New Delhi [India], May 4 (ANI): Adoption of Artificial Intelligence (AI) can increase revenues by 10 per cent and reduce costs by 15 per cent for media and entertainment companies, Ernst & Young (EY) asserted in a report published during the first edition of WAVES Summit.

The global media and entertainment (M&E) industry is undergoing a dramatic transformation, driven by the proliferation of artificial intelligence (AI).

From content creation and curation to monetisation and distribution, AI is becoming integral to how stories are told and consumed.

'Our analysis indicates that in the medium term, AI can increase revenues by 10 per cent and reduce costs by 15 per cent for media and entertainment companies,' the EY report titled 'A studio called India: Content and media services for the world' said.

EY said that India, already a powerhouse in content production and IT services, is uniquely poised to lead this transformation.

'The convergence of its deep talent pool, rapidly maturing AI ecosystem, and proven capabilities in media production positions India as a strategic node in the global AI-M&E value chain,' EY said.

Indian companies are leveraging Genai tools for creative purposes and campaign optimisation, content performance improvement and audience engagement.

OTT platforms have started using AI to offer hyper-targeted content recommendations based on regional preferences, affluence, geo-targeting and consumption patterns. On the monetisation front, AI drives dynamic (and customised) ad insertions and optimises pricing strategies through real-time viewer analytics.

AI is also being used as a tool for localisation and accessibility purposes.

'Automated dubbing, AI-based subtitling and voice cloning are enabling faster localisation of global IPs across markets. Tools such as VisualDub5 offer full-stack solutions to adapt, dub, and culturally localise entertainment content, including lip-syncing for high-visibility assets like celebrity ads and trailers. These services allow global studios to scale up multi-language releases while maintaining narrative fidelity,' said the EY report.

According to EY, India offers a strong mix of technical and creative skills. With a sizable portion of the world's AI talent pool and thousands more joining annually, hundreds of AI start-ups focus on media and entertainment-specific applications, from audio synthesis to content moderation.

Indian VFX and post-production units deliver services at a lower cost than their Western counterparts, and this is now enhanced further with AI tools.

India's media and entertainment sector is uniquely positioned with a robust talent ecosystem, driven by its cultural and linguistic diversity, young demography and rapid digital adoption.

'This diversity enables the creation of regionally rooted yet globally appealing content, while a tech-savvy workforce drives growth across high-demand areas, such as animation, VFX, gaming and post-production. Additionally, India's cost advantage and English proficiency have solidified its status as a global outsourcing hub for creative services,' EY noted.

The rapid rise of the creator economy--supported by government initiatives such as a USD 1 billion fund for content creators and the proposed Indian Institute of Creative Technologies in Mumbai--is unlocking fresh employment avenues.

The growing influence of digital platforms like YouTube and Instagram has also fueled demand for professionals skilled in influencer marketing, content strategy and social media management.

The media and entertainment sector in India currently employs 2.8 million people. In addition, around 10 million indirect jobs have been created, primarily in the events, music and content production segments. Online gaming, and Digital and OTT are the fastest-growing segments in terms of direct employment potential, according to EY.

'India's M&E sector offers immense opportunities for foreign investors and filmmakers. The diverse range of entity options, coupled with favorable FDI norms and attractive production and co-production incentives, make India a lucrative destination for business and filmmaking. By leveraging these opportunities, foreign entities can establish a strong presence in India's vibrant media and entertainment landscape,' EY said in its concluding remarks. (ANI)