Netflix Pioneers Generative AI in Visual Effects for Original Content

Netflix starts using GenAI in its shows and films | TechCrunch

Companies developing video AI models and tools often talk about working with Hollywood studios to make certain workflows possible. On Thursday, Netflix said that it has started using AI in movies and shows it produces. Speaking at the company's post-results conference call, the company's co-CEO, Ted Sarandos, said that the platform had "the very first GenAI final footage to appear on screen" in an Argentine show called "El Atonata." He noted that Netflix's internal production group teamed up with producers to use AI to create a scene of a building collapsing. Sarandos said that using AI, the scene was finished 10 times faster than it would have with traditional visual effect tools, and that it cost less. "We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper. There are AI-powered creator tools. So this is real people doing real work with better tools. Our creators are already seeing the benefits in production through pre-visualization and shot-planning work, and certainly visual effects. It used to be that only big-budget projects would have access to advanced visual effects like de-aging," he said during the call. Co-CEO Greg Peters said Netflix is using gen AI in other areas as well, including personalization, search and ads, and that the company aims to roll out interactive ads in the second half of this year. Earlier this year, the company rolled out AI-powered search. In the second quarter, Netflix reported revenue of $11.08 billion, up 16% from a year earlier, and profit of $3.13 billion. It noted that users watched over 95 billion hours of content in the first half of 2025, with non-English titles accounting for one-third of all its views.

When Will You See AI-Generated Content on Netflix? It's Possible You Already Have

A graphic-novel adaptation from Argentina already used AI to generate final footage, Netflix's CEO says. How soon will it be before Netflix subscribers begin to see movies and TV show that were made with generative AI technology? According to CEO Ted Sarandos, it's already happened. In a video conference call after Netflix's earnings were announced on July 17, Sarandos took questions, one of which was focused on when and how the streaming company will generate content with artificial intelligence tools. Surprisingly, Sarandos said the company already did it, on an Argentinian sci-fi show called El Eternauta, a graphic-novel adaptation known as The Eternaut in English-speaking markets. For a scene showing a building collapsing in Buenos Aires, Netflix's tech team worked with the filmmakers to generate AI footage that was used as final footage. Sarandos revealed that this was the first time that Netflix has used generative AI for final footage in any TV show or movie it has produced. "We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper," Sarandos said in the call. "Real people doing real work with better tools," he added. The Netflix chief said that the show's budget would never have allowed footage like that to be created with traditional visual effects tools and workflows, and that it was produced 10 times faster than it would have been traditionally. "They were able to achieve an amazing result with remarkable speed," Sarandos said. Filmmakers, he said, are already using AI for pre-visualization and shot planning as well as visual effects such as de-aging. The company also plans to keep expanding its use of AI for keep improving recommendations and other features offered to subscribers.

Netflix admits it used generative AI in a big sci-fi hit to cut costs

Emma Roth is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO. Netflix used generative AI to create a scene in the sci-fi series The Eternaut -- a first for one of the streamer's original shows or films. During an earnings call on Thursday, Netflix co-CEO Ted Sarandos said the use of AI was faster than using traditional visual effects tools and helped cut costs. "That VFX sequence was completed 10 times faster than it could have been completed with traditional VFX tools and workflows," Sarandos said during the call. "Also, the cost of it just wouldn't have been feasible for a show in that budget." Sarandos said the creative team behind The Eternaut used AI to generate a scene of a building collapsing in Buenos Aires, Argentina. "We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper," he added. In May, Netflix revealed a new AI-powered search feature on mobile that lets users find shows or movies using conversational phrases, like "something funny and upbeat" or "stories about dancers." Netflix also said that it will use AI to blend ad breaks with the platform's shows and movies -- for example, allowing advertisers to display their product in front of a Stranger Things-inspired background.

Netflix just revealed AI-generated footage in a popular show for the first time - did you spot it?

Without realizing it, you may have already seen Netflix's first foray into AI-generated content. In its latest company earnings call, Netflix co-CEO Ted Sarandos revealed that AI created part of a scene of a building collapsing in the new Netflix series The Eternaut, a post-apocalyptic drama about an alien invasion in Argentina. Also: I spoke with an AI version of myself, thanks to Hume's free tool - how to try it Sarandos framed the usage of generative AI tools as "an incredible opportunity" for creators to make content better and cheaper. "This is real people doing real work," he explained, "with better tools," adding that a VFX sequence of a building collapsing was completed "10 times faster than it could have been completed with traditional VFX tools and workflow." Sarandos said filming the scene wouldn't have been possible because it would have been far beyond this project's budget. The scene would have been possible with visual effects; it would have just taken more time. While AI tools are common for creators in the entertainment industry, this marks the first time that Netflix has used AI-generated content in an original series or movie. Given how useful AI can be, simply using it in the process isn't the problem here. AI isn't going away. The issue is that it was used to create content (not assist), and viewers didn't know until months later. I pulled up the scene to check it out for myself, and I wouldn't have known it was made with AI (it's in episode 6 of the show at the 59:50 mark if you want to see for yourself). Two shots, each maybe a second long, show large portions of a building falling to the ground. I can maybe tell things look a little strange if I pause and look closely, but especially since the shots in question are spliced quickly with real shots, it's something I'd never see in real time. Also: We tested the best AR and MR glasses: Here's how the Meta Ray-Bans stack up Netflix has experimented with AI in other areas. Two months ago, it introduced a new AI search feature that lets you describe what you want to watch in conversational terms. In May of this year, it introduced generative AI ads.

Is Anything Real? Netflix Is Now Using Generative AI Tools for Visual Effects

Netflix is now using AI-powered text-to-video generators to cut visual effects (VFX) costs, co-CEO Ted Sarandos revealed in an earnings call this week. Sarandos didn't name the AI tools but said they were used to show the collapse of a building in the Argentinian show The Eternaut. "Using AI-powered tools, they were able to achieve an amazing result with remarkable speed, and in fact, that VFX sequence was completed 10x faster than it could have been completed with...traditional VFX tools and workflows," Sarandos said. This is the first time footage produced using generative AI appeared in a Netflix original series or film. Netflix previously used AI for pre-visualization and shot-planning work. "We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper," Sarandos said. "They're AI-powered creator tools. So this is real people doing real work with better tools." Sarandos isn't the only major Hollywood executive in favor of using generative AI to cut costs. A few months back, Avatar director James Cameron revealed he is open to the idea. Generative AI can double filmmakers' "speed to completion on a given shot, so your cadence is faster and your throughput cycle is faster, and artists get to move on and do other cool things and then other cool things," Cameron said during an appearance on a podcast with Meta CTO Andrew Bosworth.

Netflix says it used GenAI in Argentine TV series

LOS ANGELES, July 17 (Reuters) - Netflix (NFLX.O), opens new tab said on Thursday that it used generative artificial intelligence to produce visual effects that appeared for the first time on screen in one of its original series, employing a technology that has been a source of anxiety throughout Hollywood. Co-CEO Ted Sarandos hailed AI as "an incredible opportunity to help creators make films and series better, not just cheaper." Sarandos offered the example of Argentine science-fiction series "El Eternauta (The Eternaut)," where the creators wanted to show a building collapsing in Buenos Aires - a visual effect that would have been beyond the project's budget. The creative team partnered with Eyeline Studios, a production innovation group within Netflix, to make the dramatic scene with the aid of AI. "That VFX sequence was completed 10 times faster than it could have been completed with visual traditional VFX tools and workflows," Sarandos said during the company's second-quarter investor call. "And also the cost of it would just wouldn't have been feasible for a show in that budget." Sarandos said the sequence is the first GenAI final footage to appear on screen in a Netflix original series or film. AI has become a flashpoint in Hollywood since the labor unrest of 2023, which resulted in new guidelines for the use of the technology. The main concern is that AI could replace the work of humans. Co-CEO Greg Peters said Netflix may find other ways to leverage generative AI to improve the user experience - including offering viewers the ability to use spoken words to find something to watch. "Saying 'I want to watch a film from the '80s that's a dark psychological thriller,' (and getting) some results back ... you just couldn't have done in our previous experiences," said Peters. "So that's super-exciting." Advertising represents another opportunity for generative AI, Peters said, as brands and marketers seek to create compelling content. "We think these generative techniques can decrease that hurdle iteratively over time and enable us to do that in more and more spots," said Peters. (This story has been refiled to remove extraneous words at the end of paragraph 5) Reporting by Dawn Chmielewski in Los Angeles; Additional reporting by Lisa Richwine in Los Angeles; Editing by Matthew Lewis Our Standards: The Thomson Reuters Trust Principles., opens new tab

Netflix is already using generative AI in its original shows

Netflix admitted during its earnings call on Thursday that it used generative AI to create VFX in The Eternaut, a Netflix original from Argentina that was released in April 2025. The company's co-CEO Ted Sarandos said that generative AI was specifically used for a VFX shot in the post-apocalyptic drama, but the move is one of several ways Netflix is embracing AI. According to Sarandos, the creators of The Eternaut wanted to include a shot of building collapsing in Buenos Aires, and rather than contract a studio of visual effects artists to create the footage, Netflix used generative AI to create it. "Using AI powered tools, they were able to achieve an amazing result with remarkable speed," Sarandos shared during the earnings call. "In fact, that VFX sequence was completed 10 times faster than it could have been completed with... traditional VFX tools and workflows." The shot "just wouldn't have been feasible for a show on that budget," Sarandos says, as someone with some input on the show's budget. The executive says that The Eternaut features "the very first Gen AI final footage to appear on screen in a Netflix original series or film." Clearly, the show is also a prototype for how Netflix can avoid costs it doesn't want to swallow in the future. Workers in the entertainment industry have not taken kindly to the use of generative AI. Labor strikes -- including the recently resolved SAG-AFTRA video game strike -- have made securing protections against AI a central issue. The Oscar-nominated film The Brutalist came under fire in 2024 for using AI tools during production. Beyond that, whether generative AI models were illegally trained on copyrighted material is still an open question. Netflix plans to use generative AI to create ads for its ad-support Netflix subscription, and the company is reportedly testing a new search feature powered by OpenAI models. Using generative AI in production might seem par for the course for a company that's already invested, but it could help to normalize a technology that many creatives remain actively against.

