Netflix has confirmed the use of generative artificial intelligence (AI) in one of its original series for the first time, marking a significant step in the streaming giant’s embrace of emerging technology within its production processes.
Co-Chief Executive Officer Ted Sarandos revealed that AI-generated visual effects were employed in The Eternaut, a new Argentine science fiction series, particularly for a sequence depicting the collapse of a building in Buenos Aires.
According to Sarandos, generative AI—which creates visuals and videos based on written prompts—enabled the production team to complete the scene nearly ten times faster and at a significantly lower cost than traditional special effects would have allowed.
“The cost of it just wouldn’t have been feasible for a show in that budget,” he said. “That sequence actually is the very first [generative] AI final footage to appear on screen in a Netflix original series or film. So the creators were thrilled with the result.”
The disclosure comes as Netflix posted a 16% year-on-year revenue increase, reaching $11 billion for the second quarter of 2025. Profits also rose from $2.1 billion to $3.1 billion. The strong performance was driven in part by the final season of the hit South Korean thriller Squid Game, which garnered 122 million views.
Despite its cost and efficiency advantages, the use of generative AI remains a divisive issue in the entertainment industry. Critics argue that such tools can mimic artists’ work without permission and pose a threat to creative jobs. These concerns were central during the 2023 Hollywood strikes, when the Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) demanded stricter regulation of AI in filmmaking.
In 2024, filmmaker Tyler Perry shelved an $800 million expansion of his Atlanta studio, citing concerns over AI’s rapid advancement and its implications for employment in the industry. Around the same time, tools like OpenAI’s Sora generated both excitement and anxiety over their ability to produce high-quality video content from simple text descriptions.
Nevertheless, some in the animation and visual effects space are embracing the shift. Davier Yoon, co-founder of Singapore-based studio CraveFX, said Netflix’s move was expected as more major studios turn to AI to enhance visual storytelling.
“It feels like a matter of time. AI definitely opens the gate to allow smaller studios to achieve big-budget-looking visuals,” Yoon said. “Ultimately, it is the artist who decides what is in the final image, not AI.”
As the debate continues, Netflix’s venture into generative AI signals a new era for content creation—one where innovation and artistry must find common ground.
