Netflix has confirmed the use of generative artificial intelligence (AI) in its production process for the first time, marking a pivotal moment in the streaming giant’s content creation strategy.
Ted Sarandos, co-chief executive of Netflix, revealed that a scene in the Argentine sci-fi series The Eternauts featured visual effects generated by AI.
The sequence, which showed a building collapsing in Buenos Aires, was produced using generative AI technology, a move that drastically reduced time and production costs.
According to Sarandos, this development enabled the team behind The Eternauts to deliver the dramatic sequence around ten times faster than would have been possible using traditional special effects.
“The cost of it just wouldn’t have been feasible for a show in that budget. 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,” said Mr Sarandos.
The implementation of AI in the entertainment sector remains a divisive issue. Critics argue that generative AI can produce content derived from the work of artists and creators without obtaining proper consent. There are also ongoing fears about AI potentially displacing creative professionals in film and television.
The topic came to a head during the Hollywood strike of 2023. The Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) called for stringent controls over how AI is used in the industry, citing concerns around fair labour and intellectual property.
The announcement came as Netflix reported strong financial results for the second quarter of 2025. The platform’s revenue surged by 16% to $11 billion (£8.25 billion), compared with the same quarter in the previous year. Profits jumped from $2.1 billion to $3.1 billion.
A key driver behind this growth was the explosive success of the final season of Squid Game, the South Korean thriller that continues to captivate global audiences. The concluding chapter has already racked up 122 million views, contributing significantly to Netflix’s stronger-than-expected earnings.
Sarandos highlighted that AI-driven visuals are proving especially beneficial for shows operating under tighter financial constraints. He noted that AI tools enable filmmakers to push creative boundaries without inflating budgets.
“The technology allowed the production team to complete sequences faster and at a lower cost.” This breakthrough could signal a shift in how visual storytelling is approached across the industry, especially for smaller-scale productions aiming to achieve blockbuster-quality visuals.
While Netflix celebrates its innovation, the entertainment industry remains cautious. The balance between cost-efficiency and creative integrity will continue to be scrutinised, especially as AI becomes more deeply embedded in production pipelines.
For now, The Eternauts has made history and perhaps set the stage for what’s to come in the future of TV and film production.
