After more than a year and a half of negotiations between the Screen Actors Guild-American Federation of Television and Radio Artists (“SAG-AFTRA”) and the major game studios, matters reached an impasse on 25 July, with video game voice actor and performer members of SAG-AFTRA voting to go on strike, action which will delay some of this year’s biggest titles and which could also bring the US games industry to a halt.

We have been here before: last year, the longest ever actors’ strike culminated in a successfully negotiated new Film/TV Agreement and the Writers’ Guild of America also ended lengthy strike action with new agreements put in place. In the games industry, matters have been rocky ever since 98% of SAG-AFTRA members voted to authorise strike action as long ago as September 2023 (should it be needed) and the SAG-AFTRA negotiators have decided that that time has come.

What are the sticking points?

Much like the WGA and SAG-AFTRA actors’ strikes, AI has been front and centre of the argument in relation to video games; in fact, it has been even more at the forefront of these negotiations, given the nature of the industry. Though SAG-AFTRA negotiators have acknowledged that progress has been made in other areas, like compensation and work safety, the studios appear to have so far taken a strong stance on the use of generative AI and the creation and use of digital replicas in productions.

SAG-AFTRA created an agreement which could be agreed between the union and independent developers so that the industry doesn’t go into complete shutdown. This agreement, known as the Tiered-Budget Independent Interactive Media Agreement (“T-B I-IMA”), replaces the previous Low Budget Agreement to specifically capture new work that wasn’t caught by the previous Interactive Media Agreement. The T-B I-IMA was produced following feedback from independent developers who wanted to use union performers but usually didn’t have the budget to do so. Signing up to the agreement allows for qualifying productions to continue, with terms and rates being adjusted in relation to the total production budget. The T-B I-IMA also requires developers to agree to various terms in relation to generative AI and digital replicas, which are seen in the other interim agreements which producers of non-qualifying projects can apply to sign up to.

What is SAG-AFTRA seeking when it comes to AI?

There should be no surprises to those who followed the actors’ strike that there are two areas for the union:

1) Digital Replicas

A digital replica is a digital version of either an off-camera performer’s (like a voiceover artist) or on-camera performer’s (including motion capture) performance that can be used to independently generate new material not previously recorded by the performer[1]. Digital replicas were already of concern to screen actors, especially background performers, and SAG-AFTRA were able to secure protections based around the informed consent of the performer prior to creation and/or use of the replica, in addition to further compensation if a digital replica was used. SAG-AFTRA have included very similar terms in the T-B I-IMA and the Interim Interactive Media Agreement. The performer must be informed at the time of audition or job offer (whichever is earlier) that a digital replica will be created. If the developer, producer or studio wishes to use the replica for anything other than the specific project it was created for, consent must be sought and, usually, further compensation given. The T-B I-IMA also contains provisions that a report is produced by developers whenever a project is released to the public which uses a digital replica to ensure the performer is fully aware of the way in which their digital replica has been used. 

2) Generative AI

Naturally, generative AI (artificial intelligence that learns patterns from data and produces content based on those patterns) (“GAI”) is at the heart of the dispute given its potential applications in the games industry. SAG-AFTRA differentiates it from what it calls “traditional AI” technology, which is “programmed to perform specific functions in game production such as character animation”[2]. 

It is notable that SAG-AFTRA have explicitly stated in the T-B I-IMA (and the Interim Interactive Media Agreement) that “The parties acknowledge the importance of human performance in Interactive Programs and the potential impact on employment under this Agreement when a GAI system is used to generate assets for use in Interactive Programs.” Providing this context for the provisions which follow shows SAG-AFTRA’s commitment to obtaining AI protections. The T-B I-IMA requires the relevant employing company to notify the union if they intend to use GAI and must seek each individual performer’s consent if they intend to create GAI-generated material using prompts in relation to that performer or a character uniquely associated with them. 

What happens next?

The short answer is: we have to wait and see. The actors’ strike continued for 118 days, the longest ever in the history of the union. Interactive media performers, and SAG-AFTRA, have made it clear that they will stand firm in its negotiations with studios with regard to AI protections. 

It’s not all doom and gloom though; the introduction of the T-B I-IMA and the Interim Interactive Media Agreement mean that the games industry has not completely ground to a halt, and developers who are willing to sign up to SAG-AFTRA’s terms can carry on their productions using voice actors who are SAG -AFTRA members. We expect to see the impact of any final agreements on AAA titles in the first instance. The strike comes at a testing time for the video games industry which has faced challenges over the past year and is looking to technologies such as AI to help with efficiencies and to increase player engagement.  We have already seen that a balance can be found between performers’ protections and studios’ needs in other industries and understand that before this strike the two sides were close to a deal and are hopeful that an agreement can be reached on this final sticking point. We now need to wait for the outcome of negotiations on this ever-changing area – watch this space.

[1]Contract Bulletin - A.I. for Interactive.pdf (sagaftra.org)

[2]Tiered Budget IMA Agreement -- Staff Review (sagaftra.org)