Netflix says it is fully embracing the potential of generative AI in filmmaking, but only as a support tool for creators rather than a replacement for human talent. In its latest quarterly earnings report, the streaming giant told investors it is “well positioned to effectively leverage ongoing advances in AI,” emphasizing that the technology could help make production more efficient. CEO Ted Sarandos stressed during the earnings call that AI cannot replace storytelling, noting that “it takes a great artist to make something great.”
The company has already begun experimenting with AI in select projects. Netflix confirmed it first used generative AI in final footage for the Argentine series The Eternaut, helping create a building collapse scene. The technology was also used to de-age characters in Happy Gilmore 2 and to support wardrobe and set visualization in the upcoming Billionaires’ Bunker. Sarandos said Netflix is “all in” on AI that helps filmmakers tell stories “better, faster, and in new ways,” while stating it won’t pursue AI just for novelty.
The growing use of generative AI remains controversial in Hollywood, especially among visual effects artists and actors who fear job displacement and unauthorized use of their likeness or creative work. Tensions have escalated after OpenAI’s release of its Sora 2 model, which launched without strict protections against deepfakes. This week, SAG-AFTRA and actor Bryan Cranston demanded stronger guardrails to prevent misuse of performers’ identities.
Sarandos acknowledged that AI advances like Sora may impact content creation but insisted Netflix is not threatened creatively. “We’re not worried about AI replacing creativity,” he told investors. Meanwhile, Netflix posted a 17% year-over-year revenue increase to $11.5 billion for the quarter, though the figure still fell short of expectations