AI-Native Studios Compete With Legacy Rivals as VFX Veteran Hong Jae Cheol Predicts Shift at Busan

KUALA LUMPUR, 11 OCTOBER 2026 —

AI-native studios can carve niche in original IP while traditional studios retain edge in franchises, VFX veteran Hong Jae Cheol tells Busan Film Festival

Speaking at the InnoAsia AI Creators Camp—held Sunday at the Busan International Film Festival’s Asian Contents & Film Market—Hong, a producer-director at Viscode and former Industrial Light & Magic veteran, outlined a hybrid future where AI augments—not replaces—traditional filmmaking.

Hong, whose career spans blockbusters including Iron Man, Transformers, and Pirates of the Caribbean, argued that AI is evolving from a tool for generating isolated images to an integrated part of end-to-end production workflows. He contrasted the conventional VFX pipeline—encompassing 3D asset creation, animation, rendering, and compositing—with an AI-assisted model where actors perform on controlled sets while AI generates environments, visual effects artists handle tracking and integration, and final touches ensure cinematic quality.

"We are moving from using AI to generate individual images toward using AI as part of a complete production workflow," he said, framing the shift as a collaborative rather than competitive dynamic between human creativity and machine assistance.

The discussion highlighted AI’s expanding role across VFX, animation, and filmmaking, including rotoscoping, cleanup, previsualization (previs), character design, camera tests, and environment creation. Hong emphasized that while AI accelerates production, traditional studios retain advantages in established IP, physical production infrastructure, A-list talent, and established distribution networks—factors critical for mainstream commercial success.

Meanwhile, AI-native studios, particularly smaller or agile operations, can leverage automation to develop lower-cost, high-turnover content, including original IP tailored to niche audiences or digital platforms.

Dreamkite Studios’ chief creative director Mark Wachholz, whose AI-generated films The Cinema That Never Was and Cérémonie have won top prizes at AI film festivals, echoed Hong’s perspective from a creative standpoint. Wachholz described AI co-creation as an abdication of absolute control, advocating instead for "exploring instead of controlling" and "finding instead of knowing"—a philosophical shift requiring filmmakers to adapt their approaches rather than force old methods onto new tools.

Director Ahn Jaehong of Climax Studio, who transitioned to AI filmmaking after injuries ended his conventional directing career, detailed a prompt-driven workflow spanning scene context, shot lists, storyboards, character/prop design, location scouting, and keyframe animation. His process underscored that while AI streamlines technical execution, human oversight remains essential in storytelling, visual design, and final artistic direction.

Hong concluded the debate with a stark reminder: "AI is just a tool; film is a sequence." The panel’s consensus pointed to a dual-track industry: AI-native studios thriving in original, experimental, or digital-first content, while legacy studios dominate franchise-driven, high-stakes productions. For Malaysia’s film and creative industries—where both local IP development and regional distribution challenges persist—Hong’s insights suggest an opportunity to leverage AI for cost-efficient production while preserving human-driven creativity in storytelling and VFX craftsmanship.

The next step lies in pilot projects where Malaysian studios experiment with AI integration, balancing innovation with the need for talent retention and market relevance in an increasingly fragmented global entertainment landscape.