Netflix has announced that it is going “all in” on generative AI to improve creativity and efficiency in filmmaking. In its latest quarterly report, the streaming giant said it is “very well positioned” to use AI advancements to enhance production quality and creative storytelling.
During the company’s earnings call, CEO Ted Sarandos explained that while AI will not replace human creativity, it will play a key role in supporting filmmakers. “It takes a great artist to make something great,” Sarandos said. “AI can give creatives better tools to enhance their overall TV or movie experience, but it doesn’t automatically make you a great storyteller.”
Netflix has already started using generative AI in several projects. The technology helped create a realistic building collapse scene in The Eternaut, an Argentine sci-fi show, and assisted with de-aging characters in Happy Gilmore 2. It was also used in Billionaires’ Bunker during pre-production to visualize wardrobe and set designs. Sarandos said the company is confident that AI will help tell stories “better, faster, and in new ways.”
However, Hollywood remains divided over the role of AI in entertainment. Many artists and unions worry that AI could threaten jobs and intellectual property rights, especially since some AI tools are trained on copyrighted content without permission. The release of OpenAI’s advanced video model, Sora 2, has added to these concerns due to its potential misuse in creating deepfakes. Actor Bryan Cranston and SAG-AFTRA have urged stronger regulations to protect performers.
Sarandos acknowledged that AI could influence content creation but dismissed fears of it replacing human creativity. “It starts to make sense that content creators could be impacted,” he said, “but we’re not worried about AI replacing creativity.”
Despite ongoing debates around AI, Netflix continues to perform strongly. The company reported a 17% increase in year-over-year revenue, reaching $11.5 billion, slightly below market expectations but still showing steady growth. Netflix’s balanced approach toward integrating AI indicates its commitment to combining technology with human storytelling, a move that could shape the future of entertainment production.
