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Jeffrey Katzenberg
Co-founder of WndrCo, WndrCo

Hollywood & Creativity in the Age of AI

📅 Oct 07, 2026 Google Zeitgeist 22 MIN 311 VIEWS 28 SEGMENTS · 3 SPEAKERS
Hollywood titans Kathleen Kennedy and Jeffrey Katzenberg sit down with Google's James Manyika for a candid conversation on cinematic creativity, the future of filmmaking, and the new tools opening doors for a new generation of storytellers.

What Jeffrey Katzenberg said

Written from the verified transcript and checked against it. Every figure links to the moment it was said.

Jeffrey Katzenberg discussed his essay on generative video and the importance of human creativity, arguing that the essential ingredient often missing is the human touch. He recounted the story of making Toy Story at Disney, including the internal resistance from Roy Disney and the pivotal support from Michael Eisner, noting that such a venture would be impossible to start inside a studio today. He drew parallels between filmmakers and tech founders, highlighting cultural differences in handling failure, citing his own experience with Quibi. Katzenberg emphasized that AI cannot replicate the spontaneous creativity of artists, using Eddie Murphy's improvised lines in Shrek as an example. He expressed confidence that respecting artists and providing them with better tools will lead to a renaissance in storytelling, and he plans to champion this idea in his next chapter.

Key takeaways

  1. Katzenberg believes the human touch is the essential ingredient often missing in generative video, and that Hollywood and tech must come together for a creative renaissance.
  2. He recounted that Michael Eisner's support was the only reason Toy Story got made, despite Roy Disney's opposition.
  3. He argued that starting Pixar today inside any studio would be impossible due to the need for a clean slate and entrepreneurial spirit.
  4. Katzenberg stated that AI cannot replicate the spontaneous creativity of artists, using Eddie Murphy's improvised lines in Shrek as an example.

Numbers and commitments

FigureWhat it refers toTypeAt
10 million people who read his essay metric 0:04
$21 million budget for Toy Story price 4:53
1995 year Toy Story was released timeline 11:50
10x increase in animation employment after Toy Story metric 12:07

Chapters

  1. 0:00Essay on generative video and human touch
  2. 2:02Toy Story origin story and internal resistance
  3. 5:51Michael Eisner's decisive support
  4. 13:56Parallels between filmmakers and tech founders
  5. 19:59AI cannot replicate spontaneous creativity

