Lionsgate shares fell to a four-month low after activist investor Anson Funds urged the studio to adopt a more ambitious artificial intelligence strategy. The dispute matters because investors increasingly view entertainment companies through the lens of whether AI will strengthen their business or leave them vulnerable to lower-cost rivals.

The stock closed at $11.73 on Wednesday, down 1% after falling 4% the previous day, although it remains 28% higher this year and 13% lower over the past month. Anson, one of Lionsgate’s five largest independent shareholders since 2024, says existing AI efforts are insufficient; Lionsgate has renewed a deal with Runway, hired its first Chief AI Officer and said AI could save tens of millions of dollars annually. The company has a library of about 20,000 film and television titles that generated more than $1 billion in its latest fiscal year.