Netflix enlists AI for first time to cut costs and boost creativity

Netflix says it has used visual effects created by generative artificial intelligence (AI) on screen for the first time in one of its original TV shows. The streaming giant's co-CEO Ted Sarandos said AI, which produces videos and images based on prompts, was used to create a scene of a building collapsing in the Argentine science fiction show, The Eternauts. He praised the technology as an "incredible opportunity to help creators make films and series better, not just cheaper." The use of generative AI is controversial in the entertainment industry and has sparked fears that it will replace the work of humans.

Generative A.I. Destroys a Building in Its Netflix Debut

To make a building collapse in Buenos Aires, Netflix creators turned to generative artificial intelligence for the first time onscreen. Ted Sarandos, one of Netflix's chief executives, said during the company's second-quarter earnings call on Thursday that the technology was a strong tool for creators and was accompanied by "real people doing real work." "We remain convinced that A.I. represents an incredible opportunity to help creators make films and series better, not just cheaper," Sarandos said. But for "The Eternaut," an Argentine show that incorporated the A.I. work, the decision also came with significant savings. The cost of creating a similar scene with traditional visual effects would not have been feasible within the show's budget, Sarandos said. The use of A.I., he said, allowed creators to complete the scene 10 times as quickly. "The Eternaut," a six-episode series adapted from a science fiction comic, debuted on April 30. In the series, the rare snow descending on Buenos Aires turns out to be fatal, killing anyone who comes into contact with the snowflakes. One survivor becomes determined to battle this threat, and others. The use of A.I. in movie and television production was a main concern in Hollywood in 2023, when SAG-AFTRA, the union representing tens of thousands of actors, went on strike for 118 days. The contract it reached included a specific provision about the use of A.I., guaranteeing that the technology would not be used to create digital replicas of actors' likeness without compensation or approval. While "The Eternaut" is the first use of generative A.I. onscreen, Netflix is also considering how to integrate the technology into other areas like member experience. Gregory Peters, one of the company's chief executives, said during the earnings call that there was "tremendous room and opportunity" for the use of new generative technology in personalization and recommendations. Netflix exceeded Wall Street's forecasts for the second quarter, earning $11.1 billion in revenue and $3.1 billion in net income. The most-watched film during that period was "Back in Action" starring Cameron Diaz and Jamie Foxx, and the British drama "Adolescence" was the most-watched television show.

Netflix Is Doubling Down on Ads and Dabbling in AI

The streaming giant says ]The Eternaut] is its first show to use AI for visual effects. When Netflix debuted its video streaming service back in 2011, it seemed like it would usher in the end of the television commercial. Fast-forward 14 years, and Netflix is now working on growing its own ad network and it thinks this is the future of the business. Well, that and AI.  Netflix execs told investors on Thursday that it is on track to double its advertising revenue this year. They did not say whether they would follow in the footsteps of other streaming networks and increase the ad load for existing customers, but they did announce that the service will be injecting interactive promotions into its content. The company first introduced its ad-supported plan in late 2022. Since then, the more budget-friendly subscription tier has grown to 94 million users, and Netflix is now eager to cash in on those eyeballs. In the first half of 2025 alone, viewers watched 95 billion hours on Netflix. The platform’s most-viewed series was the British drama Adolescence, which garnered 145 million views. Other top-performing shows included Squid Game, Ginny & Georgia, and the children’s show Ms. Rachel, hosted by the former YouTuber and advocate for children in Gaza. In a letter to shareholders, Netflix said its goal is to monetize this “engagement†not only from subscriptions but also from advertising revenue. That means Netflix needs to sell more ads, and it just made that easier by completing the global launch of its own first-party ad tech platform. “The rollout of our own ad tech stack, which helps deliver a bunch of features, and then our slate, which is generally amazing and includes a growing number of live events that advertisers are excited about,†co-CEO Greg Peters said during Thursday’s earnings call. Peters also said that interactive ads, which are already used by rivals like Amazon Prime Video and Hulu, are coming to Netflix later this year. Live programming is another part of the company’s ad push. Upcoming events include NFL games on Christmas Day and a high-profile boxing match between Canelo Ãlvarez and Terence Crawford. Big live events like these are attractive to advertisers due to their massive, real-time audiences. Netflix didn’t say exactly how much of the $45.2 billion in its estimated revenue for the year will come from ads. But some analysts expect that number to surpass $4 billion. Back in October, Peters acknowledged that “while ads won’t be a primary driver of revenue in 2025,†the company sees a real opportunity to “close that gap.†While Peters focused on ads, Netflix’s other co-CEO, Ted Sarandos, sounded pretty excited about another kind of tech â€" AI. “We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper,†Sarandos said on the call. He pointed to the company’s upcoming Argentinian sci-fi series El Eternauta, which features what he described as the “very first GenAI final footage to appear on screen†in a Netflix show or film. He said the show used AI-powered tools for a sequence showing a building collapsing in Buenos Aires. “And in fact, that VFX sequence was completed 10 times faster than it could have been completed with visual, traditional VFX tools and workflows,†Sarando said. And, also, the cost of it would just not have been feasible for a show in that budget.â€Â

Netflix admits to using GenAI to cut costs

Some days it feels like Netflix is doing everything it can to ensure users aren't happy with the service, from its new poorly-received UI to its push into ads. And thanks to the company's recently published Second Quarter 2025 Earnings Interview, we now know the company is already using generative AI to help create its content, citing cut costs as a positive, with plans to increase its use in future content. Certainly, GenAI is a boon for small productions with limited financial resources, but one has to wonder what the long-term effects will be when creativity is increasingly taken out of human hands. Netflix appears to be all in on GenAI Expect more Netflix content to use AI in the future Now that Netflix has released its Second Quarter 2025 Earnings Interview, everyone is busy dissecting what was discussed. The biggest takeaway is that the Co-CEO Ted Sarandos is happy with the results of GenAI used in the science fiction TV series The Eternaut, thanks to the time and money saved, but the other Co-CEO (why do I feel like I'm watching an episode of The Office?) Greg Peters is also keen to use GenAI "in more and more spots," leaving little to the imagination just what Netflix thinks of the use of AI when creating content. More is assuredly coming, with today's news feeling a lot like marketing for The Eternaut, now that it's on everyone's minds. Ultimately, content created with the help of AI doesn't sound all that appealing, but then again, I find the majority of Netflix's content often borders on boring at best, and it's doubtful AI is going to improve the writing and acting across its shows and movies. Perhaps there's a place for AI in some specific effects when working with a very low budget, but it's not like Netflix is hard up for money, begging the question why penny pinching is necessary in the first place, while entire livelihoods are tossed to the wayside. Chasing the bottom line sure doesn't sound like a surefire way to create intriguing content, but the exact opposite. While Netflix's first foray into GenAI isn't over the top by any means, having only created a building collapse for its The Eternaut show, this is clearly just the start of AI use in Netflix content. The question remains: Is anyone actually looking forward to more and more content created with generative AI besides creators looking to save a buck?

For the first time, Netflix uses GenAI for VFX in original series

Netflix has begun using artificial intelligence to produce scenes in its original content, marking a first for the streaming giant. The company revealed this development during its second-quarter earnings call recently. Co-CEO Ted Sarandos said the platform had "the very first GenAI final footage to appear on screen" in the Argentine science fiction series El Eternauta. The show, which follows survivors of a toxic snowfall, includes a dramatic sequence where a building collapses in Buenos Aires. That scene, Sarandos noted, was made using generative AI tools.

Netflix just gave its reasons for using generative AI in a TV show -- and it could be a watershed moment

AI video has come a long way in recent years. As the quality has risen, so have people's concerns about its implications for the creative industries. Now, it looks like the tech is making its way further into Hollywood with Netflix giving it its blessing. In an earnings call, Netflix co-CEO Ted Sarandos opened up on how the Netflix team behind the TV show The Eternaut utilised AI to speed up the production process. The use of AI appears in one scene in the show. It depicts a building collapsing and was made in collaboration between Netflix's internal production team and a group of producers using AI to help create the scene. Sarandos claimed that, through the use of AI, the scene was completed 10 times faster than would have been possible with traditional tools. It was also done at a much lower cost. "We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper. There are AI-powered creator tools. So this is real people doing real work with better tools," Sarandos said during the call. "Our creators are already seeing the benefits in production through pre-visualization and shot-planning work, and certainly visual effects. It used to be that only big-budget projects would have access to advanced visual effects like de-aging." Netflix's other CEO, Greg Peters, has also said that the company is using generative AI in other parts of the business. This includes personalization, search and advertisements. However, this is the first time Netflix has publicly used AI in the production of one of its shows. Just a few years ago, the quality of AI video was so poor that any reasonable person would have spotted it in a TV show or film. However, that is no longer the case. The likes of Google's Veo 3 have shown how far not just AI video has come but even AI audio generation. Recently, the first copyright-free AI video generator was announced. It claimed to be able to produce AI video at movie-level quality and aimed to help movie makers speed up the production process and reduce costs. While it is not clear which AI software Netflix used in this process, the quality was high enough to be undetectable. Netflix has seemingly become pretty comfortable with the use of AI. It uses AI art generators for the intro of its Marvel TV show Secret Invasion, and has been rolling out AI features across different parts of its platform. Based on the success of this latest project, and the company's positive attitude towards it, I wouldn't be surprised to see Netflix delve deeper into the use of AI in future projects.

