remote controls allowing more intuitive communication between users and devices."

The strategic implementation of AI technologies enables media companies to:
- Scale content production across more niche interests
- Personalise content and advertising at an individual level
- Optimise distribution and delivery systems
- Generate new value from existing content libraries
- Reduce barriers to entry for new advertisers
- Support creativity and inclusion in content creation
For organisations evaluating AI investments, the key questions should focus on specific business outcomes rather than technologies themselves. As Mitchell notes when discussing technology evaluation: "We test viability through small closed tests or soft launches with selected brands and advertisers. We typically look at a 3 to 5-year horizon for return on investment."
Despite its transformative potential, leading organisations maintain a balanced perspective on AI implementation. Mitchell explains Channel 4's approach: "While embracing these opportunities, we're also mindful of challenges around bias, transparency, and creative integrity through our advisory group responsible for AI deployment."
The evolution of AI in media represents a shift from general-purpose tools to targeted applications that address specific business challenges. As AI capabilities continue to advance, the organisations that implement them most effectively will focus on augmenting human creativity and judgment rather than merely automating existing processes.

Key Insights Recap
AI and automation are transforming media production economics, enabling companies to produce more content at lower costs while enhancing personalisation capabilities. The BBC's experiments with AI-powered sports coverage and Channel 4's approach to AI in advertising demonstrate how targeted applications can address specific business challenges.
Quick Action Guide

Key Insights Recap
AI and automation are transforming media production economics, enabling companies to produce more content at lower costs while enhancing personalisation capabilities. The BBC's experiments with AI-powered sports coverage and Channel 4's approach to AI in advertising demonstrate how targeted applications can address specific business challenges.
Quick Action Guide



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