Blake Lively and Justin Baldoni have reached a comprehensive settlement in their legal dispute related to the 2024 film “It Ends With Us,” Reuters reported on May 4, 2026, bringing an end to months of highly publicized litigation between the actress and the film’s director.

Background of the Dispute

“It Ends With Us,” adapted from Colleen Hoover’s bestselling novel, was released in 2024 with Baldoni directing and Lively starring in the lead role. The film achieved commercial success at the box office, but tensions between the two parties gradually became public during and after production.

In early 2025, Lively filed a lawsuit against Baldoni alleging issues related to the working environment during filming. Baldoni subsequently filed counterclaims, arguing that Lively’s actions had damaged his professional reputation, and sought compensation. The legal battle intensified as both sides presented competing narratives about creative disagreements and mutual accusations.

Settlement Terms

According to court filings, the parties have reached a settlement agreement. The specific terms of the settlement were not disclosed publicly, which is standard practice in Hollywood legal disputes. Attorneys for both sides confirmed that the matter has been “resolved on terms satisfactory to both parties.”

Legal analysts note that such settlements typically involve confidentiality agreements and mutual releases of claims. For both parties, reaching a settlement means avoiding a potentially lengthy trial and the additional public scrutiny it would bring.

Industry Implications

The “It Ends With Us” legal dispute has been one of the most closely watched behind-the-scenes conflicts in Hollywood in recent years. The case has sparked broader industry discussions about on-set working conditions, power dynamics, and the relationship between actors and directors.

Industry analysts suggest that as Hollywood places increasing emphasis on workplace standards, such high-profile disputes are prompting studios and production companies to reassess their project management processes and conflict resolution mechanisms. Several Hollywood producers have indicated that such litigation will drive the industry toward more robust on-set behavioral guidelines.

Reactions

Neither Lively nor Baldoni issued immediate public statements following the settlement. However, sources close to both parties indicated that both are relieved to have concluded the dispute and are eager to refocus on their respective careers.

Lively is currently involved in multiple film and television projects, while Baldoni continues his work as a director and producer. Plans for an “It Ends With Us” sequel remain unclear.

Source: Reuters | The New York Times

The Academy of Motion Picture Arts and Sciences released updated Oscar eligibility rules last Friday, explicitly specifying for the first time that only acting “demonstrably performed by humans” and writing that “must be human-authored” can be nominated for an Academy Award.

The Academy described this rule change as a “substantive” modification to Oscar eligibility criteria. This marks the first time in the Academy’s history that acting and screenwriting have been explicitly required to be performed and created by humans.

Core Requirements of the New Rules

Under the updated eligibility requirements, the Academy has specified that performances must be “demonstrably performed by humans” and screenplays must be “human-authored.” This new rule comes as the use of AI technology in film production expands at an unprecedented pace.

However, the Academy did not issue a broad ban on AI use in films. For areas beyond acting and writing — such as visual effects, sound design, and other technical categories — the Academy stated that the use of AI tools “neither helps nor harms the chances of achieving a nomination.” The Academy emphasized: “When choosing which movie to award, the degree to which a human was at the heart of the creative authorship will be taken into account.”

Industry Context

In recent years, the application of AI in film and television production has drawn increasing attention. The late actor Val Kilmer (who died in 2025) is set to be recreated using AI technology to play a lead role in an upcoming film. Last year, London-based actor and comedian Eline van der Velden announced she had created an entirely fictional AI actor and made it “a global superstar.”

Two years ago, when the union representing Hollywood writers went on strike, a central issue in the dispute was film and TV studios using AI to write scripts.

Ongoing Legal Disputes

Meanwhile, Hollywood studios, actors, and writers have filed copyright infringement lawsuits against several AI companies, alleging that the training basis of AI models — the text, images, and video used to train large language models (LLMs) — infringes on human creators’ copyrights.

The Academy stated: “If questions arise regarding the aforementioned use of generative artificial intelligence, the Academy reserves the right to request more information about the nature of the use and human authorship.”

Analysts suggest that this new rule marks the traditional film industry’s first formal delineation of AI technology boundaries and could have far-reaching implications for AI applications across the entertainment industry.

Source: BBC News

The Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) has announced a tentative labor agreement with major film and television studios, ending prolonged negotiations over compensation levels, the use of AI technology, and working conditions. The deal brings much-needed stability and predictability to Hollywood’s entertainment industry.

According to union sources, the agreement covers several key issues: on compensation, it includes inflation-adjusted wage increases to ensure actors’ real income does not erode due to rising living costs; on AI technology use, the agreement sets clear restrictions on studios’ use of AI to generate actor likenesses and performances, requiring explicit consent before using any AI technology to replicate an actor’s likeness or voice; and on working conditions, the agreement improves regulations for long shooting hours and consecutive workdays.

SAG-AFTRA union leadership stated in a press release that the agreement protects the core interests of union members, particularly in the face of rapidly evolving AI technology, where actors’ fundamental rights have been safeguarded at the legal level. The union particularly emphasized the importance of including AI-related provisions in the agreement, viewing this as a critical measure to prevent technological abuse and protect the professional dignity of human performers.