Netflix Admits to Using AI Video in a Show for the First Time

Netflix has confirmed the use of generative AI in one of its original productions. While it is being reported that it's the first time the company has used the technology, that is likely not true. However, the news that the streaming giant turned to generative AI to create a video of a building collapsing in Buenos Aires during an episode of The Eternauts, an Argentinian sci-fi show, marks a shift in Netflix's willingness to embrace the controversial tech. Co-Chief Executive of Netflix, Ted Sarandos, says the implementation of AI allowed the production team to complete the scene roughly ten times faster than traditional visual effects methods. "The cost of it just wouldn't have been feasible for a show in that budget," Sarandos says per the BBC. "That sequence actually is the very first AI final footage to appear on screen in a Netflix original series or film. So the creators were thrilled with the result." But while this is the first time Netflix is publicly admitting to using generative AI, the company has been suspected of using it long before the summer of 2025. In April 2024, Netflix was accused of using AI to edit photos in the What Jennifer Did documentary and a 1980s sitcom was remastered and upscaled using AI technology -- which led to some very strange, garbled imagery in the show. It may well be the first time that Netflix has used generative AI to create a scene traditionally reserved for the VFX department -- but it would be difficult to know since the tech has gotten pretty good and the company's output is ginormous. Sarandos emphasizes that AI is an opportunity for creators to produce higher-quality content at lower costs. "We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper," he told analysts yesterday during the company's quarterly earnings presentation. The announcement comes amid broader industry debate over the role of AI in filmmaking. In 2023, concerns over the use of AI were central to a major Hollywood labor dispute involving the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA). The union called for stronger regulation to prevent AI from undermining human labor in the industry. Critics have warned that AI could displace jobs and exploit existing creative work without consent. Tyler Perry, for instance, halted an $800 million expansion of his Atlanta-based studio in 2024, citing concerns about the impact of generative AI tools on the workforce.

Netflix admits to using AI in one of its shows

Netflix isn't pretending to play coy about AI anymore. The streaming giant confirmed during its latest earnings call that it leaned on generative AI to create visual effects for The Eternaut, an Argentine post-apocalyptic drama. According to reporting from Engadget, co-CEO Ted Sarandos revealed that the creators of The Eternaut wanted a collapsing building sequence to anchor a key moment in the story. Instead of outsourcing the shot to a traditional VFX house, they turned to generative AI tools. "Using AI-powered tools, they were able to achieve an amazing result with remarkable speed," Sarandos said. "In fact, that VFX sequence was completed 10 times faster than it could have been completed with... traditional VFX tools and workflows." This doesn't appear to be a one-off either. Reports suggest that AI-generated ads will start appearing mid-stream in 2026 for Netflix's ad-tier subscribers. But The Eternaut marks a milestone. According to Sarandos, it contains "the very first Gen AI final footage to appear on screen in a Netflix original series or film." Predictably, not everyone is applauding. Hollywood's creative community remains uneasy -- and increasingly vocal -- about generative AI in production. Films like The Brutalist and Late Night with the Devil faced backlash for even light AI involvement. The issue is already on the radar of SAG-AFTRA, and it's poised to become a flashpoint in future industry negotiations.

Netflix uses generative AI in one of its shows for first time

Firm says technology used in El Eternauta is chance 'to help creators make films and series better, not just cheaper' Netflix has used artificial intelligence in one of its TV shows for the first time, in a move the streaming company's boss said will make films and programmes cheaper and of better quality. Ted Sarandos, a co-chief executive of Netflix, said the Argentinian science fiction series El Eternauta (The Eternaut) is the first it has made that involved using generative AI footage. "We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper," he told analysts on Thursday after Netflix reported its second-quarter results. He said the series, which follows survivors of a rapid and devastating toxic snowfall, involved Netflix and visual effects (VFX) artists using AI to show a building collapsing in Buenos Aires. "Using AI-powered tools, they were able to achieve an amazing result with remarkable speed and, in fact, that VFX sequence was completed 10 times faster than it could have been completed with traditional VFX tools and workflows," he said. He said that the use of AI tools allowed Netflix to fund the show at a much lower cost than is typical for a big-budget production. "The cost of [the special effects without AI] just wouldn't have been feasible for a show in that budget," Sarandos said. The use of generative AI in the entertainment industry has sparked fears of job cuts, particularly in areas such as the production and special effects industry. In 2023, AI was a key sticking point in dual strikes by Hollywood actors and writers, which secured agreements to ensure the new technology stays in the control of workers rather than being used to replace them. Sarandos said: "This is real people doing real work with better tools. Our creators are already seeing the benefits in production through pre-visualisation and shot planning work, and certainly visual effects. I think these tools are helping creators expand the possibilities of storytelling on screen, and that is endlessly exciting." His comments came after Netflix reported $11bn revenue for the quarter to the end of June, a 16% year-on-year increase. The company said that its better-than-expected performance was boosted by the success of the third and final series of the Korean thriller Squid Game. Netflix expects its small but fast-growing advertising business to "roughly double" in size this year. "Netflix's better than expected quarter is a result of great content, increased pricing, and advertising momentum hitting all at once," said Mike Proulx, the vice-president of research at Forrester. "While there's still work to be done to bolster its ad capabilities, the hardest part is in Netflix's rear-view mirror with the full rollout of its proprietary ad tech platform."

Netflix uses generative AI VFX in a show for the first time, as CEO says 'the cost just wouldn't have been feasible for a show on that budget'

The Eternaut, an Argentine sci-fi show, used generative artificial intelligence to create VFX of a building collapsing Netflix used AI-generated visual effects for the first time in a TV show or movie this year, and co-CEO Ted Sarandos is pretty pleased with the result. Speaking to investors on Thursday (July 18), Sarandos revealed Argentinian sci-fi show, The Eternaut, is the first Netflix production to use AI to generate a VFX (visual effects) sequence. He said: "The creators were thrilled with the result. We were thrilled with the result," he said. "And more importantly, the audience was thrilled with the result. So, I think these tools are helping creators expand the possibilities of storytelling on screen, and that is endlessly exciting." The scene in question shows a building collapse in Buenos Aires after coming into contact with toxic snowfall, and according to Sarandos, given the budget of the show, the scale of the effects needed to pull off the scene wouldn't have been possible without the use of AI. In fact, Sarandos even confirmed that using AI was not only a cost-saver, but incredibly efficient too. "That VFX sequence was completed 10 times faster than it could have been completed with visual, traditional VFX tools and workflows," he said. Considering just how happy Netflix's head honcho and the creators behind The Eternaut are with the results, the Argentinian-made TV series could be the pioneer in AI-generated Netflix effects, opening up opportunities for other productions to follow suit. Hollywood's disdain towards AI couldn't be more evident. After all, the technology was a huge point of contention in the Hollywood actors' and writers' strikes that plagued the entertainment industry in 2023. Now, two years on, we're starting to see AI find its feet in the world of TV and movie production, and despite the negative connotations of the word, it might end up being a good thing for creators working on a smaller budget. Sarandos said: "This is real people doing real work with better tools. Our creators are already seeing the benefits in production through pre-visualisation and shot planning work, and certainly visual effects. I think these tools are helping creators expand the possibilities of storytelling on screen, and that is endlessly exciting." Netflix reported a successful quarter, with over $11 billion in revenue, up nearly 20% compared to the previous year. I might be skeptical, but I'd expect this trial of using AI to generate scenes could spawn into a bigger beast if the profit margins are high enough to ride out any backlash. Using AI monitored by the creators of a show for a scene is one thing, but at what point does it cross the line? And when it does, will companies like Netflix scale back or go full steam ahead, implementing AI into all the best TV shows and movies?

Disney and Netflix are quietly using the same generative AI startup - here's why the rest of Hollywood is circling

An increasing number of studios are experimenting with the tech Disney is reportedly the latest Hollywood studio to quietly use the same generative Artificial Intelligence (AI) tool as Netflix - and it's easy to see why others have been attracted to the controversial tech as they cite time and cost saving benefits on production. According to Bloomberg, The Walt Disney Company has been testing Runway AI's tools, and has even gone as far as to talk to the startup about possibly ysing its generative AI tools in movies and TV shows. While a Disney spokesperson has confirmed there are no plans to integrate the software, it's just another sign of how studios are becoming more comfortable with utilizing AI. It's no secret that Netflix is using AI, for instance. Co-CEO Ted Sarandos openly confessed as much - during the company's earnings call last week - when he revealed AI was used to generate a VFX (visual effects) sequence in an original production for the first time in dystopian drama The Eternaut. At the time, it wasn't disclosed whether AI software was used, but a source has reportedly confirmed to Bloomberg that it was indeed Runway AI's tech. To be clear, The Eternaut was not the first time that Netflix had used AI. It unsuccessfully tried to fix 80s sitcom A Different World with AI upscaling and was caught up the AI Oscars controversy after Emilia Pérez was criticized for using voice enhancement tech. Still, it marks the first time that Netflix has used generative AI in one of its own original projects. The reason why that's notable is because generative AI has the potential to completely upend the entire industry. There's a reason why the Hollywood actors' and writers' strikes in 2023 were so heavily focused on putting in place safeguards to protect the livelihoods and creative integrity of VFX artists and animators. It's one thing to mess around with Runway's AI to turn your home videos into Hollywood blockbusters, but for a billion dollar industry to start cutting corners is a slippery slope that many are rightfully concerned about. It's not just Netflix and Disney that are reportedly working with Runway AI. Two years ago, Variety revealed that VFX artist Evan Halleck used the startup's tools in Everything Everywhere All At Once to remove the background from certain scenes. The same justifications were used then as they're now, with Halleck claiming that it was cheaper and faster to use AI tools than more time consuming processes like rotoscoping. Sarandos recently echoed these sentiments when he said "that the VFX sequence [in The Eternaut] was completed 10 times faster than it could have been completed with visual, traditional VFX tools and workflows". At the time, it was also reported Runway was even working The Late Show with Stephen Colbert. "They're using it almost for on a daily basis to translate hours of work. The team is able to iterate their ideas faster, and it's helping them augment their creative workflow," Runway CEO Cristóbal Valenzuela told Variety. In the years since, Hollywood has begun to warm to AI even faster then some may have initially predicted. Indeed, it's been reported that Runway AI inked a deal with Lionsgate in September 2024. Vice chairman of the studio Michael Burns says the tie-up will help it produce "movies and television shows we'd otherwise never make". Since then, more production companies have jumped on the bandwagon. The creator and co-showrunner of Amazon's House of David , Jon Erwin, revealed to Variety that various AI tools were used to create a scene in the show, including Runway's AI video generator. Just last month, Runway AI also partnered with AMC Networks to use its tools to help visualize a TV show that hasn't yet been produced as well as to generate marketing images, The Hollywood Reporter (THR) reported. "It's kind of a natural transition for every entertainment and media company; they need to think through what AI means for them," Valenzuela told THR when asked about the AMC partnership. It seems inevitable that more studios will continue to work with Runway AI as more become comfortable making it publicly known, and it looks like the startup isn't stopping at Hollywood. A new text-to-video game AI generator is on the way that will no doubt have a huge impact on the gaming industry once it's further developed, according to The Verge. Could we see Runway AI make the same inroads in the gaming industry? I'd look to Hollywood as the blueprint.

