AI sparks concern as Hollywood’s vertical film industry continues to grow

Hollywood’s growing interest in films designed for mobile phones is facing fresh questions about artificial intelligence, with filmmakers warning that the technology could threaten creative jobs and undermine production quality.

The concerns emerged following New York’s inaugural Alza Festival, held from 16 to 18 October 2026, which brought together filmmakers, actors and industry executives working in the rapidly expanding world of vertical entertainment.

The festival showcased films and short-form series created specifically for smartphone screens, celebrating an emerging industry that has attracted significant investment and attention.

However, discussions surrounding the event also highlighted growing unease about the increasing use of generative AI in productions that already operate on relatively small budgets.

What are vertical films?

Vertical films are created to be viewed on smartphones held upright, rather than on traditional widescreen televisions or cinema screens.

Many take the form of microdramas, with stories divided into short episodes designed to encourage viewers to keep watching.

Romance, family conflicts, mysteries and relationship stories are particularly popular, with dramatic cliffhangers frequently used to build anticipation between instalments.

Platforms including ReelShort and DramaBox have helped establish the format, attracting audiences who increasingly consume entertainment through mobile devices.

The approach shares similarities with traditional soap operas, particularly its emphasis on continuing storylines, emotional relationships and regular revelations.

However, while established television soaps typically develop stories across longer episodes, microdramas are designed around much shorter bursts of viewing.

Award-winning filmmaker raises AI concerns

One of the strongest warnings about artificial intelligence came from filmmaker Salvador Pakowitz, who received Alza’s Best Director award for his film Layover.

Pakowitz, who also co-wrote The Age of Adaline, expressed concern about companies relying increasingly on generative AI rather than investing in traditional filmmaking.

He questioned whether the rapid adoption of AI was genuinely creating opportunities for actors and production workers, particularly as companies search for cheaper methods of producing entertainment.

His film Layover, a 90-minute comedy, was made using traditional production methods rather than generative AI.

Pakowitz also highlighted the potential consequences of introducing AI gradually into filmmaking, beginning with backgrounds and visual elements before potentially extending to human performances.

The concern is that technology initially presented as a tool for assisting filmmakers could eventually become a means of replacing actors, crews and other creative professionals.

Microdramas attract growing industry interest

Despite those concerns, vertical entertainment is becoming an increasingly established part of the wider streaming market.

The Alza Festival featured 35 world premieres alongside industry discussions and awards recognising achievements in vertical storytelling.

RelationShiTs received Best Vertical Series, while Voicemails From My Neighbor won Best Vertical Short.

Entertainment executives are also exploring how the format could appeal to audiences seeking alternatives to traditional television.

GammaTime, co-founded by former Miramax executive Bill Block, is among the businesses targeting viewers interested in accessible, mobile-first entertainment.

The industry’s growth demonstrates that there is commercial interest in stories created specifically for smaller screens, although questions remain about long-term audience loyalty and production standards.

Can AI and traditional filmmaking coexist?

Generative AI offers production companies opportunities to create backgrounds, visual effects and other material more quickly, potentially reducing the costs associated with producing large numbers of episodes.

However, that efficiency comes with difficult questions about employment, originality and the value of human creativity.

For emerging filmmakers, vertical entertainment could provide a route into an industry where traditional television and film opportunities are increasingly competitive.

The risk is that some of those opportunities could disappear if companies prioritise automated content over employing performers and production teams.

The Alza Festival demonstrated genuine enthusiasm for mobile-first storytelling, with filmmakers attempting to establish vertical productions as a serious entertainment format.

Whether the industry can balance technological development with support for human performers and creators could prove important to its future.