Netflix Integrates Generative AI in Content Production and Platform Operations
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Netflix has begun integrating generative AI into its content production pipeline, marking a notable shift in how major studios are experimenting with artificial intelligence in filmmaking. During its Q2 earnings call, co-CEO Ted Sarandos revealed that the Argentine sci-fi series El Eternauta features what the company claims is the "first GenAI final footage to appear on screen." The AI-generated visual, a collapsing building scene, was completed in significantly less time—reportedly ten times faster—than with conventional visual effects methods, and at a lower cost.
Sarandos clarified that AI is not replacing human creativity but is being used to enhance production workflows. "This is real people doing real work with better tools," he said, citing improvements in pre-visualization, shot planning, and effects work such as digital de-aging—once only viable for large-budget productions.
Beyond content creation, Netflix is expanding its use of generative AI in platform features. Co-CEO Greg Peters noted that the technology is being deployed in personalization, search, and advertising systems. The company is preparing to launch interactive, AI-driven ads in the latter half of 2025.
The announcement comes alongside Netflix's second-quarter earnings, where the company reported USD 11.08 billion in revenue, a 16 per cent increase year-over-year—and a net profit of USD 3.13 billion. Viewership reached over 95 billion hours in the first half of 2025, with one-third attributed to non-English content.
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