Netflix chief champions generative AI: Why that could spell trouble for artists

The AI revolution in Hollywood is here, whether you like it or not. Instead of running from generative artificial intelligence (GenAI), Netflix embraces it. After Netflix revealed its impressive second-quarter earnings, co-CEO Ted Sarandos shared the streamer's plans involving AI and how the company plans to use it going forward. While much of the conversation revolves around cost, Sarandos believes AI will improve the quality of Netflix's movies and TV shows. Recommended Videos "We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper," Sarandos told financial analysts via The Hollywood Reporter. "So this is real people doing real work with better tools. Our creators are already seeing the benefits in production through pre-visualization and shot planning work, and certainly visual effects." Netflix has already incorporated AI into its filmmaking strategy. In April, the streamer released The Eternaut, an Argentine sci-fi drama based on the comic by Héctor Germán Oesterheld and Francisco Solano López. In the show, toxic snowfall eliminates most of the population. The survivors eventually learn that the murderous snowstorm is only the first part of an alien invasion. Using GenAI, Argentinian VFX artists collaborated with Netflix to depict a building collapse in Buenos Aires during one of the episodes. This is the first-ever GenAI sequence to air in a Netflix original series or movie. Judging by Sarandos' positive reaction, this won't be the last time Netflix utilizes AI. "Using AI-powered tools, they were able to achieve an amazing result with remarkable speed, and, in fact, that VFX sequence was completed ten times faster than it could have been completed with traditional VFX tools and workflows," Sarandos explained. As Netflix reaps the rewards of GenAI, other companies have experienced the negative side effects. Disney and Universal filed a copyright lawsuit against the GenAI program Midjourney. The studios cited Midjourney as the "quintessential copyright free-rider" and a "bottomless pit of plagiarism." Copyright issues and automation are two of the many concerns shared by creators when discussing AI. Nadeem Sarwar, a tech and science journalist at Digital Trends, believes Netflix's use of AI will only hurt, not benefit, creators. "The whole focus on 'speed' is essentially Netflix trying to speed up the process of creative iteration," Sarwar explained. "This also means robbing people of the painstaking work they would otherwise do meticulously, but in more time. It only benefits Netflix and not artists." With advances in technology, AI isn't going away anytime soon. How it plays out in the future is the fear that keeps artists up at night. "The trend was already inevitable," Sarwar added. "Marvel did it and got flak for it. We thought Netflix and other studios would learn. They clearly are not going to."

Netflix Uses Generative AI in TV Show for First Time - Decrypt

There is widespread concern among film industry professionals over the threat posed by AI to their jobs. Netflix has used artificial intelligence in one of its TV shows for the first time. AI-powered tools were deployed during the production of "The Eternaut," an Argentinian drama that shows the aftermath of a toxic snowfall that's killed millions of people. On an earnings call, the streaming giant's co-CEO, Ted Sarandos, said the technology "represents an incredible opportunity to make films and series better, not just cheaper." The creators of "The Eternaut" wanted to include a scene where a building collapses in Buenos Aires, and Sarandos said AI meant "they were able to achieve an amazing result with remarkable speed." "In fact, that VFX sequence was completed 10 times faster than it could have been completed with traditional VFX tools and workflows," he told analysts. Sarandos argued that AI could prove especially useful for bringing scenes to life that otherwise wouldn't be possible because of budget constraints. "The creators were thrilled with the result. We were thrilled with the result. And more importantly, the audience was thrilled with the result," he added. Fellow co-CEO Greg Peters says generative AI could also have an impact on improving user experience -- and Netflix has been trialing a new tool that allows viewers to request recommendations using their voice, such as: "I want to watch a film from the 80s that's a dark psychological thriller." "If we do a better job there, that means every dollar that we spend means more value back to our members by connecting them with the titles that they're truly going to love," he said. In its most recent annual filing to the Securities and Exchange Commission, Netflix warned its business could be adversely affected if competitors "gain an advantage" by using generative AI tools more effectively. While Hollywood executives argue AI has the potential to unleash creativity, and bring ideas to life, many in the entertainment sector remain fearful of the impact it could have on their livelihoods. Last year, a report by CVL Economics warned that generative AI could cause "significant disruption" to 204,000 film and TV jobs between now and 2027 -- disproportionately affecting entry-level roles.

Netflix Admitted to Using Generative AI in an Original Series, and I Think I Found It

The writing's been on the wall for a while. Unless you haven't seen a movie for the past decade or more, you know how important VFX has become to the creation of TV shows and movies. Those VFX come at a very high cost, and take a lot of man hours to produce. With generative AI video getting so good that most people have probably already been fooled by it at least once, it was only a matter of time before big studios started incorporating it into their workflows. Netflix, in fact, just bragged about doing so, months after a show came out and nobody spotted its use of AI. Yep, it seems that AI art is finally starting to become indistinguishable from human-made art, but that doesn't mean the issue is cut-and-dry. In an earnings call on Thursday, Netflix co-CEO Ted Sarandos discussed how the team behind the streamer's adaptation of Argentinian comic book The Eternaut used AI to speed up its workflow. Discussing a sequence in the show that depicts a building collapsing in Buenos Aires, Sarandos said "That VFX sequence was completed 10 times faster than it could have been with traditional VFX tools and workflows," and elaborated that it "actually is the very first AI final footage to appear on screen in a Netflix original series or film." After seeing it myself (I think), I have thoughts. There are two takeaways from Sarandos' statement. First, generative AI is finally making its way into your Netflix shows, and given that Sarandos said The Eternaut's creators "were thrilled with the result," there's likely to be more. Second, going by the use of the word "final," it's almost certainly been used behind-the-scenes in your shows for a while now. It's time to figure out what you think about it. To be fair, Netflix isn't the first streamer to use AI. Disney+'s Secret Invasion series used pretty noticeable AI art for its credits, and faced immediate pushback for it. But The Eternaut has been streaming since April, and it's telling that nobody really caught on until now. I'll grant that it's maybe a bit unfair to compare a Marvel production to an adaptation of a classic comic (this original work debuted in the 1950s) from an Argentinian magazine. Fewer eyes simply may have been around to see the AI effects, and Netflix actually cites the show's smaller-scale production as one of the reasons for its use of AI, with Sarandos saying, "the cost of it [doing the effect without AI] just wouldn't have been feasible for a show in that budget." What's perhaps most concerning is that, even after watching the AI-generated sequence myself, I'm not sure I would have noticed that it was made by AI unless I already knew to look for it. I'll admit that I haven't watched the entire show from front-to-back in real time, but I did scrub through the episodes multiple times, and I believe the most likely culprits are a few shots of buildings on fire that start at around 15:25 in episode 4. That I was able to pinpoint these might mean that generative AI video still isn't entirely foolproof, but I could also be wrong. The tells? Well, the obvious one is that these are the only shots I could find that closely resemble what Sarandos described. Again, if I hadn't been told to look for AI, I'm not sure it would have jumped out to me. It's nothing special, but perhaps that's the trick -- unlike the trippy AI credits in Secret Invasion, the AI here looks a lot like the handcrafted, low-budget (I say that affectionately) aliens that show up just a few minutes earlier. But if you know to look for AI, there are still a few other giveaways here. There are no human characters in these scenes (which means no weird hands) and cuts are either quick or subjects are far away and out-of-focus. Essentially, they look like generic, contextless clips that were stitched into the episode with little connective tissue. But they also don't look like hallucinations. Lifehacker's typical advice for spotting AI footage -- slowing down and looking for odd physics or strange body movements -- don't really apply here. My colleague Stephen Johnson has mentioned that you can cross-check against social media to see if AI use has been reported on a suspicious video -- that may work for a viral video online, but if a production company stays quiet about using AI and keeps the effects subtle, it can be much harder to spot. All this uncertainty points to a wider problem with how viewers adapt to AI in TV. While Sarandos says this is the first AI effect to hit Netflix, the company has previously been accused of using AI in the true crime documentary What Jennifer Did. The company denied these claims, but that these arguments are even being had means audiences are starting to be unsure of whether they can trust their eyes -- an especially big issue for genres like true crime, and something that would certainly make an AI skeptic like me start to feel paranoid while watching. But even in a best-case scenario like this -- subtle AI use in a fictional work that helps a small-scale operation save some time -- I'm still a bit worried. On one hand, Sarandos argues that Netflix is "convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper." One could argue that, if you can't spot the difference between AI and handcrafted work, what's the harm? Especially in a low-budget show like this, which might not have been able to achieve these effects otherwise. On the flipside, apart from the ethical issues with downscaling on VFX artists or using copyrighted materials to train AI, there are still reasons for viewers to be wary. There are the awkward cuts I pointed out earlier, but it's also worth wondering if these effects, which could have been omitted without hurting the story, needed to be there at all. The Eternaut's comic book art is full of thoughtful, detailed linework, all done with a purpose. When you read it, you know that's what the artist wanted you to see, and every line represents a choice. With an AI clip, details may only be there because that's what the model thinks scenes like that are supposed to look like. As a detail-oriented viewer, I would hate to spend time trying to figure out why a director framed a shot the way they did, only to find out months later that a computer just spat it out based on a model of other, similar scenes. And while it may start with smaller shows, given how successful this was for Netflix (the show has a 96% rating on Rotten Tomatoes), I'd expect to start seeing it elsewhere soon. Whatever excuses the streamer gives, this isn't something you can ignore.

