In a milestone moment for the entertainment industry, Netflix has confirmed that it is now actively using generative AI in the production of its original films and series. During the company’s Q2 earnings call on Thursday, co-CEO Ted Sarandos revealed that the platform delivered its first-ever final GenAI-rendered scene in an upcoming Argentine show titled El Eternauta (The Eternaut).
The scene, which depicts a collapsing building, was created in partnership between Netflix’s in-house production team and the show’s producers. According to Sarandos, using GenAI tools allowed the visual effects team to complete the scene ten times faster and at a significantly lower cost than traditional methods.
“We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper,” Sarandos said. “This is real people doing real work with better tools.”
Netflix emphasized that the technology is being used to enhance—not replace—human creativity, with current applications including pre-visualization, shot planning, and visual effects. Sarandos also pointed to use cases like de-aging, which previously required large VFX budgets but can now be democratized through AI.
Co-CEO Greg Peters added that Netflix is integrating generative AI into other areas of the business as well, including personalized recommendations, search, and advertising systems. The company plans to roll out interactive AI-powered ads in the second half of 2025.
The announcement comes as Netflix continues to post strong financial results. In Q2, the streaming giant reported $11.08 billion in revenue, up 16% year-over-year, and a quarterly profit of $3.13 billion. Users watched over 95 billion hours of content in the first half of 2025, with non-English titles now making up a full one-third of all viewership.
With Hollywood studios increasingly exploring AI’s potential behind the scenes, Netflix appears to be positioning itself at the forefront of that evolution—offering a glimpse of what the future of entertainment might look like when human storytelling and machine-powered tools converge.