Netflix has officially entered the age of generative AI, using the technology to reduce production costs on one of its original shows. The streaming giant has confirmed that it used AI-generated visual effects (VFX) in the Argentine science fiction series, "The Eternaut". This marks the first time Netflix has incorporated generative AI in the final cut of an original series or film.

In "The Eternaut," AI was used to create a complex scene depicting a building collapsing in Buenos Aires. According to Netflix co-CEO Ted Sarandos, using AI to generate the building collapse scene allowed the production team to complete the sequence ten times faster than with traditional VFX methods. Sarandos also stated that the cost of producing the scene through conventional methods would not have been feasible, given the show's budget.

The decision to use generative AI was not solely about innovation but also about cost savings. Sarandos has emphasized that AI presents an "incredible opportunity" to improve film and series quality, not just to make them cheaper. He sees AI as a tool to help creators expand the possibilities of storytelling on screen. Netflix leadership has stated that AI is not just about cheaper production, but about making films "10% better". AI can empower pre-visualization, set design, and even de-aging at scale.

Netflix is integrating AI into multiple layers of its platform. This includes conversational search, where users can request content using natural language prompts. Netflix also plans to introduce interactive ads powered by generative AI for ad-tier subscribers, beginning in 2026. Furthermore, the company already uses generative AI to produce foreign-language dubs, expanding global accessibility.

The use of generative AI in content creation has sparked debate within the entertainment industry. Some critics worry that AI relies on training data sourced from copyrighted works without consent, raising ethical and legal concerns. There are also concerns that increased reliance on AI could displace creative professionals. The Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) held a strike in 2023, demanding stronger safeguards against AI replacing actors, voice talent, and other creatives. Under the new agreement, studios are prohibited from using AI to write or edit scripts already written by a human writer.

Despite these concerns, Netflix remains committed to "telling great stories" and believes that AI will not interfere with this commitment. The company views AI as another tool and not a replacement for human creativity. Netflix believes that AI tools are helping creators expand the possibilities of storytelling on screen, which is exciting.

The success of "The Eternaut," which has been renewed for a second season, is a crucial proof of concept for Netflix. The positive reception suggests that AI-generated footage did not detract from audience or critic enjoyment, potentially encouraging the company to deploy the technology more broadly in the future.