Questions asked in this interview

4
  1. 11:55Are you going to say you did more box office than we did seven years later?
  2. 13:35Are there any parallels you see between those two worlds, especially now that you're advocating that they work together?
  3. 18:25So that was one of the first things we started trying to define was, is there a way can we come up with something that's CGI?
  4. 19:53What do you want to do?
Interviewer 0:04 ↗
Actually, Jeffrey, let me start with you. A few weeks ago, you wrote what some have called a manifesto on how you think about this moment and technology, and AI and creativity. And I think it's had, what, 10 million people read this thing. Talk about what you were saying provocatively in that piece, but also, if you take a moment, tell the story of what happened with Toy Story and how you got to make it.
Jeffrey Katzenberg 0:33 ↗
Just to give context, I'm sure very few people in this audience actually read it because it's way too long. But in essence, I spent a good amount of time in this last six or nine months trying to look at the world of generative video. I kind of went across the globe and looked at all of the amazing work that's getting done, and while I was incredibly impressed and excited by it, I found an essential ingredient either not understood, not appreciated, not valued, or even dismissed, which is the human touch. What is the difference between creating and creativity? And there's a real distinction between that. On the other hand, likewise, the growing fear and resistance in Hollywood is just palpable. And the only way in which this is going to achieve, I think, the most optimistic outcome is for these two worlds to actually come together and understand that together, they actually can create a genuine renaissance in all forms of video, but particularly in great storytelling.
So I wrote this essay, which really starts from the perspective of being in the center of this through several chapters earlier in my career. And I shared with James a particular very relevant moment here. So I would say late 1980s, '88, '89, somewhere in there. So I'm running the Walt Disney Studios at the time. We're having this extraordinary renaissance in animation: Little Mermaid, Beauty and the Beast, Aladdin, Lion King in the works. And I see this little short film called Luxo Jr., made by a company in Northern California called Pixar. The creative genius behind it was John Lasseter, who, interestingly, had been at the Walt Disney Company in the animation company before I got there. So the first thing I did is I went there and I did everything I could to recruit him and have him come back to join the studio and give him a real leadership position there. And he just was not interested at that point. He and Ed Catmull were well into their adventure of building Pixar, supported by the amazing Steve Jobs. So I then went to Steve, and to make a long story short, made a three-picture deal to develop Toy Story into a feature film and go on from there.
So the interesting thing about this, relevant to it, is that within Disney, the traditional animation studio, which right now, at that moment in time, is literally on fire, could not be hotter, could not be doing better. My boss was Roy Disney. So Roy was the nephew of Walt. He was the person who recruited Michael Eisner, Frank Wells, and myself to come to the company. And Michael... he was vice chairman of the Walt Disney Company and he was the head of animation. So within animation, I reported to Roy, and over the course from 1984 till this time, had actually a very, very good relationship, was very deferential to Roy. And when I made the deal to develop this inside of the animation studio, there was enormous rumblings about, why are we doing this? Why are we supporting this company? It's not our brand. We don't own it. It doesn't embrace our legacy and our heritage, the handcraft, the beauty of it. You can imagine all of this, but they all thought it was a shitty idea. Nothing was ever going to come of it. So they just sort of humored me mostly, but not all.
And then we got to the point where they actually had a movie and it was ready to be greenlit. There was a story reel on it, and the characters — Tom Hanks and Tim Allen — were all cast in the film. And it was a $21 million budget, which was a third of Lion King. And I said, OK, we're going to make the movie. And Roy came to me and started very nice and very polite: 'I don't think this is a good idea. It's just undercutting everybody at the studio. And you shouldn't do this.' And I said, OK, well, let me think about it. Which I did for a second or two. And then the next day I said, listen, I understand, Roy, but it's different and I think it's fine. And we've got a long-term deal with these people and we should go do it. And he said, well, we're not. And I said, OK.
So he went to Eisner, who was my boss at the time, and said to Michael, Jeffrey wants to make this movie. And for all these reasons, it's a mistake and we shouldn't make it. So Michael comes and says, show me everything. And the one thing I will say about Michael, whatever our divisions were in all the years we worked together, the thing we were always simpatico about was creative ideas and stories and stuff like that — we just were so complementary to one another in the creative process. Anyway, long story short, Michael goes through, runs the story reel of it, I fill him in on all the details, the budget, all of that, and says to me, make the movie. I'll handle Roy. And that's the only reason that movie got made. And I can tell you today, and I've had this conversation, if you try to start Pixar today inside any studio, any of them, it's not possible. It's just the entrepreneurial spirit that you need — all rules, all knowledge, everything you've done one way before, you have to have a clean slate. So you need a clean slate.
