Netflix Pioneers AI-Driven Visual Effects in New Series
Published 18 July 2025
Highlights
- Netflix has used generative AI for visual effects in its Argentinian series "El Eternauta," marking a first for the company.
- The AI technology enabled the production team to complete a complex visual effects sequence 10 times faster than traditional methods.
- Netflix's co-CEO Ted Sarandos highlighted AI as a tool to enhance creativity and reduce production costs, despite industry concerns over job security.
- The company's revenue for the second quarter of 2023 rose by 16%, driven by the success of shows like "Squid Game."
- AI's role in entertainment remains controversial, especially following Hollywood strikes advocating for tighter regulation.
Netflix has taken a significant step in the entertainment industry by integrating generative artificial intelligence (AI) into its production processes. The streaming giant's co-CEO, Ted Sarandos, announced that AI was used to create visual effects in the Argentinian science fiction series "El Eternauta," marking the first time Netflix has employed such technology in its original content.
AI Enhances Production Efficiency
The use of AI in "El Eternauta" allowed the production team to depict a building collapse in Buenos Aires with remarkable speed and efficiency. According to Sarandos, the AI-powered tools enabled the completion of the visual effects sequence 10 times faster than traditional methods. This advancement not only improved production timelines but also made high-quality effects feasible within a limited budget. "The cost of it just wouldn't have been feasible for a show in that budget," Sarandos explained.
Industry Reactions and Concerns
While Sarandos praised AI as an "incredible opportunity" to enhance storytelling, the technology's adoption has sparked concerns within the entertainment industry. The fear that AI could replace human jobs, particularly in production and special effects, was a central issue during the Hollywood strikes in 2023. The Screen Actors Guild–American Federation of Television and Radio Artists union called for tighter regulation to ensure AI remains a tool for creators rather than a replacement.
Financial Success Amidst Innovation
Netflix's embrace of AI coincides with a strong financial performance. The company reported a 16% increase in revenue for the second quarter of 2023, reaching $11.08 billion. This growth was bolstered by the success of popular series like the South Korean thriller "Squid Game," which attracted 122 million views. Additionally, Netflix's burgeoning advertising business is expected to double in size this year, contributing to its robust financial outlook.
What this might mean
The integration of AI in Netflix's production processes could set a precedent for the broader entertainment industry, potentially leading to more widespread adoption of the technology. However, this shift may also intensify debates over job security and the ethical use of AI in creative fields. As the industry grapples with these challenges, regulatory frameworks may evolve to balance innovation with the protection of human labor. Experts suggest that while AI offers exciting possibilities for storytelling, its implementation must be carefully managed to ensure it complements rather than compromises the creative workforce.
