AI&#8217;s $1.8 Trillion Vision: Revolutionizing Storytelling and Entertainment at Web Summit Lisbon 2026
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<aside>(This article was generated with AI and it&#8217;s based on a AI-generated transcription of a real talk on stage. While we strive for accuracy, we encourage readers to verify important information.)</aside>
<img decoding="async" src="https://web-summit-engine.imgix.net/y1ypbo4ilt2s4jvwwnzuj0zp5zb5?auto=format&amp;fit=fill&amp;fill=solid&amp;fill-color=white&amp;w=600&amp;h=600&amp;fm=jpg&amp;dl=Sara Fischer.jpg" alt="Sara Fischer" align="left" hspace="10" width="200" style="float:left;margin-right: 15px">
At Web Summit Lisbon 2026, Ms. Sara Fischer of Axios moderated a discussion on generative AI&#8217;s impact on Hollywood and entertainment. She was joined by Mr. Mahi de Silva, Co-Founder &amp; Chief Strategy Officer of Higgsfield, and Ms. Stephanie Liu, CEO of Levitate Foundry.

Mr. de Silva introduced Higgsfield as a generative AI content platform democratizing content creation, offering tools for images, audio, and video. Ms. Liu explained how Levitate Foundry leverages these AI tools for efficient storytelling, enabling smaller companies to produce and test content at scale for performance marketing.

Generative media&#8217;s core impact lies in shaping narratives for diverse audiences, allowing for tailored content. This is crucial for the burgeoning microdrama industry, a $100 billion market driven by customized, vertical video. Higgsfield announced &#8220;Short For Studio,&#8221; a product transforming scripts into video, drastically cutting microdrama production costs from $400,000-$500,000 to about $10,000 per series.

Addressing AI-generated content authenticity, Mr. de Silva noted Higgsfield&#8217;s proprietary Soul image model renders hyper-photorealistic human skin and expressions, with 97% of users unable to detect AI generation. He likened their tools to &#8220;CGI 2.0.&#8221; On quality control, he asserted responsibility lies with regulatory bodies and brands for truth in advertising, not solely the technology provider.

Ms. Liu emphasized the heightened importance of creative discernment amidst content saturation. While AI lowers creation costs, strategic thinking is vital to stand out. Creative strategists are now more valuable, distinguishing effective storytelling from lower-quality output. She also mentioned US policies requiring watermarks on AI-generated ads.

Both speakers agreed AI would elevate creative professions, demanding strategic and philosophical thinking. Ms. Liu predicted a shift from programmable tasks like media buying to roles requiring human discernment. Mr. de Silva clarified Higgsfield&#8217;s B2B focus on user ideas over licensed content, anticipating major IP owners will eventually offer commercial licensing for AI use.

Current AI limitations include content generation time, though Mr. de Silva expects future GPUs to enable near real-time creation, unlocking interactive media and gaming. Ms. Liu added that AI-generated content sometimes lacks realism; her agency occasionally &#8220;breaks&#8221; products in images to enhance authenticity and make them appear less &#8220;clean.&#8221;

Finally, Ms. Fischer questioned if &#8220;The $100 million prompt&#8221; title undersold the market. Mr. de Silva projected a total addressable market of $1.8 trillion, encompassing advertising ($1.3 trillion), gaming ($300 billion), and entertainment ($250 billion). He concluded that capturing a portion of this vast market could easily yield hundreds of billions of dollars, underscoring AI&#8217;s immense growth potential.

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