Global streaming giant Netflix has confirmed that it has begun integrating generative artificial intelligence (GenAI) into the production of its films and series, marking a significant shift in how content is developed and finalized.

The announcement was made during the company’s quarterly earnings call on Thursday, where Netflix co-CEO Ted Sarandos revealed that GenAI-generated footage had been used in the upcoming Argentine science fiction series El Eternauta (The Eternaut). The series, adapted from a classic graphic novel, features what Sarandos described as “the very first GenAI final footage to appear on screen” — a scene depicting a collapsing building.

According to Sarandos, the visual effects for the scene were completed ten times faster than would have been possible using traditional VFX methods and at a considerably reduced cost.

“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 further added that the platform’s internal production team collaborated closely with external producers to bring the GenAI-enhanced scene to life.

The Netflix executive emphasized that generative AI tools are being used in various stages of production — including pre-visualization, shot planning, and de-aging — capabilities that were previously available only to high-budget projects.

Co-CEO Greg Peters also commented on the broader integration of AI technologies across the company’s operations. He noted that AI is currently being used to improve personalization, advertising, and search functions on the platform. Netflix launched an AI-powered search feature earlier this year and is expected to roll out interactive, AI-driven advertisements in the second half of 2025.

The use of AI in Hollywood has sparked debate in recent months, particularly among industry professionals and unions, with concerns raised over job security and creative integrity. However, Netflix’s remarks suggested a more collaborative approach, portraying GenAI as a tool to augment human creativity rather than replace it.

In terms of financial performance, Netflix reported strong results for the second quarter of 2025. The company posted revenue of $11.08 billion — a 16 per cent increase compared to the same period last year — along with a net profit of $3.13 billion.

The streaming service said users watched more than 95 billion hours of content in the first six months of the year. Notably, non-English titles made up roughly one-third of all viewing hours, reflecting the company’s growing international footprint and content diversity.