[CES 2026]The AI Paradox: The Barrier to Create Has Lowered, But the Bar for Success Has Risen

Digital Hollywood Panel Reveals the Entertainment tech Era: Opportunities and Challenges for K-Content

January 5, 2026 | Aria Resort & Casino, Las Vegas

▲ The CES 2026 Digital Hollywood session. Seven leaders from Google, Microsoft, Secret Level, and other key industry players discuss the future of entertainment in the AI era.

We've entered an era where anyone can make a movie with AI. Yet the expressions on the faces of industry frontrunners weren't entirely bright. At CES 2026, they asked in unison: "So what should we be making?" This question isn't just for Hollywood. It's equally posed to those of us contemplating the next decade of K-Content.

January 5th, Las Vegas. Digital Hollywood, which has partnered with CES for 25 years, once again gathered the giants of entertainment technology.

'AI, Cinematic Creativity, Spatial and XR: The Next Level of Innovation.' Despite the grand title, the 90-minute conversation was remarkably candid. They discussed the shadows cast by AI as much as its possibilities. And at the heart of that conversation was 'EnterTech'—the convergence of entertainment and technology.

A Stage That Has Witnessed 25 Years of Hollywood-Tech Convergence

Digital Hollywood is CES's official partner program, a living witness that has documented how technology has transformed entertainment over a quarter century. When VR first emerged, when streaming threatened theaters—debates unfolded on this very stage. This year's topic was, naturally, generative AI.

Moderator Charlie Fink has a unique background. A former Creative Vice President at Walt Disney who helped develop 'The Lion King,' he now writes about AI and XR as a technology columnist for Forbes. His dual identity as both creator and technology evangelist made the discussion particularly sharp.

The panel was equally impressive. Aaron Luber, who leads Gemini and AR/VR business at Google Labs; Ted Schilowitz, a futurist who worked at Paramount and 20th Century Fox; Momo Wang, creator of 'Tuzki'—Asia's first globally successful character IP; Julina Tatlock, a VR storytelling pioneer alongside director Doug Liman; Leila Amirsadeghi, who handles spatial computing at Microsoft; and Christina Lee Storm of Secret Level, known for their Coca-Cola AI advertisement. These individuals standing at the intersection of technology and creativity had gathered.

The session opened with a video produced by Secret Level. It was a promotional piece for their educational program, 'Secret Level Academy,' but what stood out was that the entire video was created with generative AI. Characters indistinguishable from real people appeared, and the camera smoothly panned through spaces. Quality that would have been impossible just a year ago. Christina said matter-of-factly, "We wanted to show you what we can do right now."

The 'Vanilla Effect': Why All AI Content Looks the Same

Ted Schilowitz's comment shifted the mood. "I'm worried about AI's 'Vanilla Effect.'"

The Vanilla Effect refers to the homogenization of AI-generated content. Generative AI is designed to output the 'average' of its training data. The most universal, the most inoffensive, the most widely acceptable result. The problem is that 'inoffensive' is synonymous with 'lacking personality.' Like vanilla ice cream—acceptable to everyone but memorable to no one.

Ted's observation was specific. Looking at content being created with AI now, it's technically impressive but emotionally flat. Everything has similar tones, similar color palettes, similar compositions. We're still in an 'era of spectacle' where people marvel at the technology itself, but no work has yet emerged that truly moves hearts.

Julina Tatlock took it a step further. "Regular people can no longer tell whether a video was made by AI or humans. Soon, neither will we." Paradoxically, once technical distinction disappears, what matters isn't technology. "Then only one thing remains. Story. Whether you empathize with the characters, whether the story resonates with you. That's everything." The unique emotions and narrative structures that are considered K-Content's strengths could be the antidote to this 'Vanilla Effect.'

Beijing's 200-Person AI Studio vs. America's 20-Person Studio

Momo Wang's account of the situation in China put the entire panel on edge. She recently visited an AI video studio in Beijing. Over 200 AI filmmakers were working there in an organized fashion. It operated like a smart city production factory. One team handled only prompts and scripts; another handled only video generation. A systematized mass production system for AI content was already in operation.

"And that's just the beginning. They plan to hire 100 more this year. There are countless studios like this in China."

