What Lionsgate's CAIO Appointment Means for Filmmaking

Lionsgate is making a decisive move into AI with the appointment of Kathleen Grace as its first Chief AI Officer (CAIO).

Reporting to CEO Jon Feltheimer and joining the senior leadership team, Grace will drive AI adoption across the studio’s end-to-end pipeline, from production through marketing, distribution and release.

The company says her remit is to serve the creative visions of filmmakers, unlock new efficiencies in production, marketing, distribution and back-office operations, and lead initiatives to protect the intellectual property of the studio and its talent partners.

AI in entertainment

Kathleen brings a blend of tech and creative leadership to this role.

She most recently served as Chief Strategy Officer at Vermillio, a Gen AI platform for creatives, and previously was CEO of New Form, a digital studio that developed more than 40 pilots and sold nearly 25 series to platforms including Netflix, HBO Max, The CW and Freeform.

Announcing the move on LinkedIn, she wrote: “Working with Vermillio has been incredibly rewarding. I’m excited about this next chapter, where I’ll continue working at the intersection of AI and entertainment, now from the studio perspective.”

Enhancing or replacing creativity?

Her appointment comes as Hollywood grapples with the role of AI in the creative process. Some see AI as a force multiplier; others warn it could undermine trust and jobs in all areas of the film industry.

Only last autumn, the first AI actress, Tilly Norwood, was created by Xicoia, a London-based talent studio, with actors and protestors banding together against the development.

Around the same time, Channel 4's AI presenter for its Dispatches documentary received mixed reviews.

Now, it seems that the integration of AI in creative industries is unavoidable.

Jorge Lopes, Co-Founder of Lopes Brothers Production, says: “This is where the real tension shows up. ‘AI for efficiency’ and ‘AI for creative trust’ don’t naturally align.” 

Aaron Collins, Founder at APC Consulting, directly spoke to Lionsgate's new CAIO: “AI is a two-sided sword; it can be used to kill creatives’ careers or to protect and help them. You are now positioned to use it the right way.”

"Appropriate guardrails" on AI

Jon has publicly emphasised governance, telling analysts on a recent earnings call that Lionsgate would only adopt AI if “appropriate guardrails are established,” and highlighting the need for “safeguards”.

Announcing Kathleen's appointment, he said her “AI expertise and digital media savvy will help us grow alongside our talent partners as we create new opportunities, establish new safeguards and execute new strategies”, adding that she understands the ecosystem “from the perspective of creators and IP holders alike”.

A creative leader in AI adoption

Lionsgate’s creation of the CAIO role follows on from some of the studio's previous experiments with AI.

In 2024, the studio partnered with Runway to use its Gen AI as an assistive creative tool to help produce cinematic video and reduce costs, a move that sparked backlash from writers, producers and filmmakers.

Despite the criticism, the company has continued to expand AI pilots across the business. “We continue to find exciting new use cases as we apply AI to more areas of our business, increasing our productivity, generating cost savings and expanding our creative tool kit,” says Jon.

AI innovation

Industry observers argue that dedicated leadership is now essential.

“Early AI momentum has rightly come from existing technology teams, but as adoption deepens, dedicated strategic leadership and governance become essential,” explains Rob King, Director of Business Relationship Management at Sony Pictures.

“In a sector where AI can drive huge value, clarity of ownership is no longer a luxury.”

With Kathleen in post, Lionsgate is signalling that AI will be embedded responsibly into both its creative workflows and its operating model, with an explicit mandate to balance innovation, efficiency and IP protection.