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The use of AI enabled Netflix to keep production costs far below the norm for such a large-scale project, making room for creative ambition within budget limits.

Published on: July 19, 2025

Edited on: July 19, 2025

Netflix AI

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US: Netflix has for the first time used generative artificial intelligence (AI) in the production of a television series, marking a significant shift in how content may be created in the future.

The Argentinian sci-fi show El Eternauta shows shift in the company’s production strategy, blending traditional filmmaking with cutting-edge AI technology to deliver faster, cheaper, and higher-quality content.

The milestone was revealed by Ted Sarandos, Netflix’s co-chief executive, during the company’s second-quarter earnings call. He confirmed that AI-powered tools were used in collaboration with visual effects (VFX) artists to create a scene in which a building collapses in Buenos Aires, a pivotal moment in the post-apocalyptic series, which is based on a toxic snowfall that devastates the city.

“Using AI-powered tools, they were able to achieve an amazing result with remarkable speed. That VFX sequence was completed 10 times faster than it would have been using traditional workflows,” Sarandos said.

Sarandos emphasized that AI had enabled Netflix to fund the series at a fraction of the usual cost for a production of this scale, opening doors for more ambitious storytelling even within constrained budgets.

Despite concerns that the rise of AI in the entertainment industry could threaten jobs, particularly in the production and post-production sectors, Sarandos reiterated that the technology was intended to augment human creativity, not replace it.

The introduction of AI comes amid ongoing debate over its impact on the creative industry. In 2023, Hollywood actors and writers staged dual strikes, with AI being a key issue. The resulting agreements ensured that AI technologies would remain under the control of workers and not be used as replacements for them.

“Netflix’s better-than-expected quarter is a result of great content, increased pricing, and advertising momentum hitting all at once,” said Mike Proulx, Vice President of Research at Forrester.

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