Hollywood TV and film studio Lionsgate is putting more emphasis on AI, naming Katheleen Grace as the company’s first chief AI officer.
Grace is the former chief strategy officer of AI company Vermillio, which built a platform to license and protect IP and likeness by allowing creatives to track, authenticate and be compensated for the use of their work in AI models.
In her new role, Grace will lead the studio’s AI strategy and execution and report to Lionsgate CEO Jon Feltheimer. According to Variety, responsibilities will include providing tools that help filmmakers on the creative front, create opportunities for efficiencies in production, marketing, distribution and administrative operations, and guide efforts to protect the studio’s IP and its talent partners.
Prior to Vermillio, Grace led New Form digital studio, where she developed 43 pilots, with 23 series sold to networks including TBS, Freeform, Quibi and Refinery29.
On Lionsgate’s earnings call Thursday, Feltheimer commented on the hire, saying Grace is “somebody who obviously has a very strong grasp of AI” and the ecosystem, and emphasized the hire shows “how important this is as we integrate it into every facet of our business.”
And protections for talent around AI are important to Lionsgate.
Executives noted that in addition to Grace’s creative background she has experience at Vermillio, a company focused on “the protection of creators and talent in respect to AI adoption.”
“So that’s a real priority for us,” Felthimer said.
Lionsgate is the studio behind franchise hits like The Hunger Games and John Wick. In 2024 it struck a first-of-its-kind deal with genAI studio startup Runway to train a new custom AI model on its content library for use in the content creation process.
During Thursday’s call Lionsgate executives reiterated “a really strong relationship” with Runway and said that they’re experimenting in many ways.
Grace will be the point person for conversations going forward and Lionsgate’s chief expects “to have some pretty interesting ones with all of the major AI companies in terms of potential future partnerships.”
Asked by equity investment analysts on the call about how the studio is already employing AI, Vice Chairman Michael Burns said Lionsgate is using the technology for aspects like scheduling FAST channels, enhancing effects in postproduction, including use on Spartacus, and intends to use AI “a little bit more this year.”
Lionsgate has also turned to AI in the motion pictures business, where it’s looking at the technology to enhance script revisions while working with writers and has integrated AI into technical operations.
“If we’re playing with it in any original creation ways, maybe we are, but I’m not going to talk about it,” Burns commented.
During Lionsgate fiscal year 2026 third quarter, the company reported $724.3 million in revenue, on the back of $421 million in motion picture revenue, up 35% yoy driven by the releases of The Housemaid and Now You See Me: Now You Don’t.
The television production segment saw revenue of $303.1 million and segment profit of $55.7 million decline yoy.
The studio’s trailing 12-month library revenue increased 10% yoy to a record $1.05 billion.
In a note to investors Wolfe Research analyst Peter Supino wrote that despite a post-COVID reputation of lackluster theatrical releases, the firm is still bullish on the company’s fiscal year 2027 and 2028 slate.
“We’ve long cautioned that Lionsgate needed a young franchise. The Housemaid’s success exemplifies the playbook executed correctly: de-risked via established IP, mid-budget production, and significant franchise upside,” wrote Supino. “Management now has line-of-sight to two sequels, further de-risking the slate.”