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Speaker 1: Artificial intelligence avatars. The Arizona Supreme Court is using the

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Speaker 1: tech to simplify and report on court rulings with the

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Speaker 1: public now. These avatars avatars were made by a company

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Speaker 1: called Creati five.

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Speaker 2: It's an AI video.

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Speaker 1: Ad platform that just raise about fifteen point five million

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Speaker 1: dollars in a series a funding round co led by

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Speaker 1: Wonderco and Kindred Ventures. Please to say, joining us now

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Speaker 1: to discuss that is Jeffrey Katzenberg, founding partner at Wonderco,

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Speaker 1: and enon Na, the co founder and CEO of Creati five.

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Speaker 2: Welcome to both of you.

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Speaker 1: Great to see you, Jeffrey and enon I want to

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Speaker 1: start with you because I'm absolutely fascinated by what you're doing.

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Speaker 1: When somebody told me about Creative five, my first thought

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Speaker 1: was why would.

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Speaker 2: I need this? This is for playing games?

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Speaker 1: And someone pointed out this Supreme Court, the Arizona Supreme

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Speaker 1: Court using this as a way to sort of explain

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Speaker 1: these rulings, explain what's on the public docket. Can you

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Speaker 1: just say, explain to me how you came up with

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Speaker 1: this idea and did you expect it to be used

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Speaker 1: in that type of application.

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Speaker 3: Thanks for having me, so we started this idea of

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Speaker 3: experience working as snaptats or help build a Snapchat video

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Speaker 3: platform cos small line. So we realize there's a tremendous

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Speaker 3: demand for this short from video parrel right like there's

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Speaker 3: all the advertisers want to run on as with the

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Speaker 3: short from video platform formats. And so we inspire us

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Speaker 3: to pre this idea, to use AI to radically make

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Speaker 3: the video preation easier.

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Speaker 4: And I mean, to be honest, we didn't.

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Speaker 3: It's back the use case you just described, but we

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Speaker 3: are actually applying our video technology to different use case

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Speaker 3: right starting from advertising. Now we're seeing new use case

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Speaker 3: like what you just mentioned, and it's very pascitating us.

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Speaker 1: So, Jeffrey, I am curious as to how you came

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Speaker 1: about this. Of course you've been investing in a lot

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Speaker 1: of companies in the entertainment and the tech space, and

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Speaker 1: it's all kind of of course, we now see this

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Speaker 1: is all kind of merge together calling the tech media.

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Speaker 1: It's kind of a mood at this point when you

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Speaker 1: came across what non was doing. What was it about

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Speaker 1: it that made you take interest?

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Speaker 4: Well, I think a couple of things.

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Speaker 5: So One, storytelling tools have always evolved, and I've always

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Speaker 5: been looking for whatever the best tools are to put

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Speaker 5: in the hands of storytellers, and great technology turns storytelling

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Speaker 5: into really a creator and a business success, which is

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Speaker 5: in fact what Creatify does. The thing I keep coming

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Speaker 5: back to and just feel so strongly about is the

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Speaker 5: human touches everything AI. It follows a vision, direction and feedback,

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Speaker 5: and so Creatify isn't replacing the marketers, it's actually amplifying them.

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Speaker 6: Does it worry you, Jeffrey, that at some point it's

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Speaker 6: going to just take away jobs on the creative front.

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Speaker 6: I mean, I know this is just one slice, and

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Speaker 6: it's not necessarily like writing or directing a movie, but

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Speaker 6: you can see how we'd get there.

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Speaker 5: Again, I come back to the human touch here, I

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Speaker 5: think is just absolutely essential and fundamental. And so the

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Speaker 5: answer is what I think it does is it democratizes storytelling. So,

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Speaker 5: as a perfect example here, what Creatify does, very specifically

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Speaker 5: around advertising and advertising is very much a story telling enterprise,

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Speaker 5: and it takes something that would cost many, many tens

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Speaker 5: of thousands of dollars and maybe take four or six

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Speaker 5: or eight weeks, and it actually is able to do

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Speaker 5: it in minutes and at a fraction of the cost.