'We remain convinced that AI represents an incredible opportunity': Netflix used AI special effects in original series instead of paying VFX artists

If the VFX in one scene of The Eternaut look off, it's probably because they were made with AI. "Using AI powered tools, they were able to achieve an amazing result with remarkable speed," Netflix co-CEO Ted Sarandos said in a July 17 earnings call. He was referring to the recent Argentinian Netflix original The Eternaut, which includes a scene with AI-generated visual effects showing a building in Buenos Aires collapsing. "The cost of it just wouldn't have been feasible for a show on that budget," Sarandos said of the decision. "So that sequence actually is the very first GenAI final footage to appear on screen in a Netflix original series or film." The scene in question takes place in episode 6 of The Eternaut, at approximately 59:49 during a series of flashback shots in the final ten minutes of the show. There are no readily available clips of it online at the time of writing, but you can skip to it on Netflix if you want to see for yourself. The AI-generated bit is easy to miss since the collapsing building is only seen in two shots that are each hardly a second or two long. Considering how brief this segment is, it's clear that Netflix was just that keen to tout the tools' usage in any context for marketing purposes. Generating the VFX with AI was reportedly "10x faster" than it would have taken for a traditional VFX team. While it sounds like the production team may have hired a VFX team for this scene if they had had the budget for it, Netflix claims using AI isn't just about saving money. As Sarandos went on to state, "We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper. They're AI-powered creator tools. So this is real people doing real work with better tools." This is just the latest turning point in Netflix's shift toward AI-back in May, Netflix announced a plan to start rolling out AI-generated ads in 2026. Clearly, the streamer isn't backing off on AI, and it just goes to show that actors, writers, artists, and creators are right to be worried about their careers and the future of the entertainment industry. On one hand, artists using tools with AI elements to speed up processes like creating visual effects isn't anything new. However, when AI is used to avoid paying real artists, you risk losing the human touch that's crucial to the creative process (and push talented creators out of the industry). That's exactly what many creatives and unions have been trying to prevent over the past few years, like IATSE, which represents behind-the-scenes workers in the entertainment industry, including a growing number of VFX teams. More and more VFX artists in the union are negotiating for protections against AI, like teams at Marvel and Disney and, more recently, the Saturday Night Live VFX crew.

Netflix slipped something new into your favorite show

For the first time, A hit Netflix show used something unusual to craft a final scene: AI. On its quarterly earnings call, the company's co-CEO Ted Sarandos highlighted the use of generative AI in the sci-fi series El Eternauta (The Eternaut), which debuted on April 30. The post-apocalyptic series adapts an Argentinian comic of the same name, following survivors of a toxic snowfall that blankets Buenos Aires. The scene in question shows a building collapsing dramatically, a feat that Sarandos argues wouldn't have been in budget without leaning on AI. Sarandos says that Netflix's Eyeline Studios partnered with the show's creative team to incorporate "virtual production and AI-powered VFX" into a final scene. "Using AI powered tools, they were able to achieve an amazing result with remarkable speed and in fact, that VFX sequence was completed 10x faster than it could have been completed with... traditional VFX tools and workflows," Sarandos said. While El Eternauta might be Netflix's first foray into using AI to generate final footage, the tech-forward company likely already incorporates AI into other workflows.

Netflix just used generative AI for the first time in a new show

Netflix has implemented visual effects generated by artificial intelligence (AI) for the first time in its original series, The Eternauts. Co-CEO Ted Sarandos highlighted that AI helped create a building collapse scene in the show, according to BBC. This technology enabled production teams to produce sequences more quickly and at lower costs. Concerns persist in the entertainment industry regarding AI's potential to generate content without proper consent from original creators and its potential to replace human jobs. Mr. Sarandos conveyed his thoughts during Netflix's announcement of a 16% revenue increase to $11 billion (£8.25 billion) for the quarter ending in June, with profits rising from $2.1 billion to $3.1 billion. This growth was attributed to the success of the third season of Squid Game, which garnered 122 million views. Regarding AI's role, Sarandos indicated that it allows lower-budget productions to utilize advanced visual effects, stating that the technology facilitated the completion of the Buenos Aires building collapse sequence ten times faster than traditional methods. "The cost of it would just wouldn't have been feasible for a show in that budget. That sequence actually is the very first [generative] AI final footage to appear on screen in a Netflix original series or film. So the creators were thrilled with the result," Mr. Sarandos remarked. AI was a significant concern during the Hollywood strike in 2023, where the Screen Actors Guild-American Federation of Television and Radio Artists union advocated for stricter regulations regarding AI usage.

Netflix Co-CEO Says the Company Used AI on a TV Show for the First Time: 'Completed 10 Times Faster'

Netflix used AI to shape one of its TV shows for the first time, marking a significant milestone in the technology's involvement in film. Netflix co-CEO Ted Sarandos said on Thursday that the company used footage generated by AI in the 2025 Argentine science fiction series "El Eternauta" ("The Eternaut"), a show that follows survivors of a toxic snowfall. For the six-episode show, which arrived on Netflix on April 30, Netflix's visual effects artists tapped into AI to create a scene showing a building collapsing in Buenos Aires. That visual effects sequence "was completed 10 times faster" than it would have with standard tools and workflows, Sarandos said in a conference call on Thursday after Netflix delivered its second quarter financial results. Netflix reported a strong quarter, with revenue of $11.08 billion, a 16% year-over-year increase, and $3.13 billion in profit. Related: 'We're Going to Be Fighting for the Survival of Humanity': Netflix Co-Founder Donates $50 Million to Alma Mater for AI Initiative According to Sarandos, "AI represents an incredible opportunity" for creators and presents a chance to make movies and TV shows "better, not just cheaper." The AI-generated scene in "El Eternauta" resonated with the show's audience, he said. "This is real people doing real work with better tools," Sarandos said on the call. "The creators were thrilled with the result. We were thrilled with the result, and more importantly, the audience was thrilled with the result." Netflix co-CEO Greg Peters also mentioned on the call that Netflix is incorporating AI into other aspects of its business, including personalization, search, and ads. Netflix introduced a new AI-powered search tool in May that allows users to find shows using prompts like, "I want something funny and upbeat." Netflix also reported on Thursday that its subscribers watched over 95 billion hours worth of TV shows and movies through the platform in the first half of the year, a 1% increase from a year earlier. Non-English content made up one-third of overall viewing time. Related: NASA Will Start Live Streaming on Netflix Soon. Here's What to Expect. So, how is AI use in shows different from CGI? Movies have been using CGI, or computer-generated imagery, for decades, starting with Alfred Hitchcock's 1958 film Vertigo. CGI is a tool that allows professionals to create content using computer software, giving them manual control over elements like textures and lighting. CGI means that users create objects themselves. Generative AI, meanwhile, automatically generates objects based on a prompt. AI figures out on its own how to accomplish what is asked for in the prompt, making it less hands-on than CGI. This also means that the user has less control over an AI-generated output compared to CGI.

Netflix Might Be Using Runway's AI Video Tools in Content Production

Walt Disney is reportedly also testing Runway's AI video tools Netflix is reportedly testing the use of artificial intelligence (AI) tools in content production. As per the report, the California-based streaming giant is using Runway AI's video tools, but it is not clear in what capacity the company is using the AI tools. The report comes just days after the company's co-CEO stated in an earnings call that AI-generated videos were used in the show The Eternaut. Apart from Netflix, Walt Disney is reportedly also testing waters with Runway's AI tools for its production house. According to a Bloomberg report, Netflix has begun using Runway AI's tools in content production. Citing an unnamed person familiar with the matter, the report claimed that the streaming giant is currently just testing whether the AI firm's video generation software will be suitable for Netflix's production workflow. The report did not mention whether Netflix was planning to generate entire scenes using the technology or was looking at it to bring down its VFX costs. Additionally, it is also not known whether Runway's AI tools would be used in the post-production and editing tasks. Apart from this, Walt Disney is reportedly another studio which is testing Runway's video generation tools. Bloomberg claimed that the company has also discussed the possibility of using the New York-based AI firm's technology. However, the same source also told the publication that Walt Disney does not plan to integrate the AI software into its content production workflow. AI-generated tools are slowly making their way towards Hollywood studios. Netflix co-CEO Ted Sarandos recently admitted using AI videos for The Eternaut, highlighting how it was both faster and cheaper than traditional VFX. Notably, Netflix did not use Runway's AI tools for this show, the report stated. Amazon's House of David is another show where Runway's AI video models were used to generate frames in certain scenes. As Hollywood opens up to AI-powered video generation, many actors and writers continue to protest the inclusion of the technology in filmmaking. Last year, the Writers Guild of America (WGA) urged major studios and Netflix to take immediate legal action against any company "that has used our members' works to train AI systems."

