Residuals Flummox AI—and What SAG-AFTRA's Agreement Left Out
ChatGPT struggles to explain residuals; and the new union deal could use a touch up.
In my latest Puck article (click, then scroll down): What got left out of SAG-AFTRA’s tentative agreement, which is likely to be ratified when voting closes in less than 28 hours. (It only takes a majority.)
And, here’s a nugget that didn’t make it into Puck:
Are residuals too complicated for AI to understand? It looks that way. Last month, OpenAI, the company that’s revolutionized generative AI—and was recently the locus of unprecedented Silicon Valley boardroom drama—introduced a new capability toits subscription-based software: “You can now create custom versions of ChatGPT that combine instructions, extra knowledge, and any combination of skills,” the company’s website touts.
That sounded interesting, so I decided to see if I could disintermediate myself by creating a GPT (that’s what they call it) that understands and explains residuals. I uploaded the WGA’s 2020 collective bargaining agreement, called the MBA (for Minimum Basic Agreement, although that’s not its name anymore) and 2023 Memorandum of Agreement, as well as the last version of my residuals chart (2018, yes, I need to update it) and the 300 page revised manuscript-in-process of my book Entertainment Residuals: A Full-Color Guide.
I then asked my GPT “how are streaming video residuals calculated?” and waited eagerly. After a minute the answer appeared. But it was all useless generalities of the sort students spew out in exam essays when they don’t know the answer but have to say something. The GPT’s response ended by recommending exactly what I’d hope to avoid: “For precise and current information, it's important to refer to the latest agreements made by the respective guilds or unions.”
I tried again with “how are WGA streaming video residuals calculated for product made for streaming?” and got more generalities, followed by an irrelevant reference to the American Federation of Musicians and then something a bit more specific. More specific, yes, but also wrong: “For high-budget SVOD content, residuals are similar to those for free TV content.” As many union members know, this isn’t true at all. Then the answer veered into a couple brief mentions of SAG-AFTRA (also irrelevant) and a claim that a 2 percent gross residual applies after some unspecified period (wrong again).
I gave it one last try—"how are WGA streaming video residuals calculated for high budget SVOD product made for streaming?”—but still got the erroneous claim of a gross residual. And there was no mention at all of the WGA’s new bonus residual for top-performing streaming product. Seems like my job(s) are safe for now.