No Actors, No Sets, No Problem? Spain’s AI Films Push Boundaries and Budgets – But at What Cost?

Spain Pushes Forward with AI in Film and TV While Balancing Innovation and Regulation

Spain is increasing its role in using artificial intelligence within film and television, seeking to lead not only in creative applications but also in setting legal standards.

This ambition is reflected in projects like “The Great Reset”, an AI-driven sci-fi thriller showcased at the 2025 Berlin International Film Festival.

Directed by Daniel H. Torrado, the film relies heavily on AI for visuals and post-production, removing the need for physical actors or sets, while still maintaining close human control over the story and artistic decisions.

Can AI Save Costs and Boost Creativity in Smaller Industries?

Spain’s embrace of AI comes amid debates about the technology’s impact on the entertainment industry worldwide.

Following the European Union’s approval of the AI Act, Spain became one of the first European countries to approve a draft law regulating AI in March 2025.

This law requires clear labelling of AI-generated content and includes penalties up to €35 million for misrepresentation, aiming to protect audiences and creators.

Across the Atlantic, concerns remain high among Hollywood creatives.

Just a week after Spain’s draft law, 400 industry professionals signed a letter warning the US government about copyright risks related to AI training on copyrighted works, pushing back against tech giants OpenAI and Google.

At the same time, prominent figures like James Cameron have suggested AI could halve production costs on big-budget films.

Netflix CEO Ted Sarandos responded optimistically, hoping AI could also improve film quality by 10 percent.

For a smaller industry like Spain’s, these technological advances are particularly meaningful.

Beatriz Pérez de Vargas, director of the AI documentary “Alter Ego, the Invisible Intelligence” for public broadcaster RTVE, notes,

“Technological advances are a welcome and important boost for an industry accustomed to fighting against giants, like high production budgets and excessive bureaucracy.”

Why Human Oversight Remains Vital Despite AI Tools

Daniel H. Torrado, who directed “The Great Reset”, agrees that AI offers vital support to creators facing financial and production challenges.

Daniel H. Torrado is an award-winning independent director and producer with over two decades of experience across diverse film genres.

He explains that his film “would have had unaffordable costs and production times” without AI.

“AI allowed us to simulate complex decisions early on and experiment without the budgetary risk that often paralyzes many independent creators.”

Yet, Torrado stresses,

“human oversight was constant. Every artistic, narrative and emotional decision went through my hands. AI was a powerful tool, not a substitute for the creator.”

This balance between technology and creativity is echoed by director Paco Torres, who trains organisations in AI use.

Paco Torres is an internationally acclaimed fiction and commercial director with over two decades of experience, celebrated for his award-winning films like "The Rattle of Benghazi" and being selected by Lars Von Trier for his feature film project.

He says,

“We need to embrace it, but it cannot replace art. We cannot lose artists, the white paper, the creation from nothing, the emotions, the human interactions, the imperfection … We need to fail, to not be perfect — this is important because it’s how we get emotion.”

How Regulation Could Shape Spain’s AI Future

Regulating AI presents challenges.

José Enrique Lozano, who runs an AI and big data master’s programme at Madrid’s School of Cinematography and Audiovisual (ECAM), highlights the delicate balance Spain must strike.

“If we want to protect ourselves from artificial intelligence to maintain our status quo … Spain and Europe need to be more aggressive and make much more progress in regulating artificial intelligence. On the other hand, I think the more we regulate, the more we’ll fall behind.”

This tension reflects a wider uncertainty about how far regulation should go without stifling innovation, a debate that will likely shape Spain’s evolving relationship with AI in creative industries.

Spanish AI Innovations Gain Global Attention

Spanish AI tools are already influencing international projects.

The film “Here”, directed by Robert Zemeckis, used Spanish-developed software like the AI-powered upscaler Magnific to enhance over 20 scenes, allowing VFX artists to spend more time on creativity rather than technical details.

The film also featured extensive AI face-swapping technology for actor de-aging, with real-time models providing instant visual feedback on set.

Meanwhile, Spanish companies like Freepik are working on more advanced AI-powered video editing suites capable of compiling clips, adding sound, and creating full-length videos, moving beyond simple AI-generated snippets.

Spain’s television sector is also quietly integrating AI into everyday workflows, using it for generating text and graphics or cataloguing historical archives.

Experimental projects such as the VR news show “Telediario” demonstrate the creative potential of generative AI on a smaller, non-commercial scale.

AI as a Tool to Enhance Storytelling Not Replace It

As Torrado puts it,

“Artificial intelligence doesn’t replace artistic vision or human creativity. It allows filmmakers to focus on what truly matters: telling stories that move and connect with the audience.”

This view captures the cautious optimism within Spain’s media industry as it navigates the evolving role of AI in storytelling.