The AI-generated short film 'Zombie Scavenger' has taken the film industry by storm, achieving viral status on social media with a production cost of just $400. Created by Chinese filmmaker MX-Shell using ByteDance's Seedance 2.0, the 3-minute and 34-second film showcases cinematic quality and detailed animation, challenging traditional filmmaking norms. Hollywood AI film studio founder PJ Ace praised the film as one of the best short films in recent years. The release of 'Zombie Scavenger' coincides with growing debates over AI's impact on the film industry, highlighted at the 2026 Cannes Film Festival. Festival chairman Thierry Frémaux expressed concerns over AI-induced job losses, while others, like Demi Moore, advocate for coexistence with AI technology. The film's success underscores the potential for AI to democratize filmmaking, reducing costs and barriers to entry, while raising questions about the future of traditional film production.