Japanese animation studio DLE Inc. announced plans to establish an AI-powered content production facility, betting that artificial intelligence can help it capture a larger share of the outsourcing market.
The Tokyo-based company, known for the Eagle Talon series, will invest ¥182 million ($1.26 million) to launch the AI studio on August 1, targeting clients seeking faster and cheaper animation production. DLE plans to start with a five-person team capable of producing 100 short videos monthly.
The move represents a strategic shift for DLE, which has traditionally focused on developing its own intellectual property and participating in production committees. The company now aims to capitalize on what it describes as a supply-demand imbalance in Japan’s animation industry, where hand-drawn production methods struggle to meet rising content demand.
Major studios including Toei Animation have recently invested billions of yen in AI technology partnerships, suggesting industry-wide momentum toward automation. However, recent AI-assisted anime projects have faced negative audience reactions, raising questions about market acceptance.
DLE’s modest investment pales compared to larger competitors’ AI initiatives. The company also carries baggage from past financial irregularities, having been fined ¥135.4 million in 2019 for reporting inflated sales from falsified transactions.
The studio targets creating 100 new AI characters by March 2027, though it remains unclear whether this relatively small-scale operation can meaningfully address industry-wide production bottlenecks.
