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SAG-AFTRA's new contract requires studios to prove "significant additional value" before using AI synthetic performers, avoiding a proposed tax.
SAG-AFTRA has presented a tentative agreement to members that establishes new protections against artificial intelligence, specifically addressing the use of digital replicas and synthetic performers in Hollywood productions [1]. The contract, which is currently being voted on by members, replaces a proposed financial penalty on synthetic actors with a system requiring producers to prove the technology provides "significant additional value" before use [1][2].
Key takeaways
The agreement emerged after studios rejected a union proposal that would have required productions using synthetic performers to pay the equivalent of a SAG-AFTRA member's salary into a compensation fund [1]. Two studio sources told TheWrap that this concept, colloquially referred to as the "Tilly Tax," was a nonstarter for the Alliance of Motion Picture and Television Producers (AMPTP) because the use of synthetic performers remains largely hypothetical [1]. Instead, the parties agreed to a framework where the AMPTP commits to "overwhelmingly" using union performers and prohibits the use of a synthetic for a role a union performer could fill unless the synthetic brings "significant additional value" [1].
Crucially, the contract does not define "significant additional value," leaving the term open to interpretation and potential arbitration [1]. Under the new rules, producers must notify and bargain with the union to demonstrate this value, a process that SAG-AFTRA National Executive Director Duncan Crabtree-Ireland estimates would take roughly one month [1]. If an agreement cannot be reached, the union may arbitrate for damages that are not necessarily limited to the compensation a natural performer would have received [1].
The contract draws a sharp distinction between digital replicas and synthetic performers. Digital replicas, which use AI to replicate an actual living or deceased performer, require informed consent and fair compensation [2]. In contrast, synthetics—characters not based on any real person—are permitted under "unusual circumstances" provided the significant value test is met [2].
Crabtree-Ireland noted that the union would challenge justifications based on actor safety by asking why a digital replica of a union member could not be used instead, ensuring a performer is compensated and consent is obtained [1]. This distinction is intended to narrow the use of synthetics, as the capabilities of replicas and synthetics are described as having "very little distinction" [1].
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The ratification of this contract is viewed as a mechanism to prevent a repeat of the 118-day strike in 2023, which cost studios billions of dollars and brought production to a halt [2]. While the agreement does not ban AI, union leaders believe the negotiation and arbitration requirements will serve as a strong disincentive against replacing human actors purely to cut costs [1][2]. The deal also establishes a foundation for future discussions as AI technology continues to evolve, allowing the union and studios to address specific use cases in real-time [1].
AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jun 1, 2026 · How we report
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