Abstract: The subject of this study is deepfake technology. Between 2017 and 2024, deepfake technology has evolved from experimental to an important tool for creating groundbreaking films that transform creativity, production, and audience engagement. Initially, its creative potential was limited due to technical capabilities. However, the development of artificial intelligence and deep fake technology has made it possible to change the age of actors, "resurrect" dead actors, and even create fully synthetic characters. At the same time, ethical issues arose, such as: violation of consent, displacement of jobs (which provoked strikes in Hollywood in 2023-2024). Integration with augmented and virtual reality further blurs the line between fact and fiction, creating the need for regulatory structures. This study argues that while deepfakes do open up new horizons in storytelling and accelerate production, their uncontrolled use can undermine artistic integrity and credibility. The research methodology is comprehensive. The authors apply the method of literature and source analysis, data collection, case analysis. An impact assessment is being conducted (the impact of deep fakes and AI technologies on creativity, the film industry, ethics issues, etc.). The study also uses the method of predicting the future and ethical analysis. The scientific novelty of the article lies in the analysis of the evolutionary trajectory of deepfakes technology, its impact on production and creativity (expanding the creative capabilities of producers and directors), ethical problems (labor conflicts, privacy issues and personal consent), integration of deepfakes with virtual (VR) and the augmented (AR) reality. The authors of the study conclude that it is necessary to develop new regulatory structures to preserve transparency and trust in media content, as well as the need to create a balance between maintaining artistic integrity and technical capabilities in the modern film industry.

Keywords: industry, balance, future, reality, ethics, shift, cinema, technology, artificial intelligence, deep fake