Netflix May Have Added AI Scenes in This Popular Sci-Fi Show

This is the first time Netflix has admitted to using AI scenes Netflix has reportedly admitted to using artificial intelligence (AI) videos for one of its sci-fi shows. As per the report, the streaming giant generated a scene in the series 'The Eternaut' to show a collapsing building. The company revealed the information during its Q2 2025 earnings call. This is the first time Netflix has acknowledged using AI for the production of its original shows, highlighting that video generation AI models are now reaching the maturity where the technology can be used for large-scale movie and show production. According to The Verge, the co-CEO of the company, Ted Sarandos, admitted to using AI for one of the platform's original shows during the earnings call. The executive reportedly claimed that using AI for one of the scenes turned out to be faster than getting it done using traditional VFX. While the co-CEO said to have refrained from naming any AI models, he detailed the scene where AI-generated videos were used. The Eternaut is the company's latest post-apocalyptic sci-fi mystery thriller, and its first season (comprising eight episodes) was released on the platform on April 30. In the series, a scene shows a building in Argentina's Buenos Aires collapsing as a train slams into it. Instead of shooting it traditionally and adding the effects via VFX, Netflix sought AI's help and the entire scene was generated synthetically. Sarandos reportedly told the shareholders, "That VFX sequence was completed 10 times faster than it could have been completed with traditional VFX tools and workflows. Also, the cost of it just wouldn't have been feasible for a show in that budget." The Netflix co-CEO reportedly also highlighted that the company is now convinced of the capabilities of AI, and plans to use it again in the future to help creators "make films and series better, not just cheaper." Netflix is not the only production company to use AI in filmmaking. In 2024, epic period drama The Brutalist used AI to improve the actors' Hungarian dialogues. AI was also used to bring some architectural designs to reality. The movie was later nominated for Best Picture at the Oscars 2025.

Netflix chief claims generative AI will make their content "better", and a show with a near-perfect Rotten Tomatoes score is already using it

Netflix CEO Ted Sarandos thinks that generative AI won't just make the streamer's shows and movies cheaper to make - it'll make them better, too. "We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper," Sarandos said during the company's Q2 results presentation (via The Hollywood Reporter). "So this is real people doing real work with better tools. Our creators are already seeing the benefits in production through pre-visualization and shot planning work, and certainly visual effects." Generative AI in filmmaking (and other creative industries) has been a topic of debate lately. Creatives are concerned with losing their work to algorithms, as well as issues of copyright (Disney and Universal recently called AI a "bottomless pit of plagiarism" after the two studios teamed up to sue AI company Midjourney). Oscar-nominated movie The Brutalist also came under fire earlier this year when it was revealed AI had been used in post-production. One Netflix original has already used it, though. Argentinian sci-fi series The Eternaut was released this past April and, based on the comic book of the same name, follows the survivors of a deadly snowfall caused by alien forces. The show currently has a near-perfect score of 96% on Rotten Tomatoes. Sarandos highlighted one scene in the show that used generative AI to show a building collapsing in Buenos Aires, the first of its nature to be included in a Netflix original movie or show. "Using AI-powered tools, they were able to achieve an amazing result with remarkable speed and, in fact, that VFX sequence was completed ten times faster than it could have been completed with traditional VFX tools and work flows," he said.

Netflix uses AI to speed up movie production and launch new features

Netflix is using Artificial Intelligence in film and television production. Ted Sarandos shared this during an earnings call. AI helped create a building collapse scene in 'El Atonata' faster and cheaper. AI is also used for search, ads, and content personalization. Interactive AI ads will launch in the second half of 2025. Netflix is now using AI in making movies and TV shows, the company said on Thursday. Co-CEO Ted Sarandos shared this news during Netflix's earnings conference call. He said Netflix used AI in an Argentine show called "El Atonata" to create a scene where a building falls down. That building scene was finished 10 times faster and also cost less using AI than normal VFX tools. Sarandos said AI is not replacing humans, but helping real creators work faster and better. He said tools like pre-visualization, shot planning, and visual effects are all getting easier with AI. ALSO READ: Explosive claim: Ex-casino boss alleges Trump and Epstein brought underage girls to casino floor Sarandos also said advanced effects like de-aging were once only for big movies, but now AI makes it easier for more creators. Co-CEO Greg Peters said Netflix is also using GenAI in other areas like search, ads, and personalizing content for users. He also said interactive ads powered by AI will launch in the second half of 2025. Netflix already launched an AI search feature earlier this year. In the second quarter, Netflix made $11.08 billion in revenue, which is 16% more than last year. ALSO READ: Crypto whale issues chilling warning: Don't hold too long on Bitcoin, Ethereum, or XRP The company also made a profit of $3.13 billion. People watched over 95 billion hours of content on Netflix in the first half of 2025. About one-third of all that content watched was non-English shows or movies. Q1. Is Netflix using AI in its movies and shows? Yes, Netflix is now using AI to help create scenes faster and cheaper, like in the show El Atonata. Q2. What other ways is Netflix using AI in 2025? Netflix is using AI for search, personalizing content, and plans to launch interactive ads powered by AI.

Generative AI is more than just a cost saver for us: Netflix Co-CEO Ted Sarandos - The Economic Times

Netflix co-CEO Ted Sarandos believes generative AI is more than just a tool to reduce costs; he sees it as a way to boost creativity in film and TV production. During the company's post-earnings conference call, Sarandos said that Netflix featured "the very first GenAI final footage to appear on screen" in the Argentine series El Eternauta, which tells the story of survivors of a deadly, sudden snowfall. For the show, Netflix's in-house production team collaborated with producers and used AI to create a scene of a building collapsing in Buenos Aires. Sarandos highlighted that the scene was completed ten times faster and at a lower cost than with traditional visual effects, thanks to AI. "We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper," Sarandos said. "There are AI-powered creator tools. So, this is real people doing real work with better tools," he said, adding that creators are already benefiting from AI during pre-visualisation, shot planning, and in visual effects work. Co-CEO Greg Peters also noted that Netflix is using generative AI beyond content creation, including personalisation, search, and advertising. He revealed the company plans to introduce interactive ads in the second half of the year. Back in May, Reuters reported that the streaming giant had rolled out generative AI tools on its iOS app, enabling users to search for shows and films using natural, conversational language. Last week, Netflix reported that it had posted $11.1 billion in revenue and $3.1 billion in net income for the second quarter. Viewers streamed over 95 billion hours in the first half of 2025, a 1% rise compared to the same period last year.

Netflix Ushers in a New Creative Era with Generative AI Debut in 'El Eternauta'.

For the first time in its history, Netflix has officially used generative AI in a fictional show, El Eternauta. This groundbreaking moment isn't just about visual effects -- it's a larger signal that AI is being integrated as a core creative partner in global content production. The implications are vast: faster workflows, smarter budgets, and an evolution of storytelling itself. Netflix's adaptation of El Eternauta, the legendary Argentine graphic novel by Héctor Germán Oesterheld, was always going to be ambitious. The story centred around a mysterious snowfall in Buenos Aires that brings death from above, demanding high-stakes, cinematic worldbuilding. But instead of relying solely on traditional VFX pipelines, Netflix made a daring choice: integrating generative AI for the very first time in a show's post-production process. The scene that marks this innovation? A building collapsed in Buenos Aires. Rather than hiring dozens of VFX artists or outsourcing to high-cost post-production houses, Netflix turned to its in-house Eyeline Studios, using AI to generate the scene in a fraction of the time and cost. This wasn't about cutting corners. It was about proving that a new creative paradigm had arrived. Ted Sarandos, Netflix's co-CEO, revealed during the Q2 2025 earnings call that the building collapse was generated using AI and completed in "a tenth of the time and cost" of traditional visual effects. That single phrase isn't just a passing remark -- it's an executive roadmap. Netflix has always championed data-driven content strategy, and this is the next logical extension: optimizing not just what to make, but how to make it. From a corporate standpoint, this is a case study in operational efficiency. AI allows Netflix to hit aggressive content deadlines, control production overheads, and enable higher creative risk without higher financial risk. For a platform pumping out hundreds of originals annually, generative AI doesn't just add value -- it multiplies it. There's no shortage of anxiety around AI in creative industries, especially after the Hollywood strikes of 2023. Writers and actors demanded protections from AI's potential to replace human labour. But Netflix's use of AI in El Eternauta doesn't sideline artists -- it empowers them. According to Sarandos, the AI-generated scene was created by "real people doing real work" with the help of better tools. This distinction is critical. In the El Eternauta production pipeline, AI acted as a force multiplier -- amplifying what human artists imagined, speeding up labour-intensive sequences, and allowing the production team to spend more time on storytelling, character, and narrative nuance. Rather than automating away creativity, Netflix is making the case for augmented creativity, where AI picks up the tedious tasks and humans focus on what they do best: emotional depth, originality, and vision. El Eternauta isn't just any series. It's a cultural juggernaut in Latin America, deeply tied to Argentina's political history and national psyche. Producing a show with that level of regional gravity, and doing it justice on a global platform, was never going to be easy, especially without blockbuster-level budgets. Generative AI made it possible. The technology democratizes scale, allowing regional stories to be produced with Hollywood-level polish. This matters in Netflix's broader international growth strategy, where local storytelling needs global-grade production. AI can bridge the gap between vision and feasibility, allowing more shows like El Eternauta to cross borders -- and expectations. What's especially significant about this AI deployment is that it's not an isolated test -- it's a preview of where Netflix is headed. Generative AI is already being tested across the company's workflow. Co-CEO Greg Peters said they're experimenting with AI-generated trailers, visual marketing assets, and even natural-language search prompts like, "Show me romantic thrillers from the 1990s." That integration points toward a multi-layered AI transformation: not just what's on screen, but how it's found, recommended, marketed, and monetized. Netflix isn't just tweaking one corner of its operations -- it's retrofitting its entire content ecosystem for an AI-assisted future. And the long-term payoff is massive: faster go-to-market timelines, smarter asset creation, more personalized user journeys, and ultimately, higher audience engagement -- all without dramatically increasing spend. Netflix appears to be playing within those guardrails. The El Eternauta case shows that when AI is used transparently, ethically, and as a support tool -- not a replacement -- it can unlock massive creative value. The company's public stance reflects a desire to build AI into the process without displacing the people who make stories human. The success of El Eternauta is not about a single scene. It's about what that scene represents: Netflix's willingness to embrace next-gen tools without compromising on creative integrity. The result is a powerful signal to creators, investors, and competitors alike that AI is no longer a back-office experiment. It's a production reality. Audiences might never notice that one scene was AI-generated -- and that's the point. When done right, AI enhances the story without distracting from it. And for Netflix, that invisible efficiency is its greatest asset. This is more than just a smart way to cut costs or speed up timelines. It's the future of global entertainment -- more accessible, more diverse, more scalable, and powered by a new creative partnership between humans and machines.

