HOW ADVERTISERS CAN THRIVE IN AN ERA OF DISRUPTION AND INNOVATION

SAG-AFTRA Contract Negotiations and AI Are Shaping Advertising — Why You Need a Production Consultant  

The advertising landscape is undergoing significant shifts, spurred by evolving SAG-AFTRA contract negotiations and the increasing influence of AI. At the intersection of creativity, strategy, and production, advertisers are navigating challenges and opportunities that could redefine their approach to campaigns. By understanding these shifts and leveraging the expertise of a production consultant, advertisers can position themselves for transformation and growth.

Understanding SAG-AFTRA Contract Negotiations And Their Impact

SAG-AFTRA contract negotiations hold a mirror up to the changing dynamics of the entertainment and advertising industries. The 2025 SAG-AFTRA Commercials Contract introduces changes that advertisers must be fully aware of to stay competitive.

Key takeways from the new contract include:

• AI and Synthetic Performers: Performers’ compensation and consent for digital replicas and synthetic characters have been clearly defined, providing transparency and ethical usage rights for performers while ensuring brands are not at risk of SAG infringements.

• Longer Use Periods: The maximum period of use has been extended.

• Updated Social Media Liability Cap: Liability for social media and YouTube reuse after the Maximum Period of Use is now aligned.

• Enhanced Wage, Fees, and P&H Scales: Adjustments have been made to reflect contemporary industry standards.

These changes are not merely administrative; they directly affect how campaigns are planned and executed. For advertisers, understanding and effectively navigating the SAG-AFTRA ecosystem is critical to avoid compliance risks while unlocking cost-saving opportunities. Employing a production consultant with in-depth knowledge of union contracts can ensure advertisers fully capitalize on these benefits and mitigate penalties associated with non-compliance.

The Role of AI in Advertising and Creative Production

Artificial intelligence is a game changer across industries, and advertising is no exception. From scriptwriting to virtual actors, AI is reshaping production processes. However, it also introduces complexity, especially amid ongoing labor disputes tied to AI’s impact.

SAG-AFTRA negotiations highlight concerns for job security, digital likeness rights, and AI-generated content residuals. The rise of AI-driven tools—such as virtual actors, machine-generated visuals, and chat-based customer support—raises questions about the balance between efficiency and the ethical use of technology.

For advertisers, the power of AI lies in its ability to enhance agility and creative possibilities. AI-driven solutions can streamline production workflows, from automating post-production edits to personalizing ads with data-driven insights. However, the need for strategic decision-making grows as advertisers must assess when and where to incorporate AI and how to align its use with emerging contract stipulations.  

Why Advertisers Should Leverage a Production Consultant

With SAG-AFTRA negotiations developing and AI technology advancing, advertisers now more than ever need expert guidance to keep operations smooth and visionary. A production consultant serves as a critical partner, offering insights, strategies, and innovative approaches tailored to advertisers’ goals.

Here’s how a production consultant like APR delivers value to advertisers navigating these shifts:

• Union and Contract Expertise: Organizations risk overpaying for services when competitive, more cost-effective suppliers aren’t given a fair shot.

• AI Integration Planning: Smaller, innovative vendors are discouraged from participating in biased bidding systems, reducing supplier diversity long-term.

• Proactive Problem Solving: A lack of transparency in the bidding process can result in distrust between stakeholders, partners, and even consumers.

• Efficiency-Driven Strategies: Organizations risk overpaying for services when competitive, more cost-effective suppliers aren’t given a fair shot.

• Future-Proofing Creative Production: Smaller, innovative vendors are discouraged from participating in biased bidding systems, reducing supplier diversity long-term.

APR's Proven Track Record  

As an independent and unbiased consulting partner, APR’s mission is to empower advertisers through data-driven insights, subject matter expertise, and innovative solutions. With 20+ years of experience, an extensive intelligence library (APRIL), and an ANA-endorsed training program, APR consultants consistently turn creative challenges into opportunities for growth.  

APR Provides:  

• Industry trend foresight to help businesses stay innovative and thrive.  

• Transparent processes to ensure maximum efficiency and compliance.  

• Benchmarked data to track and improve production investments against business goals.  

Moving Forward Strategically  

The intersection of SAG-AFTRA contract updates, AI disruption, and advertiser responsibilities presents both new challenges and exciting opportunities. Those advertisers who understand the changes, adopt agile approaches, and employ the right expertise will be best equipped to lead in this constantly evolving landscape.

Take the Next Step

Connect with APR today to learn how production consulting can transform your advertising operations and empower your business for the future.