AI speeds up visual effects and enhances creative workflows as Netflix embraces generative tech across content, ads, and search
AI Makes Its On-Screen Debut
Netflix has officially begun using generative AI (GenAI) in its original shows and films, marking a new chapter in how major studios approach content production. Speaking during the company’s Q2 earnings call, co-CEO Ted Sarandos revealed that the platform used GenAI-generated final footage for the first time in the Argentine sci-fi series El Eternauta.
- A scene involving a building collapse was completed using AI-based tools.
- Sarandos said the scene was finished 10 times faster than with traditional VFX and at a lower cost.
This marks a major shift toward AI-assisted production techniques becoming mainstream in scripted entertainment, not just in animation or experimental content.
Beyond Cost Savings: A Creative Accelerator
Sarandos emphasized that the goal is not just to cut budgets but to empower creators with better tools.
“This is real people doing real work with better tools,” he said. “AI can help creators make films and series better, not just cheaper.”
He pointed to areas like:
- Pre-visualization and shot planning
- Advanced visual effects (VFX) such as de-aging
- Expanding accessibility of high-quality effects to lower-budget projects
AI Use Cases Extend Beyond Content
Co-CEO Greg Peters added that generative AI is also being used in Netflix’s search, recommendations, and advertising operations.
- An AI-powered search feature was introduced earlier this year.
- Netflix plans to roll out interactive ads using generative AI in the second half of 2025.
- AI is being used to personalize ad experiences and improve relevance in user targeting.
Netflix’s Strong Quarter and Global Reach
In Q2 2025, Netflix reported robust growth:
- $11.08 billion in revenue, a 16% year-over-year increase
- $3.13 billion in profit
- Viewers watched 95 billion hours of content in the first half of 2025
- Non-English titles made up one-third of all views, showing continued global traction
Industry Implications
Netflix’s move comes as the broader entertainment industry debates the role of AI in creative work, especially following last year’s WGA and SAG-AFTRA strikes, where AI was a major sticking point.
- With Hollywood studios exploring AI collaborations, Netflix is the first major streamer to publicly integrate GenAI into final screen footage.
- The company’s stance signals a pragmatic, creator-first approach that balances speed, cost, and creative flexibility.
