Oscar-winning filmmaker Guillermo del Toro issued a stark warning about the future of cinema at the BFI America dinner held in Hollywood on Monday, 16 June 2025, cautioning that the film industry stands 'on the verge of image illiteracy' as artificial intelligence and corporate consolidation reshape the creative landscape. Del Toro was speaking at the event to mark his selection for the prestigious BFI Fellowship.

The Warning from Hollywood

Addressing an industry gathering at Mother Wolf restaurant in Hollywood, del Toro — known for acclaimed works including 'Pan's Labyrinth', 'Hellboy', 'The Shape of Water', and last year's 'Frankenstein' — did not mince words about what he sees as an existential threat to artistic expression. 'We are on the verge of image illiteracy. We are on the verge of cinema illiteracy,' he told the assembled crowd, according to reports.

The director argued that the human impulse to create images is as ancient as cave paintings, and that this primal connection between people and visual art is now under serious threat. 'The agreement between man and image is sacred,' he said, adding that while art has historically served to unite people, 'we are in a time when that is in danger.'

Del Toro on AI: 'Natural Stupidity'

Del Toro reserved particular criticism for artificial intelligence, dismissively labelling it a form of 'natural stupidity'. He challenged the notion that algorithmically generated visuals can fulfil the deeper purpose of art. 'We are told images can be generated by artificial means. The existence of an image is not just to be there. It is to connect us, to make us feel beauty,' he said.

His remarks come as the global film industry continues to grapple with the rapid proliferation of AI-generated content, which critics argue risks devaluing human craftsmanship and displacing creative workers. This is not the first time a major filmmaker has raised the alarm — directors including Christopher Nolan and James Cameron have previously voiced concerns about unchecked AI use in filmmaking, though their positions have varied in nuance.

Political Polarisation and Creative Freedom

Beyond AI, del Toro also pointed to the rising tide of political polarisation as a compounding threat to creative freedom worldwide. He stressed that cinema's power to bridge divides is precisely what makes it a target in an era of ideological entrenchment. The BFI Fellowship — one of the most distinguished honours in world cinema — placed del Toro in a room of peers who, by his account, share these anxieties about the direction of the industry.

Context: A Industry at a Crossroads

The past several years have been turbulent for Hollywood, with streaming disruption, the 2023 writers' and actors' strikes — which centred partly on AI protections — and ongoing business consolidation among major studios all reshaping the economics of filmmaking. Del Toro's remarks at the BFI dinner reflect a broader anxiety among veteran filmmakers that the cultural and commercial pressures converging on the industry could permanently alter what cinema is and who gets to make it. How the industry responds to these twin pressures of technology and consolidation will likely define its next chapter.