The rapid integration of Artificial Intelligence (AI) into the domain of visual entertainment has redefined the boundaries of creativity, storytelling, and digital realism. This review paper explores the transformative yet contentious role of AI technologies in reshaping the modern entertainment landscape, from the emergence of deepfakes that challenge authenticity to the rise of generative systems that create immersive dreamlike visual experiences. The study emphasizes the dual nature of AI’s influence—serving as both an enabler of artistic innovation and a source of profound ethical concern. By examining current advancements in generative models, deep learning-based content synthesis, and algorithmic artistry, this work highlights how technological progress has blurred the distinction between genuine creation and synthetic fabrication. Furthermore, the review identifies prevailing ethical frameworks addressing issues of consent, ownership, and truth manipulation within visual media ecosystems. Trends in policy development, media accountability, and digital governance are also analyzed to assess how societies are responding to these evolving challenges. The findings suggest that while AI-driven creativity opens new frontiers for visual expression, it simultaneously necessitates a principled approach to transparency, responsibility, and human oversight. The paper concludes by underscoring the importance of aligning innovation with ethical integrity to ensure that the future of AI-generated entertainment remains both inspiring and trustworthy.

Keywords: Artificial Intelligence Ethics, Deepfakes, Generative Visual Media, Digital Storytelling, Creative Integrity, Responsible Innovation, Algorithmic Artistry