Netflix Embraces Generative AI in Original Series to Cut Costs

For the first time, Netflix has used generative artificial intelligence (AI) to produce visual effects in one of its original series. The groundbreaking application appeared in the Argentine sci-fi drama “The Eternauts,” where AI was used to create a dramatic building collapse scene.

According to Ted Sarandos, Netflix’s co-chief executive, using AI significantly accelerated production and reduced costs. Traditional visual effects would have taken far more time and budget. It is a challenge for a mid-budget production like The Eternauts. With generative AI, the team completed the complex sequence 10 times faster than through conventional methods.

“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,” Sarandos stated.

The announcement comes on the heels of Netflix reporting strong financials. In the quarter ending June:

• Revenue rose 16% year-over-year to $11 billion
• Profit increased from $2.1 billion to $3.1 billion
• The final season of Squid Game alone drew 122 million views, contributing to the company’s performance boost

Industry Tensions Around AI Use

Despite the innovation, generative AI remains a hot-button issue in the entertainment industry. Critics argue that AI can repurpose others’ creative work without consent, and there’s concern that it could displace human jobs, especially in VFX and creative roles.

The controversy reached a peak during the 2023 Hollywood strike, when the Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) called for tighter regulations around AI use in entertainment.

Sarandos emphasized that AI could democratize high-end visual effects, especially for creators working with limited budgets. As Netflix experiments further with AI-driven production, the balance between cost-saving innovation and industry ethics is likely to remain in the spotlight.