Netflix has confirmed the use of generative AI in the production of its shows and films, marking a quiet but notable milestone for the entertainment industry.
Highlights
- First Mainstream Use of GenAI in TV Production: Netflix quietly confirmed it used generative AI to create a major VFX scene in the sci-fi series El Eternauta.
- Faster & Cheaper VFX: The AI-assisted building collapse scene was completed significantly faster—reportedly up to 10x quicker—than traditional methods and at a reduced cost.
- Not Replacing Creatives, but Empowering Them: Co-CEO Ted Sarandos emphasized GenAI as a tool for enhancement, not replacement—enabling scenes that would’ve been cut due to budget limits.
- In-House Innovation Studio at the Helm: Netflix’s Eyeline Studios led the GenAI integration, showing it’s a core strategy, not an outsourced experiment.
- AI Goes Beyond Content: GenAI is also being used for smarter search, personalized recommendations, and upcoming AI-powered ad formats expected in late 2025.
- Strategic Shift Amid Industry Tensions: Netflix’s move comes shortly after the 2023 Hollywood strikes, which highlighted AI concerns. The company is positioning its use as creator-friendly.
While discussions about AI in Hollywood have been largely theoretical, Netflix’s move brings GenAI directly into mainstream content—both behind the scenes and on the screen.
First AI-Generated Scene Debuts in El Eternauta
The announcement came during Netflix’s Q2 earnings call, where co-CEO Ted Sarandos revealed that the company’s internal production team had collaborated with the creators of El Eternauta, an Argentine sci-fi series, to produce a visual effects (VFX) scene using GenAI.
The scene—a large-scale building collapse—was completed significantly faster and at a lower cost than traditional VFX methods.
“This is real people doing real work with better tools,” Sarandos stated, clarifying that the goal is not to replace creative professionals, but to enhance their abilities.
According to Sarandos, the AI-assisted workflow made scenes viable that might otherwise have been cut due to budget constraints.
In-House Innovation Studio Leading AI Integration
The project was developed through Eyeline Studios, Netflix’s internal production innovation arm. This indicates that the GenAI integration is not an outsourced experiment, but a deliberate strategy led by the company’s own teams.
Both creators and audiences reportedly responded positively to the result, according to Sarandos. While exact technical details remain undisclosed, the company’s willingness to deploy GenAI in a flagship project signals a growing level of confidence in the technology.
Extending AI Across the Platform
Netflix’s use of AI extends beyond content production. Co-CEO Greg Peters noted that GenAI is being leveraged across multiple areas of the platform,
- Personalized search features that better interpret user queries,
- Content recommendations powered by more nuanced understanding,
- And interactive advertising, with AI-powered ad formats expected to launch in the second half of 2025.
Speed and Efficiency Gains
Reports indicate that the AI-powered VFX sequence in El Eternauta was completed up to ten times faster than with conventional workflows.
Sarandos noted that the scene may not have been feasible without GenAI due to the show’s budget limitations. This underscores AI’s potential to democratize access to high-end production capabilities once reserved for blockbuster budgets.
Industry AI Debate
The timing of Netflix’s move is noteworthy. Following the 2023 Hollywood strikes—where one of the central issues was AI’s role in creative industries—many studios remain cautious.
Netflix has introduced its GenAI strategy as creator-supportive rather than creator-replacing, though broader industry reactions remain mixed.
While it’s still early to assess how audiences will respond to AI-generated elements in storytelling.
