The entertainment industry is constantly evolving, and as technology advances, new challenges arise for actors and unions alike. One such challenge is the rise of synthetic actors, powered by artificial intelligence, that threaten to replace human performers in film and television. This issue has become so pressing that SAG-AFTRA is considering implementing a “Tilly tax” on studios that use synthetic actors, in order to protect the livelihoods of human performers.
The concept of a Tilly tax stems from the case of Tilly Norwood, a digital creation that sparked fears about AI taking over roles traditionally held by actors. While SAG-AFTRA was able to secure some protections for human performers during the 2023 actors strike, the threat of synthetic actors continues to loom large. The idea behind the Tilly tax is to require studios to pay a royalty into a union fund for using synthetic actors, as a way to compensate human performers for potential job losses.
Brendan Bradley, a member of SAG-AFTRA’s AI task force, acknowledges that the Tilly tax may not be a perfect solution, but it is currently seen as the best option available in 2026. The union is gearing up for negotiations with studios, with the hope of reaching a fair deal that addresses the challenges posed by AI and streaming platforms. While the threat of another strike is always present, both SAG-AFTRA and the Alliance of Motion Picture and Television Producers are optimistic about finding common ground.
In addition to the AI issue, residuals remain a major point of contention for actors. The transition to streaming platforms has changed the way actors are compensated for their work, with residuals from reruns no longer a viable source of income. The union is expected to push for improved terms regarding residuals, as well as addressing other concerns such as self-taped auditions and exclusivity provisions.
The entertainment industry is at a crossroads, with the rise of AI posing new challenges for actors and unions. The Tilly tax may be a controversial solution, but it highlights the need for proactive measures to protect the interests of human performers in an increasingly technology-driven world. As negotiations between SAG-AFTRA and studios commence, the future of the industry hangs in the balance, with both sides striving to find a balance between innovation and tradition.

