Netflix Acknowledges Using Generative AI in Show Production to Reduce Costs

Netflix has embraced generative artificial intelligence (AI) in content creation by integrating AI-powered visual effects into its original Argentine sci-fi series, The Eternaut. This marks the first time the streaming giant has used generative AI for final on-screen footage in any of its original productions. The revelation came from Netflix co-CEO Ted Sarandos during a recent investor call. He highlighted a particular scene in the series — a building collapse in Buenos Aires — that was completed using AI tools by Netflix’s internal production innovation group, iLine, in collaboration with its in-house visual effects studio, Scanline.

According to Sarandos, the visual effects (VFX) sequence was completed ten times faster and at a significantly lower cost than traditional VFX methods would have allowed. He noted that achieving such an effect using conventional production techniques would have been financially unfeasible given the show’s budget. Sarandos emphasized that generative AI enables creative teams to deliver complex sequences quickly and cost-efficiently.

However, this use of AI in content creation has generated mixed reactions within the entertainment industry. Critics argue that generative AI can create content by referencing or mimicking others’ work without proper consent or attribution, raising ethical concerns. Furthermore, there is widespread fear that the rise of AI could displace human roles in creative sectors, particularly in writing, visual arts, and production.

The debate over AI’s role in entertainment was central during the 2023 Hollywood writers’ strike. As a result of the strike’s resolution, new agreements prohibit studios from using AI to write or revise scripts that have already been authored by human writers. Despite this, Netflix maintains that its use of generative AI will not compromise the company’s core mission of “telling great stories.”

Adding to the concern are the rapid advancements of generative AI tools such as OpenAI’s Sora and Google’s Veo 3. These tools can produce high-quality, cinematic video content from simple text prompts, a capability that further intensifies fears surrounding job security and the potential erosion of traditional creative processes.

Looking ahead, Netflix plans to incorporate AI-powered interactive advertisements in its content for ad-supported subscribers starting in 2026. This move reflects the company’s broader strategy to integrate AI into both storytelling and platform monetization.

The Eternaut itself is Argentina’s most ambitious sci-fi television project to date. The series is adapted from the Eisner Award-winning graphic novel El Eternauta, written by Héctor G. Oesterheld and illustrated by Francisco Solano López. Originally published between 1957 and 1959 in serialized format, the comic was compiled into a single volume in 2015.

Upon its premiere in April, The Eternaut quickly gained international popularity. It topped Netflix’s global Top 10 list for non-English-language series and broke into the overall Top 10 rankings in several countries, including the United States, Brazil, France, Germany, and Spain. Owing to its success, a second season of The Eternaut has already been officially confirmed by Netflix.