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Netflix uses generative AI in original show for first time to cut production costs

18 July 2025
in Business
Reading Time: 3 mins read
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Netflix uses generative AI in original show for first time to cut production costs
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Netflix has used generative artificial intelligence to create visual effects in one of its original TV shows for the first time, as part of a wider strategy to reduce production costs and accelerate timelines.

The streaming giant revealed that AI technology was used to produce a complex scene in its new Argentine sci-fi drama The Eternauts, featuring the collapse of a building in Buenos Aires. The sequence marks the first use of final AI-generated footage in a Netflix original film or series.

Co-chief executive Ted Sarandos said the decision to use generative AI—software capable of creating images and video based on text prompts—enabled the production team to deliver the effects ten times faster than through traditional VFX method “The cost of it just wouldn’t have been feasible for a show in that budget,” Sarandos said. “That sequence is the very first generative AI final footage to appear on screen in a Netflix original series or film. The creators were thrilled with the result.”

The announcement comes as Netflix posted a 16% year-on-year increase in revenue, reaching $11 billion (£8.25 billion) for the quarter ending June 30. Profits surged from $2.1 billion to $3.1 billion, buoyed by the release of the third and final season of Squid Game, which has drawn over 122 million views to date.

While Netflix’s use of AI has drawn praise for its innovation and cost-efficiency, the move also reopens debate about AI’s role in creative industries. Critics argue that generative AI often learns from existing artistic works without the consent of their creators, and that increasing use of automation could displace human artists and technicians.

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