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Speaker 4: And so what that.

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Speaker 5: Means is is that you have the best tools in

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Speaker 5: the hands of more people than ever before, and out

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Speaker 5: of that is going to come great work, great creativity,

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Speaker 5: and I think ultimately business success, you know.

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Speaker 6: And Jeffrey brings in that human touch element which always

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Speaker 6: raises the question of the inputs, right like the lms,

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Speaker 6: the large language models, where you're getting the source rum

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Speaker 6: to then fuel the AI and the copyright issues surrounding that,

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Speaker 6: how are you guys thinking about it?

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Speaker 4: So we actually.

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Speaker 3: Take a lot of data from the brand itself and

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Speaker 3: we augmented using our AI. So the way it works

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Speaker 3: is we'll take the information from the brand and we'll

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Speaker 3: ingest into our video generation model, and our video generator

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Speaker 3: be able to analyze all the information and be able

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Speaker 3: to general very personalized, tailor made advertising content.

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Speaker 4: For each brand.

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Speaker 3: And we take like data privacy and trust safety very

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Speaker 3: seriously and we have very strict content moderation rule to

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Speaker 3: make sure all the data are used properly.

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Speaker 1: Is there a sense though, and when we talk about

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Speaker 1: the use case for this, what do you think the

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Speaker 1: trust level for users are going to be? So we

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Speaker 1: use as an example of the Arizona Supreme court, and

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Speaker 1: it's a certain practical application. There's been other cases where

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Speaker 1: people have tried to use AI avatars in court room

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Speaker 1: functions without necessarily informing the court that they were using them.

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Speaker 1: That's led to a lot of laughs, but it's also

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Speaker 1: reason about a question about what I can believe with

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Speaker 1: my own eyes? How do I know what's real when

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Speaker 1: I see AI has gotten so good?

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Speaker 3: Yeah, yeah, definitely like making a lot of like change

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Speaker 3: to how advertising world works and the way we use

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Speaker 3: is we use like to really empower a lot of

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Speaker 3: business because traditionally, like for a small business.

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Speaker 4: Owner, if they want to run video advertising.

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Speaker 3: It's costs like thousands of dollars two to four weeks

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Speaker 3: and it's very cost prohibited. We qualify, we actually can

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Speaker 3: empower them to be able to create a video ass

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Speaker 3: within minutes and be able to grow their business.

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Speaker 4: So what we do here.

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Speaker 3: Is really to empower like entrepreneurship, empowered business so they

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Speaker 3: can actually focus what matters to grow their business.

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Speaker 4: So that's also the vision of really.

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Speaker 5: Five and remain it does it does well? Listen, It

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Speaker 5: does raise a point here which is should there be guardrails?

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Speaker 5: And the answer I believe is yes. But of something

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Speaker 5: that is so young and is evolving so quickly. The

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Speaker 5: balance here is between extraordinary speed of innovation and protection

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Speaker 5: and whether it's protection around copyright or it's for protection around.

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Speaker 4: Truth in fact.

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Speaker 5: You know, these are super important issues and I don't

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Speaker 5: know that we have the answers yet, but clearly there

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Speaker 5: need to be some guardrails.

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Speaker 1: I want to well, let me go in the creative space,

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Speaker 1: particularly given your background, Jeffrey obviously founding dream Works and

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Speaker 1: your time as a chairman of Disney Studios back in

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Speaker 1: the day kind of when movies were made still the

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Speaker 1: old fashioned way, and we've seen the evolution of technology

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Speaker 1: and now artificial intelligence in movie making as well.

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Speaker 2: It was interesting use case, particularly in.

