On its 20th anniversary, YouTube is no longer the experimental video platform it once was. With over 2.7 billion users worldwide, the platform has emerged as the leading U.S. media company, poised to surpass Disney in annual media revenue for the first time. According to Nielsen, YouTube captured 13.4% of U.S. viewership in July 2025, far ahead of Disney’s 9.4% share. This milestone reflects how deeply YouTube has reshaped how people consume video content in the digital age.

AI at the Core of YouTube’s Growth

At the annual Made on YouTube event, CEO Neal Mohan outlined how artificial intelligence is driving YouTube’s evolution. Far from replacing creators, Mohan emphasized that AI should be viewed as a partner, not a competitor. “These are tools, and really just that,” he said. “No company, studio, or algorithm will own the future of entertainment.”

YouTube unveiled more than 30 new tools in 2025, triple the number from last year. Most of them are AI-powered, designed to simplify production, boost creativity, and help creators scale their content faster. Features include:

• AI-generated video clips for audio-only podcasts.
• Smart editing tools that can automatically assemble raw clips into a rough cut.
• Shopping link integration that embeds products directly into videos.
• Speech-to-song AI that turns spoken words into music.

YouTube as a Sustainable Career Path

Mohan stressed that video creation on YouTube is now a viable and sustainable career path. The platform has paid out over $100 billion to creators in just four years. Many YouTubers have reinvested their earnings into professional studios, rivaling Hollywood in both scale and quality. Creators such as Dua Lipa, Mark Rober, Smosh, and Brandon B were highlighted during the event, demonstrating how digital personalities are replacing traditional TV stars in terms of cultural influence and audience reach.

For artists like Dua Lipa, YouTube has become more than a streaming platform—it’s a space for authentic fan engagement. The integration of AI tools could deepen this connection by enabling innovative, interactive content formats.

Beating Disney at Its Own Game

The rise of YouTube represents a dramatic shift in the entertainment landscape. Once dominated by traditional players like Disney, the industry is now shaped by tech-driven platforms. Analysts predict that YouTube’s annual revenue will soon surpass Disney’s $60 billion mark, cementing its role as the new powerhouse of media. With Alphabet’s financial backing and expertise in AI research, YouTube is better positioned than any competitor to lead this transformation.

AI’s Role in the Future of Entertainment

The AI-powered tools showcased at the event reflect a larger trend: AI in content creation is not about replacement but about empowerment. By accelerating the creative process, AI allows creators to focus more on storytelling and building connections with audiences. This approach aligns with Mohan’s belief that “AI is the biggest unlock in creative history, but it will always serve people, not replace them.”

Final Thoughts

In just two decades, YouTube has transformed from a site of amateur clips to the world’s largest entertainment hub. With AI as its engine, the platform is not only shaping careers for millions of creators but also redefining the future of global media. As YouTube outpaces Disney and sets new industry standards, one thing is clear: the next era of entertainment will be built on a foundation where creators and AI work hand-in-hand.