IMAX CEO: AI is for efficiency, not to transform film production
IMAX CEO: AI is for efficiency, not to transform film production
Francisco VelasquezThu, March 5, 2026 at 6:43 PM UTC
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Film buffs should not expect an AI-generated blockbuster to hit the screen anytime soon.
"We're not leading a revolution to transform production," IMAX (IMAX) CEO Richard Gelfond told Yahoo Finance's Opening Bid.
While the tech world obsesses over AI, Gelfond views the nascent technology through a more practical and decidedly unglamorous lens.
"The one place we are developing it is where most other people are doing it, which is just back office, like accounting, marketing, [and] distributing," he said.
Gelfond's skepticism toward a creative overhaul is a cold shower for AI evangelists, but a relief for purists. He notes that while AI can now "retrieve and develop" digital sunsets more efficiently than traditional special effect houses, the "big controversy" remains the human element.
For IMAX, AI is a cost-saving tool for the B-side of the business, not a replacement for the director's chair.
This pragmatic approach comes as IMAX navigates a complex recovery in the global film industry. While the broader S&P 500 (^GSPC) has surged 16% over the past year, IMAX stock has soared roughly 65% over the same period.
This standout performance comes despite an industry often tethered to the whims of the seasonal box office and production delays.
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At large, the industry is still finding its footing, as the US domestic box office has struggled to reach pre-pandemic levels due to changing consumer behavior, decreased movie output, and the lingering impact of strikes in 2023. Moreover, Hollywood is only beginning to integrate AI into a labor force still wary of the technology following those labor disputes.
Courteney Cox attends the Los Angeles premiere of "Scream 7" at Paramount Pictures Studios on Feb. 25 in Hollywood, Calif. (Axelle/Bauer-Griffin/FilmMagic) (Axelle/Bauer-Griffin via Getty Images)
Despite these headwinds, Wall Street remains bullish on the brand's "analog" strength. JPMorgan analyst David Karnovsky recently reiterated an Overweight on IMAX stock, raising his price target to $48.
Karnovsky highlighted that IMAX's value doesn't come from chasing trends, but from its "evolving programming strategy." He noted that the company executes on this strategy by running films from different studios simultaneously, carving out exclusive windows for high-demand content.
IMAX's AI strategy mirrors the way the broader workforce is feeling the shift. Across corporate America, companies are leveraging AI to automate repetitive administrative tasks and optimize logistics. At IMAX, this translates to better margins and a higher "tech revenue" mix, per Karnovsky.
He further noted that IMAX is successfully managing its slate dynamically, adding titles like "Scream 7" to fill gaps. The company's story isn't so much about the digital takeover as its ability to maintain its status as a premium consumer brand in an era when audiences will only leave their couches for a truly differentiated experience.
Francisco Velasquez is a Reporter at Yahoo Finance. Follow him on LinkedIn, X, and Instagram. Story tips? Email him at francisco.velasquez@yahooinc.com.
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