THE UNIVERSITY OF HONG KONG
FACULTY OF BUSINESS AND ECONOMICS
MSBA7033
Generative Artificial Intelligence Applications in Business
Dr. Dawei WANG
Individual Assignment I: Pika vs. Pixar
Deadline: Due at 9:29 AM (right before Class 5)
Scope: Use concepts and frameworks from Class 2 to Class 4 to answer this assignment.
Context
Background. Pika and Runway, emerging cloud platforms in the video creation sector, leverage
generative AI technology to transform simple prompts into videos. Pika is co-founded by Demi Guo
and Chenlin Meng, both former Stanford PhD students in artificial intelligence. Pika is rapidly gaining
attention in Silicon Valley, recently securing a substantial $55 million in startup funding.
Industry Trend. Generative AI has become a buzzword, particularly in creative industries. Pika and
Runway exemplify this trend with their AI models designed to "bring creativity to motion". However,
questions remain as to: Whose creativity are they enhancing? Is it that of professional animators or
the general public?
Technical Limitations. Despite the innovative approach, both platforms have their limitations. They
only support the creation of short videos or animations — a maximum of 3 seconds for Pika and 4
seconds for Runway. Additionally, the generation time (15 to 30 seconds) for these brief outputs is a
concern, especially when the results often require adjustments or complete re-dos, leading to
increased time and cost inefficiencies.
The Assignment. You are a consultant for Pixar, a renowned traditional animation studio. Your task
is to do some research on Pika and Runway, experiment with Runway (Pika is not publicly available
yet as of January, 2024) and evaluate the potential impact of Pika and Runway on Pixar’s business.
Are these platforms complementary, synergistic, competitive, or irrelevant to Pixar's operations? In
essence, will they pose a threat, offer a partnership opportunity, or have no significant impact on your
business model?
Questions
1. Pixar's Animation Process (1 mark): Outline the process of creating animations at a
traditional studio like Pixar. Highlight key stages in their animation production.
2. Target Audience of Pika and Runway (1 mark): Identify the primary target audience for
Pika and Runway. Who are the most likely users of these platforms?
3. Technology Behind Pika and Runway (1 mark): Determine whether Pika and Runway are
rule-based or machine learning-based models for generating animations. Discuss the
advantages of using machine-learning in animation creation.
4. Potential Threats of Pika to Pixar (2 marks): Examine how Pika could pose a threat to
Pixar. Identify specific areas within Pixar's animation process where this threat is most
significant.
5. Potential Opportunities of Pika for Pixar (2 marks): Explore how Pika could present
opportunities for Pixar. Pinpoint areas in Pixar's animation process where Pika could be
beneficial.
6. Pika's Neutral Impact on Pixar (2 marks): Analyze scenarios where Pika might have no
significant impact on Pixar. Discuss areas in the animation process where Pika's influence
could be negligible.
7. Conclusion (1 mark): Conclude by picking a stand on whether Pika is a threat, is an
opportunity or has no impact on traditional animation studios such as Pixar.
Deliverable
Assignment Deliverable: Submit a 2-page report addressing the above questions (do not copy and
paste question into the deliverable), adhering to the following format:
• Font: Use Helvetica font, size 11, double spacing.
• Margins: 2.54-cm margin on all sides of the document.
• Header: On the first page, include the assignment title, your name, and university ID.
• Page: Maximum 2 pages. DO NOT copy and paste question into the deliverable.
Note: Non-compliance with the specified format will result in a deduction of marks. Half a mark will be
deducted for each of the above points. Maximum 2 points can be deducted if all formatting points not
followed.