In the US, a 20-person AI studio is classified as 'large.' Korea's situation is even more challenging. While the world scrambles to upgrade tools and workflows following Sora 2's release, China has already entered the industrialization phase. Can K-Content overcome the technology gap with storytelling alone? Without EnterTech capabilities, it's becoming increasingly difficult.

The Raised Bar: Anyone Can Create, But Not Everyone Can Succeed

The most striking statement came from Momo Wang's conclusion. Having created Tuzki—Asia's first global IP—and directed animation for Illumination's Minions series, her diagnosis was clear:

"People say AI has democratized creation. They're wrong. AI has lowered the barrier to entry for creation, but it has raised the bar for 'standing out' much, much higher."

This statement deserves careful consideration. Thanks to AI tools, anyone can now make videos. No professional equipment, no large staff, no massive budget needed. A few prompt lines produce decent-looking footage. The problem is that 'decent-looking' footage is everywhere. Everyone produces similar quality results with similar tools. To stand out? You need to create something far more original and far more polished than before.

Ted Schilowitz illustrated the change in content production costs with numbers. First, it was '10x the content at 1/10th the budget.' A month ago, he revised it to '100x at 1/100th.' Now, he believes we're approaching '1000x at 1/1000th.' Content supply is exploding while demand isn't growing proportionally. To be chosen amid this oversupply, you need to be incomparably better than before. This is the reality of 'the raised bar.'

The Disappearing Middle Ground: K-Content's Choice

Momo Wang predicted the market structure this change would bring. The future content market will have only two types: ultra-high-quality premium content with the best ideas and craftsmanship, and ultra-cheap disposable content mass-produced at scale. The middle disappears.

K-Content has been strong precisely in that 'middle.' Without Hollywood blockbuster budgets, it captured global markets with solid storytelling and production capabilities. Parasite, Squid Game, BTS. But if that middle ground disappears? The choice becomes binary: move up to premium or get caught in ultra-low-cost competition. To win in premium competition, you ultimately need to freely command cutting-edge EnterTech while possessing originality that AI cannot replicate. This is why EnterTech has become not an option but a necessity for K-Content.

People Spending $100 a Month on 5-Minute Dramas

Charlie Fink's micro-drama story drew both laughter and sighs. "Let me be honest. Micro-dramas are terrible. Really bad. But people love them like crazy."

A venture capitalist he knows spends over $100 a month on micro-dramas. The reason is interesting. He watches two episodes in the back of an Uber heading to lunch. When five minutes open up between meetings, he watches another. Because they end on cliffhangers, he's curious about the next episode and finds himself hitting the payment button. No artistic merit, but it fits his lifestyle. That's all there is to it.

Ted Schilowitz interpreted this in historical context. "60 years ago, people said the exact same thing about soap operas. Low-brow, not art. But people loved them." Aaron Luber added data. According to The Guardian, 20% of new content being viewed on YouTube is AI-generated. 60 billion views, hundreds of millions in revenue. Like it or not, this has already become an industry. The traditional drama format where K-Content has shown strength is being challenged.

Gen Z's New Friends: AI Characters

Another statistic Charlie Fink shared was even more shocking. More than half of the population under 16 has an 'AI friend.' Through services like Character AI, young people are conversing with AI characters, forming relationships, spending time. Where did that time come from? Time that would have been spent on movies, dramas, and games. AI characters have become competitors to the entertainment industry. The very concept of 'consuming' content is changing. Responding to new consumption patterns requires new technical capabilities—EnterTech.

Spatial Computing: From Niche to Standard

Microsoft's Leila Amirsadeghi conveyed a different kind of change. Spatial computing is no longer 'future technology.' Design principles used in immersive storytelling are now being applied directly to digital twins, manufacturing floors, and retail store design. Technology that started in entertainment is becoming the basic interface across industries.

Aaron Luber was optimistic about the AI glasses market. Meta's Ray-Ban smart glasses are exceeding expectations, and Google is expanding its product line through partnerships with Warby Parker and Gentle Monster. A headset collaboration with Samsung is also underway. He emphasized that the real tipping point isn't hardware but LLM multimodal capabilities—the ability to process camera and microphone inputs simultaneously while conversing in real-time. However, Leila remained cautious. "Without resolving trust issues around always-recording devices and data authenticity verification, mass adoption won't be easy." Just as smartphones became the primary platform for content consumption, AI glasses could be the next platform. Is K-Content prepared to create content optimized for this new platform?