Netflix doubles down on AI amid soaring profits and controversy

Netflix has officially confirmed that it has used generative AI in a finished original production for the very first time -- specifically in the Argentine sci-fi series El Eternauta. In a spectacular scene where a building collapses in Buenos Aires, the entire effect was created using AI via Netflix's in-house Eyeline Studios. According to co-CEO Ted Sarandos, this AI solution was not only ten times faster than traditional visual effects -- the scene would've been "unachievable" within the show's budget without it. In an interview, Sarandos emphasized: "We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper. There are AI-powered creator tools. So this is real people doing real work with better tools. Our creators are already seeing the benefits in production through pre-visualization and shot-planning work, and certainly visual effects. It used to be that only big-budget projects would have access to advanced visual effects like de-aging." In short, Sarandos sees AI as a tool that enables complex and visually impressive effects even in lower-budget films and TV series. At the same time, he stresses that real humans are still very much involved, and that AI isn't a replacement, but a way to expand storytelling and production possibilities. Unsurprisingly, the move has raised concerns within the film and VFX industries. During the Hollywood strikes of 2023, labor issues related to AI were a key point of contention. Unions warn that the technology risks displacing skilled roles, and some institutions -- like Spain's Goya Academy -- have even introduced restrictions on AI-generated content in productions. Meanwhile, Netflix has posted strong financials in its second quarter: roughly $11 billion in revenue (a 16% increase) and $3.1 billion in profit. The company credits some of that success to high-performing titles like Squid Game, which in turn opens up further opportunities to invest in AI innovation. What do you think about the use of AI in film and TV? Are traditional VFX artists at risk of becoming obsolete -- or is this just another tool in the creative toolbox?

Netflix Says It Used Generative AI In One Of Its TV Shows 'El Eternauta' For The First Time, Helping 'Creators Make Films And Series Better' While Also Saving On Costs

Not bringing in generative AI for movies and TV shows was just delaying the inevitable, because the world's biggest streaming platform, Netflix, has admitted that it leveraged the technology for one of its latest TV series titled El Eternauta. In addition to saving heaps of money, the company states that it will enable creative professionals to make future content significantly better. Unfortunately, this move could also be the start where these creative minds have their livelihood at stake because of the very technology they took advantage of. For those who do not know, El Eternauta, or The Eternaut, is an Argentinian science fiction series that employs various visual effects using generative AI. The streaming giant's co-Chief Executive, Ted Sarandos, informed analysts during Netflix's Q2 earnings regarding the shift to generative AI, claiming that aside from mitigating costs, using this technology will bring out the creative side of creators. "We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper. Using AI-powered tools, they were able to achieve an amazing result with remarkable speed and, in fact, that VFX sequence was completed 10 times faster than it could have been completed with traditional VFX tools and workflows. The cost of [the special effects without AI] just wouldn't have been feasible for a show in that budget." With generative AI, Sarandos says that his production team completed a sequence that showed the collapse of a building in Buenos Aires 10 times faster than if they used conventional special effects tools. He also mentions that the team was thrilled when they saw the results for the first time. The decision to use generative AI means that Netflix will aggressively use this technology, particularly for TV series and movies that fit the science-fiction genre. In short, the streaming platform has embraced generative AI, with Sarandos mentioning that creators have already witnessed the vast benefits of this addition, with 'real people doing real work with better tools.' While reducing production costs will be Netflix's target from hereon, the real danger is when a majority of the team is no longer required because generative AI can pretty much replace them in the future. We shall save this discussion for a later time, but readers can understand where we are coming from, as the industry's fears are somewhat warranted.

Netflix's Ted Sarandos Says AI Will Make Movies and TV "Better, Not Just Cheaper"

Erin Westerman Named President at Lionsgate Motion Picture Group Amid Studio Shake-Up Netflix co-CEO Ted Sarandos sees generative artificial intelligence tools expanding creativity during the making of movies and TV series and not just being a cost-cutting option for studios. "We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper," Sarandos told financial analysts on Thursday after his company delivered its second quarter financial results. "So this is real people doing real work with better tools. Our creators are already seeing the benefits in production through pre-visualization and shot planning work, and certainly visual effects," he added. And not just on bigger budget projects. Sarandos pointed to El Eternauta (The Eternaut), an Argentine sci-fi series that follows survivors of a sudden and devastating toxic snowfall and which made use of virtual production and AI-powered visual effects tools. In the first-ever generative AI footage to stream as part of a Netflix original series or film, Sarandos said Netflix and Argentinian VFX artists collaborated to show a building collapsing in Buenos Aires. "Using AI-powered tools, they were able to achieve an amazing result with remarkable speed and, in fact, that VFX sequence was completed ten times faster than it could have been completed with traditional VFX tools and work flows," he recounted. And using AI tools enabled the use of VFX in a six-part series made entirely by an Argentine cast and crew and with a budget lower than is typical for big budget Hollywood productions. "The creators were thrilled with the result. We were thrilled with the result, and more importantly the audience was thrilled with the result. So I think these tools are helping creators expand the possibilities of storytelling on screen, and that is endlessly exciting," Sarandos told analysts.

Netflix just normalised AI for VFX - and I'm devastated

So it's official. Netflix has announced they've used gen AI in El Eternauta, their Argentinian sci-fi series, to create a building collapse sequence. Ted Sarandos, Netflix's co-chief executive, was practically giddy with excitement, telling analysts that this represents "an incredible opportunity to help creators make films and series better, not just cheaper". My feelings, though, couldn't be more different. I'm devastated... and not just because it signals the beginning of the end for countless talented artists. Purely as a viewer, I'm shocked to see Netflix fire the starting pistol on a new race to the bottom. One that will fundamentally change what we see on our screens. No one's fooled here. Netflix didn't use AI because they wanted to push creative boundaries or unlock new storytelling possibilities. They used it because it was cheaper. Ted himself admitted traditional VFX "wouldn't have been feasible for a show in that budget." Fair enough - but what he's really saying is that they'd rather compromise on quality than find the money to do things properly. This coming from a company that reported $11 billion in revenue last quarter; a 16% year-on-year increase. Let's be clear: Netflix can afford proper VFX work. The real message is, they're choosing not to pay for it. And the really insidious part is how they're selling this as somehow beneficial for creators. "Real people doing real work with better tools," Ted claimed on the analysts call. But we all know where this leads. When you can generate a building collapse in a tenth of the time, you don't need nine-tenths of the people. The "better tools" rhetoric is the same hollow promise we've heard in every creative industry that's been automated out of existence. And the shows? The shows will suffer. We've all seen enough AI-generated content to know that it has a particular flavour: technically competent but creatively hollow. It's like listening to a mediocre cover band play your favourite song; all the notes are there, but something indefinable is missing. Similarly, we're about to enter an era where visual effects become increasingly homogenised; where every explosion, every creature, every impossible landscape bears the subtle fingerprints of the same algorithmic processes. The quirks and idiosyncrasies that make individual VFX artists and studios distinctive will be smoothed away in favour of efficient, predictable mediocrity. This approach represents a fundamental misunderstanding of what makes visual storytelling compelling. As I note in my article Spectacular design has become TV's secret weapon, shows like The Penguin, Severance and The White Lotus dominated this year's Emmys precisely because they invested serious money and creative energy into their visual worlds. Conversely, cost-cutting on VFX seems like a spectacular own goal. When you're competing for attention in an infinite scroll of content, your show needs to look like something viewers haven't seen before. You might save a bit of money in the short term. But ultimately, you're going to reduce audience engagement and revenue. So not only will the quality suffer, so will the bottom line. We're already seeing the consequences of this mentality across the industry, from AI-driven advertising to machine-generated music, in the form of content that looks technically proficient but feels spiritually vacant. When every visual effect is generated by the same underlying processes, trained on the same datasets, we'll end up with a visual monoculture that's as depressing as it is predictable. At the same time, is anyone considering the VFX artists who've spent decades mastering their craft, who understand the subtle interplay between light and shadow, who know how to make impossible things feel tangible and real? These aren't just jobs being automated away - they're real humans, and complex creative ecosystems, being dismantled in favour of computational expedience. For what? So Netflix can make more content a little more cheaply? So they can fund another dozen forgettable series instead of investing properly in a handful of genuinely memorable ones? Don't get me wrong: I'm not a Luddite. I know that technology has always changed how entertainment is made. But there's a difference between using technology to enhance human creativity and using it to replace it entirely. Netflix has chosen the latter path, and I fear we're going to be poorer for it.

