Netflix has acknowledged that it used generative artificial intelligence to complete a visual effects sequence in The Eternaut, a science fiction series set in Buenos Aires. The confirmation came during the company’s second-quarter earnings call, where Netflix co-CEO Ted Sarandos discussed the cost-saving implications of AI in content production. The scene in question featured a collapsing building and was completed using AI rather than traditional visual effects tools.
Sarandos said the decision to use AI enabled the team to finish the visual sequence ten times faster than it would have taken using conventional methods. He also noted that, due to budget constraints, producing the scene through standard workflows would not have been financially viable. This marks the first time Netflix has publicly admitted to using generative AI in the making of one of its original series or films.
“We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper,” Sarandos said during the earnings call. While the company did not disclose which specific AI tools or vendors were involved, the comments suggest that Netflix is looking to AI not only for efficiency but also as an integral part of its evolving production toolkit.
A Shift Toward AI-Driven Production
Netflix’s use of AI in The Eternaut reflects a broader trend in the entertainment industry. Studios are exploring ways to reduce costs and streamline production. By using AI to replicate or simulate visual effects that are typically crafted by teams of artists and technicians, studios can shorten production timelines and better manage expenses. For Netflix, a company known for producing a high volume of original content, this approach offers a potential solution to rising costs.
The company has previously experimented with AI in features designed for user interaction. However, this new development signals a shift in how Netflix incorporates AI into behind-the-scenes workflows. The AI-generated scene in The Eternaut may be an early sign of how generative technology could begin to replace more labor-intensive methods. While Sarandos emphasized that the technology is meant to assist creators, the financial benefits are clear.
Netflix’s willingness to adopt AI in creative processes comes at a time of growing debate over automation’s role in artistic industries. Labor groups have raised concerns about job displacement and the erosion of creative value. The use of AI in high-profile productions is expected to face increased scrutiny. So far, Netflix has not indicated whether AI was used in other parts of The Eternaut or if similar tools will be applied to future projects.
AI’s Role Beyond Production
Netflix is also integrating artificial intelligence into other areas of its business. In May, the company launched an AI-powered search feature on its mobile app. This tool allows users to find content using conversational phrases such as “something funny and upbeat” or “stories about dancers.” The goal is to make content discovery more intuitive by focusing on tone and mood rather than relying solely on titles or genres.
In addition, the company is exploring ways to use AI in advertising. One of the proposed features involves placing brand products into digitally generated scenes inspired by Netflix series. For example, an advertisement might appear in front of a virtual backdrop styled after Stranger Things. This method of AI-assisted product placement could offer a new source of revenue while blending more naturally into the viewer experience.
These advancements illustrate Netflix’s broader effort to embed AI into multiple facets of its operations. Although the company presents these tools as ways to enhance creativity, they also serve a practical purpose. AI helps reduce expenses, improve workflow efficiency, and may ultimately reshape how entertainment is produced and delivered. The implications reach beyond Hollywood and speak to larger questions about automation and the future of creative labor.
Industry Reactions and Long-Term Implications
The decision to use AI in The Eternaut will likely influence how other studios respond to their own production challenges. As more companies adopt AI to manage budgets and speed up development cycles, the role of human artists and technicians may begin to shift. Industry leaders now face the difficult task of promoting innovation while upholding fair labor standards and preserving creative quality.
Labor unions have already expressed concern about AI’s growing presence in media production. During recent contract negotiations, both writers and actors raised issues related to credit, compensation, and control over content created with AI. These concerns underscore unresolved questions about the legal and ethical boundaries of artificial intelligence in creative work.
For Netflix, AI is being positioned as a competitive advantage. As the streaming market grows more saturated and the pressure to reduce costs increases, technologies that offer faster and more affordable outcomes are becoming more appealing. Still, the real impact will depend on how these tools are used and how the rest of the industry responds. That response will shape not just the future of Netflix, but the future of entertainment itself.