SAG-AFTRA opened 2026 contract talks with Hollywood studios on February 9, and one proposal is already reshaping the conversation: the Tilly Tax. It would charge studios a fee every time they use an AI-generated actor likeness, treating synthetic performances more like music royalties than a one-time cost.
AI Actors Reshape Hollywood Contracts
Most existing SAG-AFTRA agreements were written long before generative AI could convincingly replicate a performer’s face, voice, and movement. That gap created a dangerous gray zone where studios can deploy digital doubles without ongoing compensation.
The stakes became undeniable when Seedance 2.0 generated unauthorized videos featuring major celebrity likenesses. The union responded sharply: “This is unacceptable and undercuts the ability of human talent to earn a livelihood. Seedance 2.0 disregards law, ethics, industry standards and basic principles of consent.”
Performers’ core fears center on three concerns: digital cloning without consent or recurring pay, studios bypassing casting with synthetic performers, and erosion of residual structures that have sustained working actors for decades.
Over 10,000 students have already attended AI filmmaking courses through programs like Curious Refuge. The talent pipeline for AI-driven production is expanding whether unions are ready or not.
The Tilly Tax Explained
Think of the Tilly Tax like a music royalty. Every time a streaming service plays a song, the songwriter gets paid. The Tilly Tax works the same way: studios owe a fee each time they commercially use an AI-generated actor likeness.
The proposal covers three scenarios: fully synthetic AI actors modeled on real performers, AI-enhanced performances built on a real actor’s digital scan or voice data, and posthumous or archival use of a likeness without new consent.
The proposal takes its name from Tilly Norwood, described as Hollywood’s first AI actor. Her situation put a human face on what union members had long feared. If SAG-AFTRA secures this framework, it becomes a template for writers, musicians, and voice actors navigating their own AI negotiations worldwide.
