Disney just revealed its AI strategy, and I love it

By Robert Niles: What are Disney's plans for AI? A Wall Street analysts that question in Disney's quarterly earnings call this morning. And I loved the response.Disney CEO Josh D'Amaro and CFO Hugh Johnston both responded to the question. D'Amaro talked about Disney's long-time use of technology in its business. Disney has been automating the production of entertainment long before "AI" became a Wall Street buzzword. Heck, Disney was creating mechanical automation projections long before many of today's Wall Street analysts were born. Just think about the automated animals that have been entertaining guests on the Jungle Cruise since 1955. Disney has been using digital automation for years, too. From the original TRON to staffing management in its theme parks, Disney's IT teams have been writing programs to replace pencil pushing in everything from animation to accounting. Automated pattern matching and replication is nothing new for Disney. "We've got a lot of work going on to develop a hyper-personalized recommendation engine across Disney+ and ESPN, and then we're implementing AI to enhance our ad-targeting capabilities, letting our partners develop and execute truly dynamic brand messaging," D'Amaro said, to further feed Wall Street's desire for companies to jump on the AI bandwagon.Let's acknowledge that many Wall Street analysts are vultures, and much of what passes for analysis in the stock market is just "pump and dump." Analysts love to hear companies commit to slashing workforces and automating work, because that boosts short-term profits and allows investment firms to issue "buy" recommendations on companies whose stock they soon will be selling at a peak, just before the job cuts and slopping automation cause revenue to crash.Johnston then jumped in, concluding with this gem:"We do see our Experiences business as well positioned structurally in a world of rising AI driven content. We think it may end up increasing even more the values consumers place on authentic, real-life experiences with those that they are close to, like we deliver across the parks and resorts every day."Brilliant. In a world ever more filled with AI slop, Disney's business strategy is to deliver authentic, human-driven experiences as an alternative.The problem with generative AI is that it enables the creation of so much mediocre content that people simply quit reading, watching, and listening as a result. That is an existential threat to entertainment companies (and news websites). The industry needs to find ways to cut through the slop and connect with the public before more people turn away from their products.Disney is wise to remain, as D'Amaro said, "committed to implementing AI in a way that keeps human creativity at the center of everything that we do, and of course, respects creators and the tremendous value of our own intellectual property."Disney beat analysts' expectations today, and the company's stock price soared. So long as Disney continues to make the money that Wall Street wants, the company can keep thumbing its nose to analysts over the way that it makes that cash.For my weekly update of Disney and theme park news, please sign up for Theme Park Insider's weekend newsletter.