Netflix makes a bold move with generative AI despite divided opinions in entertainment

Netflix’s AI game plan

Netflix is fully embracing artificial intelligence to change how shows are made. In its Q3 2025 shareholder letter, Netflix said it is ‘very well positioned’ to leverage ongoing advances in generative AI and described the technology as a ‘significant opportunity’ for members, creators, and the business.

Netflix executives say generative AI offers powerful tools to help artists work more efficiently, speeding tasks like previs, VFX iterations, localization, and marketing asset creation.

A tool for artists

Netflix’s CEO clearly states that a great artist is still essential for creating great art. He believes AI cannot automatically make someone a master storyteller.

Instead, it serves as a modern toolkit to enhance the final movie or TV experience for viewers. The human touch remains the most vital ingredient.

Creating a building collapse with AI

For the Argentine series The Eternaut, filmmakers faced a complex scene depicting the destruction of a building. They turned to generative AI to create this challenging shot for the final episode. This innovative approach allowed them to achieve a realistic collapse effect safely and effectively.

Netflix said the collapse in The Eternaut was the first time generative AI appeared in the final footage of a Netflix original, a milestone the company discussed on its earnings call.

De-aging actors for a flashback

Netflix reported it used generative AI tools to de-age characters in the opening flashback of Happy Gilmore 2, producing a younger appearance that would be difficult to recreate with makeup alone.

This technology digitally adjusted their appearances to match earlier time periods in the story. It provided a subtle effect that traditional makeup alone cannot achieve.

Designing before building

The creators of Billionaires’ Bunker used AI during pre-production to visualize their ideas. They explored countless wardrobe options and set designs before committing to physical construction.

This process allowed for rapid experimentation and creative brainstorming. It saved significant time and resources during the crucial early planning stages.

Supercharging suggestions

You likely know Netflix’s system that recommends your next favorite show. That sophisticated matching is powered by machine learning, a form of AI that studies your viewing habits.

This technology personalizes your homepage to surface hidden gems you will probably love. It works constantly behind the scenes to improve your browsing experience.

Hollywood’s anxious divide

Many artists in the entertainment industry are deeply worried about AI’s rise. A major concern is that their own work was used to train these systems without their consent or payment.

This fear has created a significant rift between studios and creatives. Unions are now fiercely negotiating to establish strong protections for their members.

The threat of deepfakes

New AI models can now generate highly convincing fake videos, known as deepfakes. This technology sparked alarm after it created videos of actors and historical figures without permission.

Prominent stars and the actors’ union SAG-AFTRA are demanding stronger ethical guardrails. They want to prevent the unauthorized use of anyone’s digital likeness.

A financial power play

Netflix’s push for AI aligns with its strong business performance, where revenue recently grew 17%. The company is always seeking smarter ways to produce its vast global content library.

Using AI to streamline workflows can lead to greater efficiency and cost management. This strategic investment helps them maintain a competitive edge in the streaming world.

Boosting the ad business

Netflix said its ad business had its best quarter to date and is ‘on track to more than double’ ad revenue in 2025. The company also plans to use AI to improve ad targeting and creative efficiency.

AI helps analyze viewer data to serve more relevant and engaging commercials. This makes the ad experience better for subscribers and more valuable for brands.

Setting ground rules

Netflix introduced new production guidelines to govern the use of AI by its partners. These rules mandate that producers must disclose their planned use of AI tools.

The policy also explicitly forbids using AI to replicate copyrighted material or an actor’s likeness without strict legal approval. This framework aims to ensure responsible and ethical use.

The invisible effects crew

The rise of AI in visual effects raises questions about the future of human artists. Some fear these tools could eventually replace jobs in editing and effects.

Netflix positions AI as an assistant that handles repetitive tasks, freeing humans for complex creative decisions. The goal is a collaboration that enhances the artists’ capabilities, not replaces them.

Why story still rules

The CEO points to the music industry as a reassuring example. He notes that despite the flood of AI-generated songs, authentic artists like Taylor Swift continue to dominate.

This demonstrates that genuine human connection and creativity cannot be easily replicated by machines. A compelling story, not just flashy effects, is what truly captivates an audience.

The efficiency engine

A key advantage of AI is its incredible speed for certain jobs. It can rapidly generate hundreds of visual concept art images or brainstorm set design ideas.

This acceleration allows human creatives to review more options and make informed decisions faster. It ultimately gives them more time to focus on refining the narrative and performances.

A global content machine

As Netflix expands worldwide, it needs to create a massive amount of content for different cultures. AI tools can assist in scaling up this enormous production effort efficiently.

They can help with tasks like translating marketing materials or streamlining post-production workflows. This supports the company’s mission to deliver diverse stories to a global audience.

Want to see how Netflix is improving your viewing experience? Check out their new clean subtitles feature.

The human behind the curtain

Every technological advancement serves the central goal of telling a great story. Netflix assures viewers and creators that the heart of their entertainment will always be human.

AI is merely a sophisticated new instrument in the artist’s toolbox, like a better camera or editing software. The emotional power of your favorite show still comes from people.

Want to see how this technology can even help you find your next favorite story? See how Netflix adds AI to help you find shows.

What’s your take on AI’s role in creative storytelling? Share your thoughts below and hit like if you found this interesting.

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This slideshow was made with AI assistance and human editing.