Diane Keaton's Family 'Fuming' Over Plans to Resurrect Late Movie Icon as Hologram, Ghost or AI Avatar in 'The Family Stone' Sequel

Diane Keaton is at the center of fury over Hollywood plans to digitally resurrect her for a sequel to The Family Stone, with her relatives said to be furious at the idea of the late actor returning as a hologram, ghost or AI avatar.

Keaton, who died on October 11 at age 79 from a bacterial pneumonia infection, played matriarch Sybil Stone – a mother grappling with terminal b---- cancer – in Thomas Bezucha's 2005 Christmas ensemble film.

Now, nearly two decades later, Bezucha, 61, is developing a follow-up – but the project has now been engulfed in controversy as studio executives are pushing to bring back Keaton in the film using digital effects after her death.

According to multiple insiders, Keaton's family is "deeply upset" by the idea, which they view as exploitative and say would be against her wishes.

Bezucha confirmed earlier this month he had been working on the sequel for months before Keaton's passing, saying he had long been revisiting the world of the Stone family.

"I've been haunted by the loss of Sybil for months now while I worked on it, and so this was a blow on a tender bruise already," he said. "Mentally, I've been spending time in that house where I've been missing her for a while already."

Studio leaders, however, see her death as a commercial opportunity, a senior production source said.

"They think audiences will pack cinemas if Diane appears in any form – hologram, AI, even a ghostly cameo," the insider said. "But her family is fuming. They feel like she isn't being treated as a person, but as a digital asset."

A second source said the idea had "landed like a bomb" among those closest to Keaton, including her daughter Dexter, 29, and son Duke, 24.

"Her kids are horrified," the source said. "They see it as crossing a line, especially so soon after losing her. To them, it feels like her grief is being exploited for profit."

According to insiders, studio figures began pressing their digital-resurrection plan shortly after learning Bezucha was working on a script for his Family Stone sequel. One added executives believe the movie "needs Sybil" to justify the sequel, even if that means recreating her digitally. But Bezucha had been leaning toward a quieter tribute, according to sources.

"He was possibly thinking of something more tasteful for the follow-up," one insider said, noting his early idea involving the family leaving an empty seat for Sybil at Christmas, followed by a dedication to Keaton in the credits.

Bezucha has publicly stressed the weight of responsibility he feels over the project.

He said he wants to "do a good job by the rest of the cast" – and "honor (Keaton) even more." But sources say he is also wary of turning the project into what one described as "a tech showcase instead of a story about grief and family."

The director has also been adamant, both then and now, the film would only go ahead with returning cast members.

"I'm not interested in the Brady family reunion without the original Jan," he said.

The proposed sequel aims to reunite Sarah Jessica Parker, Dermot Mulroney, Luke Wilson, Claire Danes, Rachel McAdams, Elizabeth Reaser and Craig T. Nelson, though no contracts have been signed. Their initial response was "unanimously positive," a source said, but the resurrection idea may introduce a new hesitation among several of them.

Keaton, who left $5 million in her will to ensure lifelong care for her golden retriever, Reggie, was remembered by her family as someone who valued dignity above spectacle.

Following her death, they said they were "very grateful for the extraordinary messages of love and support they have received these past few days on behalf of their beloved Diane."