Netflix says it used GenAI in Argentine TV series

LOS ANGELES -- Netflix said on Thursday that it used generative artificial intelligence to produce visual effects that appeared for the first time on screen in one of its original series, employing a technology that has been a source of anxiety throughout Hollywood. Co-CEO Ted Sarandos hailed AI as "an incredible opportunity to help creators make films and series better, not just cheaper." Sarandos offered the example of Argentine science-fiction series "El Eternauta (The Eternaut)," where the creators wanted to show a building collapsing in Buenos Aires -- a visual effect that would have been beyond the project's budget. The creative team partnered with Eyeline Studios, a production innovation group within Netflix, to make the dramatic scene with the aid of AI. "That VFX sequence was completed 10 times faster than it could have been completed with visual traditional VFX tools and workflows," Sarandos said during the company's second-quarter investor call. "And also the cost of it would just wouldn't have been feasible for a show in that budget." Sarandos said the sequence is the first GenAI final footage to appear on screen in a Netflix original series or film. AI has become a flashpoint in Hollywood since the labour unrest of 2023, which resulted in new guidelines for the use of the technology. The main concern is that AI could replace the work of humans. Co-CEO Greg Peters said Netflix may find other ways to leverage generative AI to improve the user experience -- including offering viewers the ability to use spoken words to find something to watch. "Saying 'I want to watch a film from the '80s that's a dark psychological thriller,' (and getting) some results back ... you just couldn't have done in our previous experiences," said Peters. "So that's super-exciting." Advertising represents another opportunity for generative AI, Peters said, as brands and marketers seek to create compelling content. "We think these generative techniques can decrease that hurdle iteratively over time and enable us to do that in more and more spots," said Peters. By Dawn Chmielewski and Lisa Richwine

Netflix Embraces Generative AI for Visual Effects, Sparks Industry Debate

AI Takes the Spotlight: Netflix Uses Generative Tech for Groundbreaking VFX Streaming giant Netflix is now officially in the era of generative artificial intelligence content production, representing a significant shift in how original series are created. Netflix AI Content is reshaping how stories are written, produced, and visually presented on the platform. The use of Generative AI allows Netflix to experiment with scripts, character development, and scene planning. The AI launch was in the forthcoming Argentine science fiction series El Eternauta. In the episode, AI tools were used to produce a dramatic visual sequence depicting a building collapsing in Buenos Aires. The scene, developed using in-house AI by Netflix's production engineering team and its VFX subsidiary Scanline VFX, is believed to be the first generative AI-generated footage included in the final edit of a Netflix Original. The company touts it as a technological breakthrough that significantly reduces production time and cost.

Netflix accelerates production and cuts costs with generative AI

Industry professionals see AI as a tool to enhance creativity, not to replace human artists. recently unveiled a revolutionary use of artificial intelligence in its series The Eternaut. For the first time, generative AI was used to create visual effects, specifically a scene in which a building collapses. Co-CEO emphasized the technology's ability to generate complex sequences faster and at much lower costs than traditional methods. This technological breakthrough marks a significant milestone for and the entertainment industry as a whole. The creators of The Eternaut are reportedly very pleased with the results achieved through generative AI. Despite the excitement about AI's potential, its application in the entertainment industry has sparked debate and concern. Critics argue that generative AI could exploit existing creative works without permission. In addition, the technology could lead to job losses. These concerns were central during the strikes of 2023, when actors and writers demanded clearer rules for the use of AI. Impact and future of AI in entertainment Filmmaker even paused a major expansion of his studio in 2024, citing concerns about AI's impact on jobs within the industry. The introduction of advanced AI tools like OpenAI's Sora has generated both excitement and anxiety. Sora can generate high-quality images from text prompts, thereby impacting the creative sector. Many professionals in the industry, however, see AI more as a valuable addition to the creative toolbox than as a replacement for human artists. Davier Yoon, co-founder of animation studio CraveFX, believes Netflix's decision signals a broader shift in the sector. He points out that generative AI enables smaller studios to create visuals comparable to large-scale productions. At the same time, it is acknowledged that the artist remains the ultimate decision-maker in shaping the final result.

Netflix confirms AI use to produce shows '10x faster' and of better quality - VnExpress International

"We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper," Sarandos said Thursday, following the U.S. streaming giant's second-quarter results, as reported by The Guardian. AI was employed in the making of "The Eternaut," an Argentine series based on a popular sci-fi comic, according to Business Insider. The show, which follows survivors of a devastating toxic snowfall, used generative AI to create a building collapse scene in Buenos Aires. "Using AI-powered tools, they were able to achieve an amazing result with remarkable speed and, in fact, that VFX sequence was completed 10 times faster than it could have been completed with traditional VFX tools and workflows," Sarandos explained. He noted that without AI, such a VFX effect would not have been cost-effective for a production of The Eternaut's scale. The co-CEO said everyone was "thrilled" with the results and dismissed concerns that AI would replace human roles in the industry. "I think these tools are helping creators expand the possibilities of storytelling on screen, and that is endlessly exciting." The use of AI in film production has ignited significant debate. While industry figures like American actor Robert Downey Jr. and director James Gunn have raised concerns, others, including director James Cameron and actor Ben Affleck, have embraced the technology, according to The Independent. The issue was also central during the 2023 dispute between SAG-AFTRA, the US's largest actors' union, and Hollywood studios, with striking actors seeking assurances over AI usage, residual pay increases, and improved benefits related to streaming.

Netflix and Disney explore using Runway AI: How it changes film production

While boosting efficiency, AI in film raises ethical concerns about job loss and storytelling authenticity. Picture a world where a low-budget sci-fi series delivers blockbuster-level visual effects, or a director previews a fully realized scene before a single frame is shot. This is the promise of Runway AI, a generative AI platform that's capturing the attention of Hollywood giants Netflix and Disney. By integrating cutting-edge AI tools into film production, these studios are redefining how movies and shows are made, slashing costs, speeding up workflows, and unlocking bold new creative possibilities. Yet, as Runway AI reshapes the industry, it also sparks heated debates about jobs, ethics, and the soul of storytelling itself. Also read: From OpenAI's Sora to Google's Veo: 5 AI tools for video generation Netflix is leading the charge, having harnessed Runway AI for its Argentine sci-fi series The Eternaut. Faced with a tight budget, the production team needed a strong visual: a building collapsing in the heart of Buenos Aires. Traditionally, such a sequence would demand weeks of work and a hefty budget. With Runway's video generation tools, however, the scene was completed 10 times faster and at a fraction of the cost. "AI made this possible," Netflix co-CEO Ted Sarandos declared, emphasising how the technology empowers creators to deliver ambitious visuals without breaking the bank. The result was a seamless effect that left audiences awestruck, proving AI can rival traditional VFX workflows. Disney, meanwhile, is taking a more cautious approach. The studio has begun testing Runway's tools and engaging in discussions with the New York-based startup, though it's not yet ready to fully integrate AI into its production pipeline. A Disney spokesperson clarified that no concrete plans exist, a stance likely influenced by industry-wide concerns, including a recent copyright lawsuit against AI firm Midjourney. Still, Disney sees the potential. From generating storyboards to simulating virtual sets, Runway's tools could streamline its processes, making high-quality visuals accessible even for smaller projects. Also read: The Era of Effortless Vision: Google Veo and the Death of Boundaries Runway AI's impact spans every stage of filmmaking. In pre-production, its algorithms analyse scripts, generate detailed storyboards, and create virtual environments, allowing directors to visualise scenes with unprecedented clarity. For the indie hit Everything Everywhere All At Once, VFX artist Evan Halleck used Runway's green screen tool to extract characters from footage in mere minutes, a task that once took hours or even days. In post-production, AI-driven editing, style transfers, and audio enhancements accelerate workflows and spark creative experimentation. The creative potential of tools like Runway AI is transformative. Filmmakers can experiment with bold ideas, like morphing live-action footage into animated styles or crafting kid-friendly versions of mature content. Smaller production teams, often constrained by budgets, now have access to tools once reserved for blockbuster studios. On-set, real-time previews of lighting, set designs, or VFX changes enable directors to make decisions faster, fostering collaboration and precision. For instance, a director can tweak a scene's lighting on the fly, seeing results instantly rather than waiting for post-production renders. Yet, Hollywood's embrace of AI comes with significant controversy. The 2023 actors' and writers' strikes laid bare fears that AI could displace jobs in VFX, writing, or even acting. Netflix and Runway insist their tools augment human creativity, not replace it, but the concern persists. Ethical questions also loom large: AI models trained on studio content raise thorny issues about intellectual property, as highlighted by Disney's Midjourney lawsuit. Audiences, too, are skeptical. Some viewers detect subtle flaws in AI-generated footage, fueling distrust, particularly in genres like true crime where authenticity is paramount. One critic noted, "If I can't trust what I'm seeing, what's the point of storytelling?" The industry's adoption of AI is further complicated by Hollywood's cautious culture. Netflix's use of Runway in The Eternaut went unnoticed for months, suggesting studios may downplay AI's role to avoid backlash. Lionsgate's groundbreaking deal with Runway, which involves training AI on its vast film library, hints at a future where personalised content or interactive media becomes the norm. This could lead to tailored movie experiences or even AI-generated sequels, but it also raises questions about creative control and originality. As Netflix and Disney deepen their exploration of Runway AI, the technology's role in filmmaking is poised to grow. Runway's competitors, like OpenAI's Sora and Google's AI tools, are also vying for Hollywood's attention, but Runway's studio partnerships give it a first-mover advantage. The technology promises not just efficiency but a new era of storytelling, where creators can push boundaries without budget constraints. Yet, the industry must navigate a delicate balance. Will AI democratise filmmaking, empowering new voices, or erode the human artistry that defines cinema? For now, Runway AI is a catalyst for change, blending innovation with practicality. As Netflix delivers stunning VFX on a shoestring and Disney tests the waters, they're proving AI isn't just a tool, it's a new lens for storytelling. The question isn't whether AI will transform Hollywood, but how studios and audiences will adapt to a future where machines and creativity collide.