In a notable development for the entertainment industry, Netflix has confirmed it has used generative artificial intelligence (AI) to create visual effects in one of its original series for the first time. The announcement was made by the streaming giant’s co-chief executive Ted Sarandos, who revealed that a pivotal scene in the Argentine science fiction series The Eternaut was produced using AI-generated visuals. The sequence, which depicts a dramatic building collapse in Buenos Aires, was completed at a significantly lower cost and ten times faster than traditional methods would have allowed, according to Sarandos.
Generative AI, which produces videos, images, and other content based on written prompts, is a growing tool in creative industries but remains highly controversial. Critics argue that it repurposes elements of existing creative work without consent and could threaten employment for human artists, actors, and technicians. These concerns were central during the 2023 Hollywood strike, when the Screen Actors Guild–American Federation of Television and Radio Artists demanded stricter regulations on AI use in the industry.
Despite the ethical debate, Sarandos praised the outcome, stating that the AI-enabled sequence in The Eternaut marks the first time Netflix has used final footage created by generative AI in a film or television show. He emphasized that the technology is especially beneficial for productions with limited budgets, enabling high-end visual effects that would otherwise be financially unfeasible. “The creators were thrilled with the result,” he noted, suggesting a positive reception on set.
Netflix’s use of AI comes at a time of strong financial performance. The company reported a 16% year-on-year rise in revenue, reaching $11 billion for the quarter ending in June. Net profits also jumped to $3.1 billion from $2.1 billion. The success of the final season of the South Korean phenomenon Squid Game, which garnered 122 million views, was cited as a major contributor to this growth.
Industry observers, including Davier Yoon, co-founder of Singapore-based animation studio CraveFX, said the move was expected as more studios begin to integrate AI into their production pipelines. Yoon described AI as one of many tools now available to visual effects artists and believes it levels the playing field by helping smaller studios produce blockbuster-quality visuals. “Ultimately, it is the artist who decides what is in the final image, not AI,” he said.
Nevertheless, not all stakeholders are embracing the shift. In 2024, filmmaker Tyler Perry paused an $800 million expansion of his Atlanta studio, citing concerns about the job-displacing potential of rapidly advancing AI tools such as OpenAI’s Sora, which can generate realistic video content from mere text prompts. While the technology is undeniably impressive, its long-term impact on employment and creative ownership remains a subject of intense debate.
Netflix’s latest foray into generative AI marks a turning point in how mainstream studios are navigating the convergence of creativity and machine learning. Whether it will become an industry standard or a flashpoint for resistance remains to be seen.
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