Billionaire Mukesh Ambani-led Reliance Industries is embedding artificial intelligence (AI) at the core of its media and entertainment empire as it seeks to position itself as the primary entertainment destination for every Indian, the company said in its latest annual report."AI will define the next era of entertainment and, as India's largest media & entertainment platform, Reliance has the responsibility to lead this transformation -- reimagining everything from script to screen and from idea to experience," it said.Reliance Media & Entertainment vertical, which includes JioStar, Jio Studios, and Network18, delivered record-breaking metrics in viewership, engagement and monetisation in FY26.The revenue from operations of Reliance's media and entertainment vertical was at Rs 34,917 crore, up almost twofold in FY26. This was at Rs 17,762 crore a year before.Discussing the outlook for the segment, RIL said AI will define the next era of entertainment and will be leveraged not merely as a business efficiency tool, but as a core capability to transform content creation, consumer experience and audience engagement."AI is not being viewed merely as a driver of business efficiency; rather, it is being embedded into the core of operations to help shape the next era of entertainment and build deeper fan engagement," it said.Now, AI-led optimisation across content creation and production offers structural efficiency gains. Moreover, integration of commerce within the streaming ecosystem opens incremental participation in India's expanding digital commerce landscape.The company outlined a multi-pronged strategy focused on reinforcing its leadership in large-screen entertainment, accelerating the shift from linear television to connected TVs, and differentiating its mobile offerings through interactive formats, voice-enabled experiences and vertical video content."Focus remains on strengthening leadership on the large screen, enabling the transition from linear to connected TVs, differentiating the mobile offering through interactivity, voice and vertical video, and enhancing the personalisation engine," it said.Reliance also said it is investing in strengthening its personalisation engine to deliver tailored content experiences to users.JioStar - a joint venture created after the merger of the media business of Reliance and the India business of global media giant Walt Disney - will continue to be the 'home of sports' in India and bring to life some of the most-loved stories from around the world."As the customer value proposition continues to evolve, active efforts are underway to expand monetisation models beyond traditional advertising and subscription streams," it said.However, it also mentioned challenges for the entertainment business such as "upward pressure on content costs" and audience fragmentation, which necessitates platformagnostic and multi-format content strategies.JioStar has reinforced its status as India's premier entertainment powerhouse. In Hindi GEC (Pay) segment, the network commanded a 48 per cent market share, while its JioStar remains India's premier sports aggregator reaching a billion screens with over 250 days of live action.Its OTT platform solidified its reign as India's premier digital entertainment ecosystem, scaling to an average of a massive 451 million monthly active users, RIL said in its annual report.