Jason Blum thinks Hollywood needs to "embrace" AI technology.

The 56-year-old film producer is convinced that AI is "here to stay" - but he's also warned that the technology must be used in a way that's "ethically and legally" correct.

He told Variety: "Whatever you feel about AI, it's here to stay.

"It's very important to use it ethically and legally, and for the studios and the guilds to protect the copyright of the artists. But if we in Hollywood stick our heads in the sand and don't use it at all, we're going to cede content creation to other people.

"The consumer does not care if what they're looking at is AI. We've got to embrace it, but ethically and legally."

Jason has enjoyed huge success with his Blumhouse Productions firm, which is best known for horror franchises such as Paranormal Activity, Insidious, The Purge, and Halloween.

Blumhouse is often credited with pairing small budgets with big studio marketing, and Jason feels proud of what he's managed to achieve with his company.

The Blumhouse founder said: "I thought the ideal thing would be to make movies independently and have them released by studios. No one was doing that at the time, and that's what Paranormal Activity was.

"Then we came very fast out of the gate with Insidious, Sinister and then The Purge. All examples of super low-budget indie movies released by studios.

"It's still in the DNA of Hollywood that if you have success, you need to then make way more expensive movies. Whether you're a producer, an actor -- especially if you're a director. You had a hit with a $5 million movie at Sundance? You should do a $20 million movie for Searchlight! That never made any sense to me.

"I've made many mistakes in my career, but one thing I did right was not get tempted by this notion of making a more expensive movie after you had a huge hit."

Jason resisted the temptation to change his approach, despite his early successes.

He explained: "I didn't gravitate towards making a $60 million version of Dracula after Paranormal Activity -- I made a $980,000 horror movie called Insidious.

"I was able to take all the benefits of low-budget filmmaking, which is just creative control. At Blumhouse, if you see a voice or a texture that runs through our movies, it's what our low budgets allow: louder voices from the directors. The edges of our movies are much less sanded down than the big-budget movies.

"The DPs, production designers and all the hardworking people who do craftwork around the movie won't like to hear this, but I fundamentally believe that you can have a movie that doesn't look good, isn't lit well, but if the audience is really into the characters and what they're saying, the movie can work."