The Article Tells The Story of:
- Netflix Uses GenAI to Build Scenes Faster: AI helps Netflix complete complex visual effects 10 times quicker.
- El Eternauta Features First GenAI Footage: The Argentine show includes a full AI-generated scene of a collapsing building.
- AI Expands Beyond Visuals: Netflix applies GenAI in search, ads, and personalized content suggestions.
- More Content, Lower Costs: AI helps creators work faster while keeping expenses down.
Netflix Adds Generative AI to Show and Movie Production
Netflix has officially started using generative AI to help create scenes in its original shows and movies. Speaking on the company’s earnings call this week, Netflix co-CEO Ted Sarandos confirmed that generative AI has already appeared in a new project.
The Argentine science fiction series El Eternauta includes what Netflix says is its first on-screen use of GenAI in a finished scene. According to Sarandos, the production team used generative AI to create a building collapse, and the result was both faster and cheaper than using traditional visual effects tools.
At Squaredtech.co, we reviewed the announcement closely. This move shows that Netflix isn’t testing AI in a closed lab—it’s pushing real AI work into public content. By using generative AI in a live production, Netflix sets a major precedent for how other streaming platforms might handle future content creation.
Sarandos explained that the GenAI-powered sequence was completed 10 times faster than standard VFX methods, making it more efficient for producers and the in-house Netflix production team. The added benefit? It also reduced the cost of the scene.
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Creators Still Lead—AI Just Speeds Up the Tools
Sarandos made it clear that Netflix’s AI strategy still relies on human creators. He emphasized that the company is giving real filmmakers better tools, not replacing them with machines.
“Our creators are already seeing the benefits in production through pre-visualization and shot-planning work, and certainly visual effects,” Sarandos said. He also noted that GenAI is helping creators achieve visual effects like character de-aging, which were previously limited to big-budget projects.
At Squaredtech, we see this as a smart shift. Netflix isn’t automating everything—it’s helping people work faster with fewer limits. That’s especially valuable for international productions, where budgets may be lower than U.S.-based blockbusters.
Generative AI can save time, lower costs, and let more creative ideas reach the screen. That’s good news for directors and producers trying to meet tight deadlines or budget caps without sacrificing visual quality.
GenAI at Netflix Goes Beyond Visual Effects
Netflix isn’t stopping at just using GenAI for visuals. The company also confirmed it’s applying generative AI across other core functions like search, ad personalization, and interactive content.
Co-CEO Greg Peters said Netflix has already integrated AI into its search engine to improve user discovery. He also revealed plans for interactive ads powered by GenAI—set to roll out in the second half of 2025.
These AI-powered ads could react to user behavior or interests in real-time, creating more dynamic ad experiences. At Squaredtech.co, we believe this signals a deeper shift in how Netflix plans to monetize its ad-supported tiers while keeping viewers engaged.
Personalization is another big win. GenAI models can better predict what viewers want, leading to stronger recommendations and higher retention. This could help Netflix stay ahead of platforms like Amazon Prime Video and Disney+, where recommendation quality is hit-or-miss.
Netflix Reports Huge Growth in 2025
Alongside the AI announcement, Netflix shared its second-quarter results for 2025. The company reported:
- $11.08 billion in revenue, up 16% year over year.
- $3.13 billion in profit, showing strong margins despite increased content spending.
- 95 billion hours of content viewed in the first half of 2025.
- One-third of views from non-English content, showing global demand continues to grow.
This data shows that Netflix’s global audience is expanding, and non-English content is a major driver. Tools like generative AI can help Netflix scale international productions without increasing costs, which may be why it chose El Eternauta as its test case.
At Squaredtech.co, we’ve tracked Netflix’s tech strategy over the years, and this move aligns with its ongoing push to blend technology with storytelling. By using GenAI at every stage—from production to delivery—Netflix is trying to stay one step ahead in a crowded streaming market.
Final Thoughts from Squaredtech
Netflix’s move to use generative AI in real content is a clear signal that the streaming giant is embracing AI beyond experiments. The building collapse scene in El Eternauta is more than just a special effect—it’s proof that GenAI can speed up work, cut costs, and deliver on creative goals at scale.
At Squaredtech.co, we expect other studios and platforms to follow Netflix’s lead. Whether it’s for visuals, personalization, or ad content, generative AI is now a real production tool—not a future concept.
We’ll keep watching as Netflix expands its AI features in future releases, and we’ll update readers as more shows include GenAI-driven scenes or interactivity. For now, this is a major turning point for content creation—and the start of a new production model across the industry.
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