Interviewer 7:00 ↗
But let me turn to Kathleen. I mean, you've had a ringside seat to some of the most iconic filmmaking, from Jurassic Park, Star Wars, and all of that. And talk a little bit about the role that technology played in that, because I think in the Jurassic Park movies, that was — didn't have the original idea of having digital dinosaurs.
Kathleen Kennedy 7:22 ↗
No, and I think what's interesting when you think back, first of all, as you were talking, I was thinking timing-wise, that was very close to the first CG shot we ever did, which was on a movie I also was a part of called Young Sherlock Holmes. And that was John Lasseter. And John Lasseter was inside Industrial Light & Magic at the time, before George sold Industrial Light & Magic, which then went to Disney and became Pixar. So it all gets very incestuous here. But because my career was synonymous with George Lucas and Steven Spielberg, George Lucas obviously was incredibly interested in technology right from the beginning. I'll take a little side note here. We just finished the 50th anniversary documentary on George making A New Hope. And interestingly enough, there are interviews in this that no one's ever heard because the recordings were so bad that you couldn't hear anything he was saying. And we just used AI to dig it out. So you're going to actually hear him talking at the time about making A New Hope. And it's pretty phenomenal. And that's going to air probably in January. So as a segue, anyway.
When we were doing Jurassic, we actually had the benefit of time because we had started to do the movie at a point where we were still using stop-motion technology and CGI was nowhere near ready. But there were two people inside the company. Dennis Muren, who was like the godfather of special effects, had taken a hiatus, and there was a young 20-year-old we called Spaz. Spaz was Steve Williams, and he was a genius computer operator, and they were tinkering away while we had puppeteers with Stan Winston. We had, frankly, every single visual effects technology you could get your hands on. So we are meeting continually in this room, similar to what I'm sure engineers go through, in the same way we're exploring every single thing we can possibly use, because Steven basically said to me as the producer, I want a full-size dinosaur on the set to run. And he said it with a completely straight face. And that was my problem. So we're in the same boat. As filmmakers, we're trying to solve problems, and we're trying to use technology to help us solve the problem. So we're all sitting in a room. One day I get this phone call from Dennis Muren, and he says, I think I've solved the problem — not for the whole movie, but you should take a look at what we've done. So six of us are sitting in the theater, and we put up a wireframe on film of a dinosaur, just the skeleton of a dinosaur running across the screen. And everybody in the room jumped in the air because we were like, this is way beyond what we were planning to do. We scrapped everything, and I had to make the phone call, which I think explains what people are feeling today. These things happen like that. And I think we're feeling this in the industry right now, where there's lots of different techniques that people are relying on to get things done, to create images. But everyone knows that when this confluence happens, it can literally change overnight. And I think that certainly I witnessed that with Jurassic Park. We did ultimately 63 shots. And I think those shots hold up today. If you look at the movie again, by the way, the payoff, interestingly...
Jeffrey Katzenberg 11:50 ↗
So Toy Story comes out in 1995.
Kathleen Kennedy 11:55 ↗
Are you going to say you did more box office than we did seven years later?
Jeffrey Katzenberg 1:58 ↗
There are no hand-drawn animated movies made after that at all.
Kathleen Kennedy 12:07 ↗
Good point.
Jeffrey Katzenberg 12:07 ↗
And yet, employment in animation went up 10x what it was before. And I would say the same as visual effects. So there is a displacement that goes on. And that's what that essay is about, through many generations and many transformations in it. And that's the scary part about it.
Kathleen Kennedy 12:27 ↗
It is.
Interviewer 12:27 ↗
But I want to come back to something, Kathleen. One of the things I'm curious what you and Steven and George felt, because all of you had these what seemed to me ambitious ideas for what could be possible. And the technology just hadn't quite caught up. So didn't you end up inventing some of it?

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Cite this transcript

APA, MLA, BibTeX
APA

Katzenberg, J. (2026, October 7). Hollywood & Creativity in the Age of AI [Interview transcript]. Google Zeitgeist. CEOInterviews.AI. https://ceointerviews.ai/interview/3008457/

MLA

Jeffrey Katzenberg. "Hollywood & Creativity in the Age of AI." Google Zeitgeist, 7 Oct. 2026. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/3008457/.

BibTeX
@misc{katzenberg2026_3008457,
  author       = {Jeffrey Katzenberg},
  title        = {Hollywood \& Creativity in the Age of AI},
  howpublished = {Interview transcript, Google Zeitgeist. CEOInterviews.AI},
  year         = {2026},
  month        = {oct},
  url          = {https://ceointerviews.ai/interview/3008457/},
  note         = {Speaker-attributed transcript with timestamps}
}