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Speaker 1: The latest release of Fortnite and the use of AI

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Speaker 1: with some of the voices in there. Uh. You know,

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Speaker 1: I don't know what the business terms of that were,

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Speaker 1: what sort of contracts were signed, but it seemed to

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Speaker 1: raise a lot of hackles about fair use, about transparency

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Speaker 1: of use. And I am curious, and particularly in the

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Speaker 1: creative fields, how you see this evolving. I know it

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Speaker 1: can be complementary to the human.

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Speaker 2: Creative but will it be will we as humans be

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Speaker 2: willing to accept that.

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Speaker 5: Well, you know, that's on us. I mean I would

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Speaker 5: say to you yes. And you know, it's interesting because

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Speaker 5: if you go back and you look at how uh,

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Speaker 5: you know, the the evolution of these uh, you know tools,

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Speaker 5: you know, you look at animation going from a two

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Speaker 5: D business into you know, a CG business hand drawn

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Speaker 5: into state of the art computer animation was an amazing

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Speaker 5: disruption and uh.

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Speaker 4: And yet animation today is.

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Speaker 5: Bigger than it's ever been, and there are more people

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Speaker 5: employed working in it than ever before. The jobs, some

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Speaker 5: of which have been reinvented, some of which are new,

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Speaker 5: some of which.

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Speaker 4: Have gone away.

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Speaker 5: But it has absolutely been a tremendous positive impact on

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Speaker 5: the business. And so I look at what's happening today.

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Speaker 5: I don't think this is an evolutionary moment. It's a

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Speaker 5: revolutionary moment. It's impossible to see these incredible new releases,

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Speaker 5: whether it's Vo three coming out of Google or the

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Speaker 5: things that we are seeing coming out of Open AI

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Speaker 5: and Anthropic, and it is breathtaking. It's happening so fast

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Speaker 5: that I think there is anxiety of can we keep

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Speaker 5: up with this? Can we manage it in a productive way?

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Speaker 5: And one that protects, you know, creative rights and all

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Speaker 5: the things that surround that.

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Speaker 6: Well, Jeffrey, to that point, no one would have seen

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Speaker 6: this evolution coming in Hollywood for example, right, It's been

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Speaker 6: quite a ride. And COVID totally disrupt the industry also, so.

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Speaker 4: You got to add that.

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Speaker 2: On to it.

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Speaker 6: Fast forward for me five years, what does Hollywood and

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Speaker 6: the movie industry look like in the AI world and

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Speaker 6: in reality like it we're all gonna be watching bots

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Speaker 6: on YouTube?

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Speaker 4: Like what is it?

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Speaker 5: I think it's many things, is the answer to that, Alex.

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Speaker 5: I don't think it is just going to be one size,

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Speaker 5: you know, fits all here do I think there are

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Speaker 5: going to be movies and movie experiences. Absolutely from anybody

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Speaker 5: that went to the movie theaters this past weekend, the

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Speaker 5: biggest you know, Memorial weekend in the history of the

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Speaker 5: business with two incredible movies, you know, Yes, there's a

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Speaker 5: future for that. People love that communal experience.

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Speaker 4: On the end of other end of it.

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Speaker 5: You see TikTok and you see what you know creators

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Speaker 5: are doing today and YouTube has never ever been bigger

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Speaker 5: than it is right now, and so I'm very optimistic.

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Speaker 5: I do think there are new forms of storytelling, of

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Speaker 5: which these tools are going to be accelerants to that,

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Speaker 5: if not catalysts to them occurring. I don't believe it's

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Speaker 5: the end of Hollywood, not even a little bit. I

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Speaker 5: think probably just the opposite.

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Speaker 4: Will it function in the way.

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Speaker 3: That it has in the past, Absolutely not.

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Speaker 5: You know, at the Walt Disney Studio, we had one

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Speaker 5: hundred and thirty thousand frames of film, every single one

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Speaker 5: of which was drawn by hand with a pencil and

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Speaker 5: then inked and painted by hand. And then toy story

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Speaker 5: comes along, changes everything, and the outcome of it ultimately

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Speaker 5: was great success for Hollywood, for storytelling, for creators.

