Lionsgate, a leading Hollywood TV and film studio, has appointed Katheleen Grace as its first chief AI officer, signaling a stronger focus on artificial intelligence within the company.

Grace previously served as chief strategy officer at AI company Vermillio, which developed a platform to license and protect intellectual property and likenesses by enabling creatives to track, authenticate, and receive compensation for the use of their work in AI models. In her new role at Lionsgate, she will lead the studio’s AI strategy and implementation, reporting directly to CEO Jon Feltheimer.

Her responsibilities will include providing tools to support filmmakers creatively, improving efficiencies in production, marketing, distribution, and administrative operations, and safeguarding the studio’s intellectual property and talent interests.

Before Vermillio, Grace led the digital studio New Form, where she developed 43 pilots and sold 23 series to networks such as TBS, Freeform, Quibi, and Refinery29.

During Lionsgate’s earnings call, CEO Jon Feltheimer highlighted Grace’s strong expertise in AI and emphasized the importance of integrating AI across all areas of the business. He also stressed the studio’s commitment to protecting talent in the evolving AI landscape, noting Grace’s experience with Vermillio as a key asset in this effort.

Lionsgate, known for franchises like The Hunger Games and John Wick, recently made a pioneering deal with generative AI startup Runway to train a custom AI model using its content library to aid content creation. The company described its relationship with Runway as strong and ongoing, with Grace set to lead future discussions and potential partnerships with major AI firms.

Vice Chairman Michael Burns shared that Lionsgate is already using AI in various ways, including scheduling FAST channels and enhancing postproduction effects, such as on the series Spartacus. The studio also plans to expand AI use this year, particularly in script revisions and technical operations, while remaining discreet about any original content creation involving AI.

In its fiscal year 2026 third quarter, Lionsgate reported $724.3 million in revenue, driven by a 35% year-over-year increase in motion picture revenue to $421 million, fueled by releases like The Housemaid and Now You See Me: Now You Don’t. Television production revenue declined to $303.1 million with a segment profit of $55.7 million. The studio’s library revenue reached a record $1.05 billion, up 10% year-over-year.

Analyst Peter Supino from Wolfe Research expressed optimism about Lionsgate’s upcoming slate for fiscal years 2027 and 2028, highlighting the success of The Housemaid as a model for leveraging established IP with mid-budget production and franchise potential. He noted that management now has clear plans for two sequels, further reducing risk for the studio’s future projects.

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