The news: SAG-AFTRA proposed a new fee on the use of “synthetic” AI performers. The policy would apply to both digital replicas of real actors and fully AI-generated characters with no human counterpart, per Bloomberg.

• Dubbed the “Tilly tax” for controversial AI actress Tilly Norwood, the proposed fee could make using synthetic talent cost as much as hiring human actors.
• The fee could involve studios paying a royalty into a union fund, per Variety.

AI has become a central point in the union’s contract negotiations with major Hollywood studios, with the current agreement set to expire in June.

Zooming out: Data and employee feedback are mixed on how much AI actually boosts productivity or reduces costs. However, in film and studio production, it directly threatens to replace union work, making it a uniquely contentious use case that raises immediate labor and compensation concerns.

The potential “Tilly tax” suggests that AI cost advantages may not last, while raising questions around who gets paid when AI is used. If something like a fee on synthetic performers takes hold, the assumption that AI talent is cheaper may start to break down.

Why it matters: If studios must pay additional fees for digital replicas, brands may face similar scrutiny around training data, likeness rights, and residual-style payments for reuse. That adds legal and operational friction to what currently feels like a fast, cheap content pipeline.

Using synthetic actors or digital replicas can also erode user trust: Despite consumers’ rising adoption of AI tools, 48% of US film and TV viewers are uncomfortable with entirely synthetic actors in movies or TV shows, per Luminate, and only 22% are comfortable.

Implications for the industry: Hollywood is an organized front, and if unions succeed in setting pricing floors or usage rules, other creative industries—such as influencers, voice actors, and designers—may follow, raising the baseline cost of AI-powered content.

If guardrails like this spread, marketers will need to rethink assumptions about savings and plan for a more regulated, rights-heavy AI content ecosystem.

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