Disney Criticized for its Approach to AI and AR by Activist Investor Blackwells Capital

On Monday, the activist investment firm Blackwells Capital levied criticism at The Walt Disney Company for what they regard as a lackluster approach to artificial intelligence (AI) and augmented reality (AR) technologies. The firm contends that Disney's technological strategy is marked by mediocrity, potentially impairing the media conglomerate's ability to maintain a competitive edge.

Call for a Unified Chief Technology Officer

Blackwells Capital underscored that Disney is dealing with significant tech-related challenges which seem to place it behind its rivals. The investor advocates for the appointment of a single chief technology officer (CTO) to spearhead technological adoption and innovation across Disney's diverse business units.

Providing a structure for comparison, Blackwells Capital pointed to companies like Netflix and Amazon, each having a centralized CTO role that governs technology across their respective operations. Disney, however, currently operates with separate CTOs for its entertainment division and its parks, experiences, and products division—a situation Blackwells views as fragmented and encumbered by bureaucratic layers.

Disney's Tech Evolution and the Proxy Battle

The ongoing proxy fight Blackwells is engaged in aims to earn board seats at Disney, pushing for a strategic reorientation towards embracing AI and AR technologies comprehensively. They suggest such technological advancements could improve park experiences with innovations like interactive AR attractions and optimize crowd management with AI.

Additionally, Blackwells urges Disney to bump up its research and development expenditure to stay competitive with other industry players. Disney, according to the investor, has underspent in this critical area.

The firm goes as far as stating that Disney's next CEO should have deep technological expertise to ensure the company does not fall behind in digital and technological advancements. As Disney prepares for its annual meeting on April 3, this critique adds another layer to the ongoing discussions around the company's strategic direction.

Disney, Blackwells, AI, AR, Technology, Investment