Representatives of the major studio alliance also welcomed the agreement, saying it would pave the way for the restoration of normal order in film and television production. Prior to the deal, industry uncertainty had caused multiple significant projects to be delayed, having a significant negative impact on the broader entertainment industry.

Notably, the application of AI technology in the entertainment sector was one of the core points of contention in these negotiations. As AI-generated content technology becomes increasingly sophisticated, studios have sought greater freedom to use AI to reduce costs and improve production efficiency, while actors worry this could lead to mass job displacement and portrait rights violations. The final agreement strikes a balance between the two, allowing reasonable use of AI technology while protecting actors’ fundamental rights.

Industry analysts expect the deal to accelerate the restart of several postponed film and television projects, generating a positive economic impact on Hollywood. Additionally, the AI-related provisions in this agreement may serve as a reference template for other countries and unions in similar negotiations.

The tentative agreement still requires approval by a vote of union members before it can take effect officially. The union has indicated it will organize member review and voting on the agreement’s terms as soon as possible.

Source: The Hollywood Reporter

The Academy of Motion Picture Arts and Sciences (AMPAS) issued a landmark update to its awards eligibility rules on Friday, declaring that only acting performed by humans and writing authored by humans can be considered for Oscar nominations.

The Academy described the change as “substantive” — the first time in its history that it has explicitly required human performance and authorship for award consideration.

Key Requirements

Under the updated eligibility criteria:

• Acting awards: Only granted for performances “demonstrably performed by humans”
• Writing awards: Scripts “must be human-authored”

The Academy stated: “The Academy and each branch will judge the achievement, taking into account the degree to which a human was at the heart of the creative authorship when choosing which movie to award. If questions arise regarding the aforementioned use of generative artificial intelligence, the Academy reserves the right to request more information about the nature of the use and human authorship.”

Context and Motivation

The rule change comes amid rapid advances in AI technology within the film industry.

Late actor Val Kilmer (who died in 2025) is being recreated using AI technology for a lead role in an upcoming film. Last year, London-based actor and comedian Eline van der Velden claimed she had created “an entirely fake AI actor” in an attempt to make it “a global superstar.”

Two years ago, when the Hollywood writers’ union went on strike, one of the key issues was film and TV studios using AI to write scripts.

AI Tools in Other Areas Not Restricted

Notably, the Academy did not impose a blanket ban on AI use in filmmaking. For areas beyond acting and writing, the Academy clarified:

“AI tools neither help nor harm the chances of achieving a nomination.”

This means AI use in visual effects, sound, editing, and other production areas remains permitted. The Academy will evaluate each work “taking into account the degree to which a human was at the heart of the creative authorship.”

Industry Background

The foundation of all AI tools is large language models (LLMs), which are trained on text, images, and video created by humans over decades. Hollywood studios, actors, and authors are currently pursuing copyright infringement lawsuits against several AI companies.

Meanwhile, AI video generation tools have faced their own challenges — OpenAI recently shut down its Sora video-making app and cancelled a $1 billion deal with Disney.

This new rule is seen as a significant step by Hollywood to protect human creative workers in the AI era, setting a precedent for the global film industry.

Source: BBC News, Academy of Motion Picture Arts and Sciences

The Academy of Motion Picture Arts and Sciences has issued updated Oscar eligibility rules on Friday, specifying that only acting “demonstrably performed by humans” and writing that “must be human-authored” can be considered for Academy Award nominations.

The Academy described the requirements as a “substantive” change to its rules. This marks the first time the organization has explicitly mandated that acting and writing be performed by humans, reflecting growing concerns about the expanding use of AI tools in the film industry.

In recent months, there have been notable examples of AI technology being used to replace or recreate human work. Actor Val Kilmer, who died in 2025, is set to be recreated with AI technology for a lead role in an upcoming film. Last year, London-based actor and comedian Eline van der Velden said she had created “an entirely fake AI actor” designed to “become a global superstar.”

When the union representing Hollywood writers went on strike two years ago, a key issue was film and TV studios using AI to write scripts. The Academy’s new rule now provides institutional protection for writers and performers.

However, the Academy did not issue a blanket ban on AI use in filmmaking. In the updated rules, it stated that outside of acting and writing, if a filmmaker uses AI tools in their work, such “tools neither help nor harm the chances of achieving a nomination.”

“The Academy and each branch will judge the achievement, taking into account the degree to which a human was at the heart of the creative authorship when choosing which movie to award,” the organization added. “If questions arise regarding the aforementioned use of generative artificial intelligence, the Academy reserves the right to request more information about the nature of the use and human authorship.”

The rule change comes as Hollywood studios, actors, and authors are pursuing copyright infringement lawsuits against several AI companies, alleging that their training data violates the rights of human creators. The foundation of all AI tools — large language models (LLMs) — is built on text, images, and video created by humans over decades.

Notably, while the Academy has restricted AI in acting and writing, it has not rejected technology’s role in filmmaking more broadly. Computer-generated imagery (CGI) has been widely used in film production since the 1990s. CGI is generally considered a human-driven, manually crafted process, whereas AI tools are typically designed to automate the work entirely through simple prompts — a key distinction between the two approaches.

Source: BBC News, Reuters, Variety