[Edaily Reporter YUN GI BACK ] Although feature films utilizing artificial intelligence (AI) are being released in theaters one after another, their box office performance has fallen short of expectations. While these films have dramatically reduced production costs and time, thereby lowering the barrier to entry for film production, they are struggling to draw audiences to theaters. Whether AI-powered films, which have improved production efficiency, can also achieve profitability has emerged as a new challenge.

◇Production Costs Cut, but Box Office Performance Is a Virtual Disaster
According to the Korean Film Council’s integrated computer network on the 26th, the sci-fi action film “Steel Ray,” which opened on the 21st, had attracted only 4,354 cumulative viewers as of the 25th. Cumulative box office revenue stood at 43.71 million won.
“Steelray” is a 90-minute feature film completed in about six months using generative AI. Its production budget was less than 1 billion won. It garnered attention for bringing the sci-fi genre—which typically requires significant capital and manpower—to life at a relatively low cost.
However, its box office performance has been dismal. After deducting 10% value-added tax (approximately 4.37 million won) and 3% for the Film Development Fund (approximately 1.31 million won) from the 43.71 million won in revenue, approximately 38.03 million won remains. If this is split equally between the theater and the investment and distribution company, the latter’s share amounts to only about 19 million won. Even this amount does not go entirely to the production company. Despite the significant reduction in production costs, it is difficult to recoup the investment through theater revenue alone.
Other AI films face a similar situation. “I Am Popo,” released last May, recorded cumulative revenue of just 9.87 million won (with a cumulative audience of 940 people). “The Man in Hanbok” also recorded cumulative revenue of 5.74 million won (with a cumulative audience of 652). Applying the same distribution formula, the amounts going to the investment and distribution companies would be approximately 4.3 million won and 2.5 million won, respectively.
These results demonstrate that reducing production costs does not necessarily translate into box office success. A film industry insider stated, “While AI can reduce the costs and manpower required to create backgrounds and visual effects, it does not guarantee the quality of the story,” adding, “Apart from production costs, the marketing and distribution expenses required for a theatrical release remain a burden.”

◇ Struggling at the Box Office Abroad as Well… Proving Profitability Remains a Challenge
The situation is similar in overseas theaters. The Chinese AI feature film “Sanshingdui: Future and Past,” which had a production budget of over 10 million yuan (approximately 2 billion won), is struggling at the box office. According to the Chinese movie ticketing platform Maoyan, the film’s cumulative revenue as of noon on the 26th stood at just 1.192 million yuan (approximately 240 million won), despite its release on the 23rd. Notably, on the 24th and 25th, the average number of viewers per screening was only two.
Despite these limited box office results, AI film production continues. The sci-fi feature film “Raphael” is set to premiere on November 25. The film, which was created by a production team of just seven people, depicts a futuristic city and features large-scale visual effects. It is drawing attention for having completed scenes—which traditionally required a large workforce and significant capital—with a small production team. In December, the virtual thriller “GenInfluencer,” centered on AI idols, will hit theaters. Invited to this year’s Cannes Series Festival, the film is notable for its attempt to expand AI technology beyond video production into virtual artists and intellectual property (IP).
In this way, AI is lowering the barriers to entry for the sci-fi and fantasy genres—which typically carry high production costs—and providing new opportunities for emerging creators. However, it is difficult to establish a sustainable revenue model based solely on the advantage of producing films at a lower cost. This is because, at the box office, a film’s appeal—whether or not it uses AI technology—is what ultimately determines its success, not the technology itself.
Ultimately, the hurdle AI films must overcome is market viability, not production technology. An official from a film distribution company stated, “We are entering an era where anyone can make a movie at a low cost, but creating films that audiences actually want to see remains a separate challenge,” adding, “If AI has begun to change the formula for film production, now is the time for it to prove its competitiveness at the box office as well.”