Disney Establishes New Unit for AI and Augmented Reality Integration

Walt Disney Co. (NYSE:DIS) has established a new business unit dedicated to integrating artificial intelligence (AI) and augmented reality technologies across various divisions, including film, television, and theme parks. The Technology Activation Office, led by Jamie Voris, aims to leverage advancements in AI and extended reality (XR) to enhance consumer experiences and creative processes within the company.

Disney Entertainment Co-Chair Alan Bergman emphasized the importance of these technologies, stating that significant advancements necessitate Disney's exploration of opportunities and management of potential risks. Bergman noted that the new unit will not centralize technology projects but will ensure they align with Disney's overall strategy.

This initiative follows Disney's formation of a task force to explore AI applications across the conglomerate. Disney's divisions are actively investigating areas such as augmented reality (AR), virtual reality (VR), and mixed reality that blends digital and physical worlds.

Disney is developing expertise to capitalize on new technologies. Kyle Laughlin, who has expertise in AR, VR, and AI, returned to Disney in March as Senior Vice President of Research and Development for Walt Disney Imagineering. Laughlin previously left to lead Amazon's (NASDAQ:AMZN) Alexa Gadgets division in 2019.

As technology companies like Meta (NASDAQ:META) and Snap launch new AR/VR headsets, Disney is forming a team to leverage these technologies for theme parks and home entertainment. Although Meta holds a dominant market share in AR/VR headsets, competition is intensifying with the entry of players like Sony (NYSE:SONY), Apple, and ByteDance into the market.