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Speaker 4: For business.

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Speaker 6: As long as we all know that we still need

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Speaker 6: financial anchors on television. That's that's the important part.

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Speaker 2: We never want to lose that.

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Speaker 5: You know, that's existential. It's not essential, it's existential.

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Speaker 4: That's right there.

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Speaker 6: You go, Thank you, Jeffrey.

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Speaker 5: I appreciate that back that I have good skincare, which

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Speaker 5: I learned about while we were waiting for you. I

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Speaker 5: think that's an important perk that needs to go with

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Speaker 5: the job.

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Speaker 6: I think it's important. I think there should be a

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Speaker 6: budget for that, you know, and to put this into

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Speaker 6: perspective talking about utilizing AI in many different forms. Yes,

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Speaker 6: and it's not an or. Who are some of your

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Speaker 6: customers right now? What kind of brands use your product

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Speaker 6: and how are they using it?

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Speaker 3: Yeah, we have a range of different customers from like

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Speaker 3: SMB owners to like marketers to agencies, and recently we

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Speaker 3: also got amazing traction from like very big brands like

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Speaker 3: Ali Baba, like sound Perks, like Hotspots using our tools,

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Speaker 3: so really serving them with their marketings and also all

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Speaker 3: their performance marketing team.

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Speaker 4: Are you using on our tools and how do you

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Speaker 4: like that to grow?

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Speaker 6: Like what of the kind of brands are you targeting

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Speaker 6: and what's your pitch to them?

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Speaker 3: So basically we started involved by building this like yeah,

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Speaker 3: ad Maker, which is a video question tool, but now

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Speaker 3: we're actually evolved into an end to end video ass solution,

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Speaker 3: not only helping brand with just app creation, also help

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Speaker 3: with the head research which is before the quation and

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Speaker 3: after creation, we help them to deploy to a different

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Speaker 3: platform and doing an organization. So really it's a one

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Speaker 3: stop shop for all your performance marketing needs.

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Speaker 1: So you just tell us here, I mean, just so

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Speaker 1: I'm going to give you the final word here, I

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Speaker 1: mean where does this go next? I don't mean just

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Speaker 1: for a creative five but overall, I mean you built

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Speaker 1: something cool, You've raised some good money. Obviously you got

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Speaker 1: a long way to go to sort of get up

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Speaker 1: to the heights that we've seen with other companies in

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Speaker 1: this space. But when you look at the foundation that

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Speaker 1: you have, you look at the adoption of AI and

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Speaker 1: AI adjacent technology.

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Speaker 2: What do you see as the future?

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Speaker 3: We see the future is they're going to be like

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Speaker 3: a very intelligent ad agents which pretty much can automate

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Speaker 3: everything along the performance marketing journey.

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Speaker 4: Right.

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Speaker 3: You can think of like the best teammates we specialized

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Speaker 3: in paid asks can take care of everything from like

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Speaker 3: the inspiration to decreation to the delivery and the final

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Speaker 3: automatician and they can do it continuously. So really we're

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Speaker 3: going to create like marketers, like brands from like the

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Speaker 3: manual tedious work and let them to focus more higher,

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Speaker 3: hire all their tasks right doing the designing, messaging, or

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Speaker 3: grow their business.

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Speaker 4: I think that's the vision we are in vision out

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Speaker 4: of thirty five.

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Speaker 6: We really appreciate your time today, both of you. Thank

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Speaker 6: you so very much. Good luck with all of that.

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Speaker 6: Please come back and let us know how all of

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Speaker 6: it is progressing. Jeffrey Katzenberg, founding partner of Wonder Code.

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Speaker 6: He's gonna go out and get some skincare in just

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Speaker 6: a second. And in and A co founder and CEO

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Speaker 6: of Creatify as well,