The revolution of artificial intelligence in digital entertainment content is a once in a life time opportunity, said Cheng Lu, president and CEO of Chinese artificial intelligence technology company CreateAI, adding that AI will reshape the industry landscape of video games and anime.

"In Hollywood and Japan, top-tier studios are drowning from rising production costs, labor shortage and long development cycles," Lu said, highlighting that generative AI isn't here to replace artists—it's here to empower them.

CreateAI has launched an AI video generation tool for anime, comics and gaming called Animon.ai, which has gained popularity in Japan.

Lu said anime production is a 14-step marathon — scriptwriting, storyboarding, keyframes, coloring — all by hand. "With our technology, we can generate layouts, design characters, and generate key frame and in between frames with a click of a button. Directors gain time to experiment, innovate, and make the stories really come to life."

For games, AI transforms all steps in the production process, while video models vastly accelerate environment and character design, Lu said. He is confident that the company can cut current game development costs by more than 50 percent within five years with its technology and tools.

Lu stated that the company is developing the underlying AI technology and infrastructure, which includes its proprietary video generation large models Ruyi, as well as fine-tuning other industry leading models.

"We will leverage our proprietary AI simulation systems for video game development. Building on top of the foundational technologies are customized software tools that assist human creators in the development of various anime and gaming content," he said.

This year, the company will launch a series of AI generation tools and user generated content platform for anime fans and creators around the world.

In addition, he mentioned that CreateAI has a two-pillar revenue model. The first is self-developed content leveraging major IPs to develop blockbuster digital entertainment content, while the second is operating AI tools and user generated content platform to allow fans to become professional creators, building a more vibrant community.