The Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) is negotiating for what it calls a “Tilly Tax” on AI-generated film characters as part of ongoing contract discussions. The proposal was reported by Bloomberg on March 28, 2026.
According to the head of the Hollywood actors’ union, organized labor is serving as “an important check on how the technology gets used” as AI adoption in the US outpaces regulatory efforts. The union leader emphasized that labor organizations are filling a crucial oversight role in AI implementation across industries.
The “Tilly Tax” represents SAG-AFTRA’s latest effort to address the growing use of artificial intelligence in film and television production. The tax would specifically target AI-generated characters, though the Bloomberg report does not specify the proposed rate structure or how revenues would be distributed.
The bargaining position comes as entertainment industry unions continue to grapple with AI’s impact on traditional acting roles and compensation structures. SAG-AFTRA’s approach suggests unions are moving beyond defensive positions to actively shape how AI technologies are monetized in creative industries.
The union has not announced a timeline for completing these contract negotiations or when the proposed AI character tax might take effect if agreed upon by studios and production companies.
