China's New AI Film Studio Could Transform How Movies Are Made With Real Actors

Chinese streaming platform iQIYI has opened a new AI film studio in Shanghai that allows filmmakers to record performances with real actors before using artificial intelligence to transform the scenes around them.

The facility has already begun production on its first film, Cop in Trouble, with shooting starting on 28 October 2026. Rather than creating an entire film using AI-generated characters, the company is combining traditional acting with technology that can alter sets, lighting, costumes and other visual details after filming.

iQIYI describes the facility as China's first AI film studio, although that distinction has not been independently established. The approach raises questions about the future of filmmaking, particularly whether smaller production teams could create ambitious films without the expense of building elaborate sets or travelling to multiple locations.

How Does iQIYI's New AI Film Studio Work?

The studio is located at the iQIYI Creative Center in Shanghai and covers approximately 110 square metres, making it relatively compact compared with many conventional film production facilities.

It is equipped with multiple cameras, synchronised high-resolution video and audio recording, digital continuity tools and equipment that allows filmmakers to review their footage during production.

Once a scene has been recorded, the footage is automatically transferred to NadouPro, iQIYI's AI-powered film and television production platform.

The system provides access to nearly 30 AI models, including Seedance 2.5 and Kling 4.0, alongside hundreds of specialised AI tools designed for production tasks.

Using the original recordings as a reference, filmmakers can generate new visual environments and adjust the appearance of scenes while retaining the recorded performances. For example, a conversation filmed on a relatively simple set could be placed within a more elaborate digital environment, potentially reducing the need to construct that setting physically.

However, iQIYI has not released detailed comparisons showing how much time or money the Shanghai studio saves compared with conventional production methods.

Will AI Replace Actors or Change Their Performances?

One of the central features of the studio is its emphasis on using real performers rather than replacing them with entirely AI-generated characters.

Liang Zhu, iQIYI's vice-president and head of intelligent production, has emphasised that acting remains central to the filmmaking process.

The studio is designed to give directors more flexibility over the visual presentation of a scene while retaining the expressions, movements and interactions captured during filming.

That distinction is important because AI filmmaking is often associated with generating characters and performances without using actors. However, the technology also raises questions about how much of a recorded performance could be altered during post-production.

If filmmakers can change costumes, make-up, surroundings and character appearance, questions arise about where visual enhancement ends and alteration of a performer's work begins.

iQIYI has not publicly detailed the consent arrangements, contractual protections or approval processes governing such alterations at the new facility.

These issues are already part of wider discussions about AI in film and television, particularly as performers and production companies consider how digital likenesses and recorded performances should be protected.

What Is Cop in Trouble About?

The first production at the Shanghai studio is Cop in Trouble, an internet feature film following Jian Zhang, a low-ranking police constable who becomes caught in an increasingly complicated situation while pursuing a notorious outlaw.

As his attempts to defeat the criminal develop, the lies he has told begin to unravel, threatening the reputation, wealth and admiration he has gained.

The production is using real actors to record conversations and action sequences, with their performances becoming the foundation for additional AI-generated visual elements.

That includes using the footage to guide character appearance, camera composition, lighting and the relationships between people and their surroundings. The film will provide an opportunity to assess how effectively the technology combines human performances with digitally generated environments.

However, iQIYI has not announced the film's release date, production budget or the proportion of finished footage that will contain AI-generated elements.

It has also not confirmed whether Cop in Trouble will be made available internationally.

Could AI Studios Make Filmmaking Cheaper?

One of iQIYI's ambitions is to make ambitious productions more accessible to filmmakers working with limited resources.

Traditional film production can involve expensive location shoots, elaborate physical sets, transport costs and additional filming when scenes need to be changed.

AI-assisted production could potentially reduce some of those demands by allowing visual environments to be developed or revised after actors have completed their scenes.

The Shanghai studio builds on iQIYI's earlier virtual production work in Hengdian, where the company reported efficiency improvements of more than 30%.

However, that figure relates to the earlier facility and should not be treated as evidence that the new Shanghai studio has achieved the same results. There are also additional costs to consider, including AI processing, post-production work, quality control and the specialist staff required to manage the technology.

Without published production figures, it is not yet possible to establish whether this approach is cheaper overall or simply shifts costs into different parts of the filmmaking process.

What Could This Mean for the Future of Film and Television?

The opening of the Shanghai studio reflects growing interest in combining conventional production methods with generative AI rather than using the technology to create films entirely from prompts.

For actors, the approach potentially preserves their involvement in producing performances, while giving directors greater freedom to develop the visual world around them.

For smaller production companies, it could offer opportunities to create settings and sequences that would otherwise require larger budgets. However, questions about artistic control, consent, employment and production costs will become increasingly important as the technology develops.

The success of iQIYI's approach will ultimately depend on the finished results rather than the capabilities described in its announcement.

With Cop in Trouble already in production, the film will become an early test of whether real performances combined with AI-generated environments can deliver convincing results for audiences.