Netflix has officially incorporated generative artificial intelligence (AI) into its content creation process for the first time. The technology was used to produce a visually complex sequence of a building collapse in the Argentine sci-fi series El Eternauta.

According to Netflix co-CEO Ted Sarandos, the AI-powered visual effects were created ten times faster and at a fraction of the cost compared to traditional methods. The project was developed with the help of Netflix’s in-house innovation team, Eyeline Studios, enabling advanced effects for a mid-budget production that might otherwise have been too expensive.

Sarandos emphasized that AI acts as a creative tool to enhance human work rather than replace it, helping with tasks such as pre-visualization, shot planning, and visual effects. Co-CEO Greg Peters added that generative AI could also be used in the future for improving user experience through voice-based content search and innovative advertising.

The announcement comes as Netflix reported strong financial results for the second quarter, with revenue reaching $11.1 billion and a net profit of $3.13 billion. The streaming giant has seen over 95 billion hours watched so far in 2025, including a growing audience for non-English content.

While Netflix embraces AI to speed up production and reduce costs, the wider entertainment industry remains cautious following AI-related labor strikes in Hollywood. Netflix’s leadership assures that the technology complements creators’ work without threatening jobs.

This integration of generative AI marks a significant milestone in media production, opening new possibilities for cost-effective, high-quality storytelling, especially for international and mid-tier projects.