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Netflix Uses AI to Create Better and More Affordable Content

Posted on July 19, 2025

Netflix Explores AI in Production for First Time

Netflix has made a significant move by incorporating generative AI into one of its shows, marking a new era in the production of films and television series. This step is aimed at making content “cheaper” and “better,” according to the company’s leadership.

Following the release of its second-quarter results, co-chief executive Ted Sarandos confirmed to analysts that the Argentinian sci-fi show The Eternaut became the first to use AI on the platform. Sarandos emphasized that the company believes AI holds great potential to enhance the quality of content, not just reduce costs.

According to Sarandos, the Spanish-language series, which follows survivors of a deadly snowfall that wipes out most of the population, used AI to create a scene where a building collapses in Buenos Aires. He noted that this sequence was the first instance of AI-generated footage appearing in a Netflix original series or film. The creators were reportedly very pleased with the outcome.

Sarandos praised the visual effects team for their work, stating that using AI-powered tools allowed them to achieve impressive results quickly. He added that the VFX sequence was completed 10 times faster than it would have been with traditional methods. This efficiency is particularly beneficial for projects with limited budgets, as it enables them to produce convincing effects that might otherwise be unattainable.

In addressing concerns about AI replacing roles in the film and TV industry, Sarandos highlighted the benefits seen by those using these tools. He mentioned improvements in pre-visualization and shot planning, as well as in visual effects.

The use of AI in film has sparked considerable debate. High-profile figures such as Robert Downey Jr. and James Gunn have expressed strong opposition to the technology, while others like James Cameron and Ben Affleck have embraced it. The issue became a focal point during the 2023 dispute between SAG-AFTRA, the largest union of actors and screen performers in the U.S., and Hollywood studios.

The strike, which began on July 19, 2023, halted several major productions, including Deadpool and Wolverine and Wicked. At the time, striking actors sought assurances regarding the use of AI, along with demands for higher residual pay related to streaming and better employee benefits.

An agreement was eventually reached in November, with the union stating: “SAG-AFTRA members will receive unprecedented wage escalation, significantly improved streaming compensation, and the first-ever crucial protections around the use of artificial intelligence technology.”

As the entertainment industry continues to evolve, the integration of AI presents both opportunities and challenges. While it offers new ways to enhance production efficiency and creativity, it also raises important questions about the future of jobs and the ethical implications of technology in storytelling. For now, Netflix’s use of AI in The Eternaut serves as a notable example of how the technology can be leveraged to create compelling content while maintaining artistic integrity.

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