Netflix doubles down on AI amid soaring profits and controversy

Netflix is stepping into the future of filmmaking. For the first time, the streaming giant has confirmed that it used generative AI in one of its original productions
Text: Marcus Persson
Published 2025-07-19

Netflix has officially confirmed that it has used generative AI in a finished original production for the very first time, specifically in the Argentine sci-fi series El Eternauta. In a spectacular scene where a building collapses in Buenos Aires, the entire effect was created using AI via Netflix's in-house Eyeline Studios. According to co-CEO Ted Sarandos, this AI solution was not only ten times faster than traditional visual effects, the scene would've been "unachievable" within the show's budget without it.

In an interview, Sarandos emphasised:

"We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper. There are AI-powered creator tools. So this is real people doing real work with better tools. Our creators are already seeing the benefits in production through pre-visualization and shot-planning work, and certainly visual effects. It used to be that only big-budget projects would have access to advanced visual effects like de-aging."

In short, Sarandos sees AI as a tool that enables complex and visually impressive effects even in lower-budget films and TV series. At the same time, he stresses that real humans are still very much involved, and that AI isn't a replacement, but a way to expand storytelling and production possibilities.

Unsurprisingly, the move has raised concerns within the film and VFX industries. During the Hollywood strikes of 2023, labour issues related to AI were a key point of contention. Unions warn that the technology risks displacing skilled roles, and some institutions, like Spain's Goya Academy, have even introduced restrictions on AI-generated content in productions.

Meanwhile, Netflix has posted strong financials in its second quarter: roughly $11 billion in revenue (a 16% increase) and $3.1 billion in profit. The company credits some of that success to high-performing titles like Squid Game, which in turn opens up further opportunities to invest in AI innovation.

What do you think about the use of AI in film and TV? Are traditional VFX artists at risk of becoming obsolete, or is this just another tool in the creative toolbox?

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