Artificial intelligence (AI) is beginning to disrupt parts of Cebu’s animation industry, but growing demand for traditional hand-drawn anime in Japan could open new opportunities for Filipino artists, according to an industry leader.
Speaking at SunStar Cebu’s Beyond the Headlines, Lawrence Panganiban of the Cebu Creative Entertainment Council said some Cebu-based studios have already lost low-end animation projects as foreign clients shift to AI-generated tools.
“The lower-end bracket is already taken over by AI,” Panganiban said, noting that small schools and organizations in the United States that previously outsourced simple educational animations to the Philippines are now using automated platforms instead.
Opportunities in Japan
Despite the disruption, he said opportunities remain strong in Japan’s anime industry, where hand-drawn animation continues to dominate and AI-generated visuals are often rejected by consumers.
“AI is heavily frowned upon in anime production in Japan,” he said. “The consumer base can tell immediately if something is AI-generated, and they hate it.”
Panganiban cited a recent incident involving a Japanese anime studio that reportedly faced backlash after viewers discovered an AI-generated background asset in one of its productions, forcing the company to apologize and replace the image with a hand-drawn version.
He said this creates a potential opening for Cebuano artists as Japanese studios continue to look for skilled animators trained in traditional production techniques. According to Panganiban, the Philippines’ animation education system remains heavily focused on Western production methods despite rising opportunities in Japan.
“All of our animation training right now is taught in the Western medium. But the bigger opportunity for Cebu is Japan,” he said.
Partnership with schools
To address the gap, the Cebu Creative Entertainment Council has started discussions with academic institutions, including the University of San Carlos, University of the Philippines Diliman, University of the Philippines Cebu and the Technical Education and Skills Development Authority to explore programs focused on Japanese and Eastern-style animation.
Panganiban said Japanese animation follows a very different philosophy, workflow and technical process compared with Western studios, requiring specialized training. He added that Cebu has several advantages that could help attract Japanese projects, including its proximity to Japan, minimal time difference and a growing pool of young artists interested in anime production.
The Philippines has long contributed subcontracted work for major international studios linked to companies such as Disney, Warner Bros. and Hanna-Barbera, although much of this work remains largely unknown to the public.
Panganiban, however, said the country still needs significant upskilling to become more globally competitive. “There are stellar exceptions and internationally competitive artists already here, but in general we still need more exposure and training,” he said.
UN-backed mission
Meanwhile, a Cebu-led delegation will travel to Japan on July 14 and 15 for a SEA Creators Meet-up mission backed by the United Nations Industrial Development Organization to pursue partnerships and investment opportunities in the anime and gaming sectors.
The mission, hosted by Unido ITPO Tokyo, will include animation studios, game developers and businesses interested in entering the creative industry. “This is a rare opportunity for us to engage with the Japanese in a deeper manner with the support of the United Nations,” Panganiban said.
