In Thailand last April, Nation TV introduced its first AI news anchor, Natcha, who delivered the evening headlines with lifelike expressions and a natural voice. Her debut marked a glimpse into the rapidly growing field of synthetic media, a trend expected to accelerate this year, as reported by The National.

AI is making waves in the media and entertainment industries, with Grand View Research projecting the market to grow at an annual rate of 24.2% between 2025 and 2030. The industry was valued at $15 billion in 2022 and rose to $25.98 billion last year. This growth is being driven by the need for cost-effective solutions as businesses turn to AI to manage rising operational costs.

In the film industry, synthetic actors are cutting production expenses. At the Reply AI Film Festival, held alongside the 81st Venice International Film Festival last September, experts highlighted how AI-driven visual effects (VFX) solutions are expected to save over $1 billion annually. McKinsey research also shows that AI has reduced post-production timelines by 30%, benefiting big-budget action and sci-fi films.

Similarly, the advertising industry is embracing synthetic media. Coca-Cola recently recreated its iconic 1995 Christmas ad using AI, avoiding costs tied to actors, sets, and shoots. Insiders estimate AI campaigns save up to 70% on production costs. Virtual influencers like Lil Miquela, who commands hundreds of thousands of dollars for brand deals, are also reshaping marketing strategies. Brands such as Prada and Louis Vuitton have collaborated with AI-driven personas to reach broader audiences.

AI news anchors are another area of innovation. From Thailand’s Natcha to Kuwait’s virtual presenter Fedha, these AI broadcasters are reducing costs by eliminating expenses related to salaries, training, and logistics. Fedha, for example, can switch between languages like English, Arabic, and Mandarin, offering continuous updates. Allied Market Research estimates that AI has lowered animation costs by 25%.

However, the rise of synthetic media brings challenges. Experts stress the need for regulations to ensure accuracy, combat bias, and address ethical concerns like deepfakes. Tim Gordon, co-founder of Best Practice AI, told The National that 2025 will be pivotal for AI regulation, with the EU AI Act leading the way by promoting transparency and education.

The gaming industry is also leveraging AI to create more immersive experiences. Ubisoft’s Assassin’s Creed: Mirage used AI to generate non-playable characters with adaptive responses, enhancing player engagement. Omar Ghanem, CEO of Abu Dhabi’s GAM3S.GG, told The National that AI enables real-time, player-driven narratives, revolutionising gaming dynamics.

Despite its advantages, synthetic media faces criticism. Hollywood actors like Scott Hamm-Duenas have raised concerns about AI replacing human talent without proper consent or compensation. Recently, Coca-Cola’s AI-driven ad faced backlash from creatives. Clear regulations, ethical AI practices, and human oversight are seen as crucial to addressing these concerns.

Looking ahead, experts predict that multimodal AI, which combines text, audio, and visuals, will unlock new possibilities. Prateek Dixit of Pocket FM foresees AI transforming industries like live entertainment and customer service, while warning of risks like bias and misinformation. As synthetic media becomes essential across sectors, meticulous planning and rigorous oversight will shape its future.