SXSW 2026

Austin Texas – It’s been three days and if there has been one common thread in dozens of conversations it’s been, “What the #*@k happened to SXSW this year?!”

Having helped launch a division of a massive industry event, I can empathize on the challenges. Running live events at this kind of scale is not for the faint of heart. I’m sure management has heard an earful so I’ll skip piling on. (If you’re just catching up, here’s one summary.) Let’s hope the shoes of former festival president Hugh Forrest are adequately filled sooner than later.  A 41st anniversary would be welcomed. Moving on….

I’m attending with @drmachakil, a director / writer / creative director at the forefront of storytelling using AI—for both branded and independent films. We’ve attended just about every AI panel we could find; seminars by “AI production companies” to Paige Bailey, a Lead Project Manager on Google’s Deep Mind AI. Here are the three big takeaways:

1.If you feel left behind, don’t worry, so does everyone else.

If you think at least the experts have it figured out, they do not. Even Paige at Google said colleagues who are not in constant interaction with Google’s many AI tools are shocked at just how fast these tools are evolving. The tldr; is…You just need to jump in and see it as a marathon, not a sprint.

Everyone who is sprinting to be at the forefront of multiple tools is exhausted. So don’t. Yes, some of us will need to run a faster pace than others—if event to figure out what these tools can’t do—but not everyone. The important part is not putting off diving in out of fear. Staying consistent is key. Yes, it will require work. Fortunately, the tools are only getting more user friendly and more effective.

2. These tools enable talent—they don’t create it.

One of the most surprising aspects so far has been the lack of a “Toy Story” moment. When Pixar broke through with a compelling story told with groundbreaking 3D animation, it changed the film world forever.  I’m not putting all the pressure on SXSW to deliver this. That said, it’s absence only magnifies its importance: AI needs that transformative pivot.

To be clear, what’s NOT missing is the tech. It’s the compelling story enabled by these AI tools. We are still seeing “dragons and angles”—nice eye candy, and impressive tech demos, but no stories that resonate.

It may be a consequence of so much focus on the output, instead of the most important aspect, the input. Scripts, basic dramatic structure, storyboarding, etc all still matter. Can you have AI do all of it? No. We are a long ways off from a single prompt that will generate a compelling feature film or even a :30 second spot. Assuming we had a magic AI box, more artists than ever could still use these tools concurrently to tell stories that are personal, meaningful and poignant.

As Ms. Bailey said, “So many dreams are now attainable.” What is really remarkable is not that AI can create a scene that would have previously cost Hollywood millions to make, it’s that anyone on the planet who has an internet connection can tell any story using moving images. There are now few barriers to entry.

That also means there is nowhere for the average to hide.  There will be a higher bar for directors, artists, writers, etc as AI begins to reveal the talents of more directors, artists, etc. because of the accessibility. Think of AI as the American Idol of filmed storytelling. It also means core storytelling talent—and not who can best survive a 14 hour shoot day or code the next tool—becomes all the more valuable.

3. Ad Agencies, especially, are not connecting the AI dots.

For many agencies, the rush into production—AI or otherwise—seems like another way to capture revenue. While this lateral move seems like a great profit center, many agencies are losing focus on how they really make their money.

Consider this: What has traditionally been a mark-up driven business will change as AI craters the cost of production.  Plus, as discussed, the talent to tell stories using motion pictures—now greatly enabled by AI tools—is still dependent on human talent. The net: A business that requires more specialized talent and generates less profit does not seem like the answer.

What AI can do, by greatly foreshortening the production process, is put your most valuable money makers—your creatives—to work generating more billable materials. With AI, your creatives are no longer stuck on a :30 second commercial for 4 month, looking at reels, reading director treatments, briefing production companies, prepping for production, sitting on a set, then editing, finishing and delivering ONE spot. Because let’s face it, production—whether you outsource or do it in-house—has or never will be a major profit center. Just ask your accounting department what you’re making (or losing) on it now.

HOWEVER, if you can shorten that entire content creation process down to 3-4 weeks (at most,) you have the opportunity to generate (and sell) many more creative ideas. Better still, your clients will have content that can be more personalized, more reflective of pop-culture, and cover more of their products, services and/or brands—instead of playing favorites. There’s only so much bandwidth and if your teams are spread thin, you won’t be capitalizing on that “Dunk Your Oreo in the Dark” moment.

It’s definitely been a bittersweet experience so far. The people here have been fantastic and a lot of great discussions have been had. Yet, no one—from agencies, studios*, and even the AI companies themselves—has been able to answer, “How do you convey the many positives of this tech while not activating people’s fears ‘the robots are taking over’?” We have our toolbox and were really hoping to expand it. The tech is liberating but the focus so far, seems to be widely misplaced. If you have insights on how you’ve successfully presented AI to your clients and partners, we’re happy to trade notes. It’s worth it.

Update (03/16/2026) Amazon has it right! more to come…