Will AI-generated anime reshape storytelling—or replace it?

After artificial intelligence made waves in content creation across Instagram Reels, YouTube Shorts, and digital advertising (such as Puma’s recent AI-powered campaign), the technology is now stepping into the world of animation. Traditionally a craft requiring meticulous storytelling, careful planning, frame-by-frame adjustments, and long rendering times, animation is now being streamlined by AI—dramatically reducing production time and costs.

Vidu AI, a generative video platform developed by Chinese AI firm ShengShu Technology, recently announced a partnership with Los Angeles-based animation studio Aura Productions to produce a fully AI-generated sci-fi anime series. This ambitious project will be released as a 50-episode short-form series on major social media platforms in 2025. The first trailer is expected to debut globally in the coming days. In an industry where traditional animation can take months—or even years—to complete, this development could be transformative.

“AI is not a constraint on creativity but an enabler of new creative possibilities,” Evan Liao, head of Vidu at ShengShu, tells Fast Company. “Rather than homogenizing storytelling, we believe AI empowers creators to experiment with unique narratives and push the boundaries of imagination.”

Liao explained that the decision to launch the series on social media rather than traditional networks reflects shifting consumption habits. Unlike conventional TV, which adheres to rigid programming schedules, social media offers on-demand access and global reach. “Social media has already transformed the way audiences engage with content, and AI-generated anime is a perfect fit for this shift,” he says.

Founded by actress and producer Luo Yan, Aura Productions has a portfolio spanning animation, comics, and short dramas, with a strong emphasis on using AI to streamline workflows and enhance creativity. Luo, known for her role in the 2001 film Pavilion of Women—which she also produced and co-wrote—has built a long-standing career in film. She later appeared in Marco Polo (2007), directed by Kevin Connor. The studio’s creative director, D.T. Carpenter, is a showrunner and director with a proven track record of integrating AI into media. He has helped develop AI-driven ads and campaigns for major brands such as AWS, Mastercard, MrBeast, KPMG, and SharkNinja.

At the heart of the collaboration is ShengShu’s advanced AI video model, Vidu 2.0. It uses Multiple-Entity Consistency to integrate characters, objects, and environments into cohesive, ">high-quality animations. Capable of generating videos in under 10 seconds, Vidu has already made its Hollywood debut—creating a Chinese trailer for Venom: The Last Dance in 2024 and demonstrating its potential to scale promotional content creation.

ShengShu has positioned Vidu as a direct competitor to OpenAI’s Sora. On January 5, 2025, OpenAI disclosed rising operational costs and the potential for price increases on tools like Sora. In contrast, ShengShu touts Vidu 2.0’s real-time video creation at a fraction of the cost—$0.0375 per second. Additionally, its One-Click Templates allow users to generate detailed character actions and dynamic scenes without crafting complex text prompts.

“We pioneered the world’s first U-ViT architecture, exploring the fusion of Diffusion Models and Transformer structures to support a wide range of multimodal generation tasks. This breakthrough enables AI to generate high-quality content more efficiently while maintaining consistency in complex scenes,” explained Liao. “With Vidu, a single creator can accomplish what once required an entire team, making production more efficient and accessible.”

Will AI Replace Animation Jobs in the U.S.?

While some celebrate AI-powered animation as a leap forward, others express concern over its impact on traditional artists and animators. A 2024 report by CVL Economics and The Animation Guild projected that generative AI could affect 21.4% of jobs in film, television, and animation by 2026—roughly 118,500 positions that may be consolidated, replaced, or eliminated. California, home to the largest concentration of industry professionals, is expected to bear the brunt, with New York also at risk over the next three years.

Hand-drawn and CGI animation require years of artistic expertise, and while AI-generated visuals are impressive, they may lack the emotional nuance and expressive depth that human artists provide. Audiences often resonate with storytelling that reflects authentic human experience. While AI can deliver striking imagery, can it truly capture the heart and soul of anime? Liao believes it can—with the right storytellers behind it. He added that beyond visuals, AI can also aid in scriptwriting and narrative development.

“We aim to provide a flexible creative space where storytellers from diverse backgrounds can more easily bring their visions to life without industry gatekeeping. Our AI model is not designed to replace traditional animation production but to expand possibilities for creators,” he emphasized.

If the AI-generated anime series from Vidu and Aura Productions proves successful, it could reshape the entertainment industry—setting new benchmarks for rapid content production, AI-assisted storytelling, and cost-effective workflows. Whether this signals the dawn of a new creative era or a passing tech trend will depend on audience reception, industry adoption, and the lasting appeal of AI-generated content.

“Many animation studios and independent artists are already using our AI as a creative tool to improve visual quality and accelerate production, rather than relying solely on AI-generated content,” Liao tells Fast Company. “By combining AI with human creativity, the anime industry can embrace more diverse forms of storytelling.”

https://www.fastcompany.com/91305544/will-ai-generated-anime-reshape-storytelling-or-replace-it?partner=rss&utm_source=rss&utm_medium=feed&utm_campaign=rss+fastcompany&utm_content=rss