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‘Merry the Christmas Witch’ Director Estimated Movie Would Cost $80 Million — but Says With AI, He Made It for $1.5 Million (EXCLUSIVE)

‘Merry the Christmas Witch’ Director Estimated Movie Would Cost $80 Million — but Says With AI, He Made It for $1.5 Million (EXCLUSIVE)

variety.com 12.10.2026 18:37 4 views
AI has come for docudramas, for summer blockbusters, even for adaptations of books about farts. What’s left other than holiday films? Enter “Merry the Christmas Witch.” The film focuses on Merry, the first witch born on

AI has come for docudramas, for summer blockbusters, even for adaptations of books about farts. What’s left other than holiday films? Enter “Merry the Christmas Witch.” The film focuses on Merry, the first witch born on Christmas Day, who must defeat a coven of evil witches that has kidnapped Santa Claus in a bid to destroy Christmas.

The project is based on a 2012 children’s book by Bobbi Hess, a 70-year-old New Orleans-based technical writer who, in her own words, called the adaptation “a perfect marriage” of subject and technology. Walsh came across Hess’ book in 2014 during a Los Angeles meeting with her late husband, who gave Walsh a copy of her book. Walsh tells Variety he loved the idea of a Christmas witch and was eager to adapt the title.

But when he sat down to figure out the budget, the total cost seemed unwieldy: $80 million, a cost studios would balk at for “an unknown property,” Walsh said. Instead, using AI, he managed to produce the final two-hour film for $1.5 million, perhaps serving as a test case for the types of projects AI can help make. Human actors were hired to record the script and help guide how the characters should move and sound, but Walsh ultimately opted for AI-generated voices due to syncing issues with the technology.

Instead, Walsh — with the help of the AI studio Phatty Acid, which worked on the film — used tools such as ElevenLabs’ voice generator and video generators Seedance and Nanobanana to bring them to life. With roughly 50 different people working on the film throughout its 10-month production cycle, the film resembled a “hybrid AI production,” Walsh said, one he believes could be a new standard of making projects traditionally hampered by large budgets. Even as AI films like “Gods Don’t Give Gifts” try to compete for attention at cinemas, outrage continues to swirl whenever a film or studio reveals the technology was used at any level. (The film currently has no distributor, though a spokesperson said “optimistic” conversations were underway with “a few different companies.”) In Walsh’s view, there’s room for everything, and he’s hopeful people can look beyond the technology’s use.

It’s almost like when you’re watching animation, you’re not thinking you’re watching animated characters on that kind of basis.” Even if audiences do reject it and distributors pass on picking up the film, Walsh remains undeterred. He is already working on another AI-generated picture, and he said he and Hess — who says she has “no issues at all with AI” — have remained in touch for future stories centered around the Christmas witch. It would have just sat in a screenplay never made, and so I have no regrets of taking that chance.”

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