In the 1920s, the film was a novelty, much like generative AI today, but with different effects. It created a new form of entertainment based on theater but with a larger audience because the performance was recorded. At first, only the image was recorded, then the sound was introduced (synchronized). Although the technology existed since the end of the 19th century, it wasn’t until 1927 that the sound was incorporated into a film – The Jazz Singer.
In the Roaring 20s, the world was emerging from a profoundly destructive event: World War I. Many people lost their lives, homes, careers, and lifestyles. Other societal changes were underway, like the Harlem Renaissance or the Jazz Age, on the cultural level, and the US experienced economic growth with an accent on consumers. The role of women grew, and we see it in the Flappers movement.
So, the film industry, too, reflected those changes. It was more than a form of entertainment; it helped spread ideas and cultural movements, showed people a lifestyle they aspired to attain, popularized broader concepts, and simplified them.
Some names were Louis Armstrong, Duke Ellington, Charlie Chaplin, Greta Garbo, Buster Keaton, Rudolf Valentino and so on. This is a short answer, but there is so much to say about the subject.