Walt Disney Co. (DIS) has created a new artificial intelligence (AI) business unit to manage how the entertainment company develops and deploys new technologies, according to Reuters.
The recently formed “Office of Technology Enablement (OTE)” will focus on the development and responsible use of emerging technologies such as AI and mixed reality. The new unit is being led by Jamie Voris, who has served as chief technology officer (CTO) at Disney for the past 14 years.
In an internal memo to staff that has been leaked to the media, Disney said that the Office of Technology Enablement aims to ensure that Disney remains a leader in formulating industry best practices for the use of AI and other technologies across the entire company, including the ESPN television network and Disney’s theme parks.
Rising Issues Concerning AI
The rapid growth of AI has raised a number of issues and concerns in the entertainment industry, particularly around job security and intellectual property. Last year, the growing use of AI to both write text and produce images was cited as a concern by Hollywood actors and writers who went on a months-long strike.
Several writers and news organizations, including The New York Times Company (NYT), have filed lawsuits against OpenAI and other firms for using their copyrighted work and intellectual property to train AI models without permission.
Actor Robert Downey Jr., who has appeared in several Disney superhero movies as the character Iron Man, recently threatened to sue if his likeness is ever reproduced using AI. DIS stock has risen 7% so far in 2024.
Is DIS Stock a Buy?
Walt Disney stock has a consensus Strong Buy rating among 20 Wall Street analysts. That rating is based on 15 Buy and five hold recommendations made in the last three months. There are no Sell ratings on the stock. The average DIS price target of $112.47 implies 17.39% upside from current levels.