Amazon's 1 Million Robots, 1 Million Humans

Another number Ted Schilowitz shared cast a heavy mood over the stage. It was from Amazon's announcement last year. The number of robots working at Amazon has nearly equaled the number of human employees. Roughly 1 million to 1 million. "I don't need to tell you which side will grow and which will shrink after 2025." His tone was calm, but the implications were weighty. "This isn't coming. It has already arrived and left the station. The train is moving. When we humans only need to work one day a week, we need to think about what we'll do with the rest of our time." The wave of automation combining AI and robotics is washing over content production floors too. This wasn't just an entertainment industry problem.

Hollywood's Anxiety and Education as the Solution

Charlie Fink shared a personal story. His wife is a retired set and costume designer. She doesn't like that her husband teaches cinematic AI. "If you don't do it, someone else will. I know that. But I still hate thinking about what's going to happen to my profession." It was a scene that encapsulated the industry's ambivalence toward technological change.

Christina Lee Storm proposed education as the solution. This is why they created Secret Level Academy. "On the adoption curve, there are early adopters and there are laggards. I don't want to see my colleagues—professionals with decades of experience—fall behind. I want to help them use these tools ethically and effectively."

Julina Tatlock believes the role of human creators won't disappear. She used costume design as an example. How a costume feels on an actor, how that texture changes their movement, how the rustle of fabric creates a scene's atmosphere.

All of this is part of acting, part of storytelling. Current AI flattens all these details. That's precisely why humans are needed. Korea faces the same challenge. The many professionals who built K-Content's competitiveness must adapt to the new technological environment. Training personnel with Entertainment tech capabilities is urgent.

The Myth of 'Democratization'

Near the session's end, Charlie Fink asked directly. "People say a young person in Lagos who never went to film school will make the next Star Wars. I don't think so. Making Star Wars is really hard and requires very specific skills. Having access to a computer and Runway doesn't mean you can make Star Wars."

The essence of Hollywood, as he sees it, is 'the aggregation of the world's best talent.' When director Doug Liman makes a film, he doesn't work alone. Starting from his ideas, he gathers artists who will expand and enrich his vision.

No matter what technology you have access to, it's a world one person cannot create alone. Julina Tatlock added, "In Edge of Tomorrow, Tom Cruise does his own stunts. Doug wants actors to feel danger. That fear shows up on screen.

No matter how advanced AI gets, it can't replicate that human trembling." The same applies to K-Content. Individual creator talent isn't enough. An ecosystem connecting technology and creation, planning and production, domestic and international is needed. EnterTech is the core infrastructure of that ecosystem.

Remaining Questions and K-Content's Next Decade

The 90-minute session ended. But the questions didn't.

China has already industrialized AI content production. Can the US, can Korea, catch up to that scale and speed? When will AI content emerge that truly moves hearts, breaking through the Vanilla Effect?

How can we draw young generations—whose time is being taken by micro-dramas and AI characters—back to traditional narratives? How should creators embrace new tools amid fears of job loss?

K-Content's last decade was a time of astonishing the world with the power of storytelling. But the next decade won't be enough with story alone.

Concrete strategies are needed for how to train personnel who can handle AI tools, how to attract large-scale investment, how to differentiate amid the flood of ultra-low-cost content from China, and how to respond to new platforms.

K-Content needs Entertainment tech not simply for efficiency. It's to meet the raised bar. To break through the Vanilla Effect and create differentiated content, to compete in premium markets in response to the disappearing middle ground, and to amplify K-Content's strengths—its unique narratives and sensibilities—with the power of technology.

Momo Wang's words echo again: "AI has lowered the barrier to entry for creation, but it has raised the bar for standing out much, much higher."

Ted Schilowitz's words linger: "This isn't coming. It has already arrived." In a world where the barrier to create has lowered, the real competition has just begun.

In an era when anyone can create, what will we make? Can we create K-Content that clears the raised bar? Without EnterTech capabilities, it's impossible. Those who find that answer will lead the future of K-Content.

■ Panelists

※ This article is based on the CES 2026 Digital Hollywood session 'AI, Cinematic Creativity, Spatial and XR: The Next Level of Innovation' (January 5, 2026).