Google Veo 3 Impact: What NZ Businesses Need to Know

Derrick Edward
6 days ago
4 min read

Google just released Veo 3, and the world's having a proper debate about it. From Silicon Valley boardrooms to creative studios worldwide, everyone's trying to figure out what this AI video generator actually means.

We've dug through the global discourse to give you the straight story, what's working, what's concerning people, and what you should actually know.

What Veo 3 Actually Does

Veo 3 generates videos with matching audio from text prompts. Not just silent clips, but full videos with dialogue, sound effects, and background music.

Real capabilities:

Creates up to 2-minute videos from detailed text descriptions
Generates synchronised audio automatically
Offers professional camera controls (pans, zooms, angle changes)
Handles complex narrative-driven prompts with surprising accuracy

Current limitations:

Costs 150 credits per video generation ($249.99/month subscription)
Takes 2-3 minutes to generate each video
Sometimes produces videos without audio or adds unintended subtitles
Only available to US users with Google AI Ultra subscriptions (for now)

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The Global Reaction: What People Are Actually Saying

The Excitement

Healthcare professionals are particularly impressed. One noted on LinkedIn that "the fidelity is mind-blowing" and highlighted how it could transform patient education by showing medical concepts visually rather than just explaining them.

Content creators are amazed by the cinematic capabilities. The ability to specify camera movements and create professional-grade cinematography without traditional equipment has filmmakers declaring this "the future of AI video creation."

Educators and small businesses see democratisation opportunities, by creating professional content without expensive equipment, large crews, or extensive technical expertise.

The Concerns

Deepfakes and misinformation are front of mind. Social media users have shared alarming examples of AI-generated news anchors delivering fabricated stories.

Creative industry disruption is causing anxiety. A 2024 Animation Guild study predicted over 100,000 jobs in film, television, and animation could be affected by AI technologies by 2026. Veo 3's capabilities have intensified these concerns.

Cultural homogenisation worries artists. Critics point out that Veo 3 repeatedly generates the same dad joke about a "Shih Tzu-dini," raising questions about whether AI systems might promote certain cultural perspectives while marginalising others.

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The Technical Reality Check

What's Impressive:

Professional creators report that Veo 3 can translate detailed scene descriptions into cohesive video clips that maintain visual and audio consistency. The system's ability to interpret complex, narrative-driven prompts has particularly impressed users.

What's Not Working Yet:

Multiple reports indicate quality inconsistencies when prompts venture into unfamiliar territory. The system tends to default to Veo 2 for certain features, frustrating users seeking the full capabilities of the newer model.

Industry Impact: The Real Numbers

Financial analysts are examining potential impacts on traditional Hollywood studios. Investment advisors suggest companies reliant on conventional film production methods may face significant challenges.

Netflix is viewed as potentially well-positioned to leverage AI tools like Veo 3 to reduce production costs while maintaining content quality.

Marketing agencies working in short-form content (TikTok, Instagram Reels, YouTube Shorts) are exploring how Veo 3 could streamline creative processes, though the high subscription cost may limit access for smaller creators.

The Regulatory Response

Policymakers are grappling with how to balance innovation with consumer protection. The potential for AI-generated content to influence political discourse has raised concerns about transparency and accountability measures.

International differences are emerging. While the US has generally favoured industry self-regulation, other jurisdictions are pursuing more prescriptive approaches that could affect global deployment.

Digital safety organisations emphasise the need for parents to engage with children about distinguishing real from fake content and developing critical thinking skills.

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What This Means for Businesses

Opportunities Being Explored:

Training materials: Converting abstract concepts into visual stories
Multilingual content: Creating content in different languages with native-style voiceovers
Rapid prototyping: Independent filmmakers testing entire scenes before investing in full production

Challenges to Consider:

Authenticity questions: Customers will increasingly question what content is real
Skills requirements: Effective use requires learning prompt crafting and understanding system capabilities
Cost barriers: Current pricing may create a digital divide in content creation capabilities
Quality consistency: Performance varies significantly based on prompt type and complexity

The Bigger Picture

What's driving the debate: Veo 3 sits at the intersection of remarkable technical achievement and significant societal implications. The democratisation of high-quality content creation offers genuine opportunities, but simultaneously raises fundamental questions about information integrity and economic disruption.

The consensus: Technology is advancing faster than society's ability to adapt regulatory frameworks, educational approaches, and cultural norms to address the challenges.

Google's response: They've implemented SynthID watermarking technology to embed invisible markers in Veo 3-generated content, though experts note that determined bad actors may find ways to circumvent such protections.

Looking Ahead

The competitive landscape in AI video generation continues evolving rapidly. Major technology companies are investing heavily in similar capabilities, potentially accelerating the overall pace of advancement.

Key questions businesses are asking:

How quickly will this technology become mainstream?
What's the timeline for international availability?
How will quality improve and costs decrease?
What regulatory frameworks will emerge?

The path forward will likely require collaborative efforts among technologists, policymakers, educators, and civil society to harness benefits while mitigating potential harms.