Netflix Embraces Generative AI in TV Production
Netflix revealed its first use of generative AI visual effects in an original series. Co-CEO Ted Sarandos confirmed that AI-generated effects were applied in The Eternaut, an Argentine science fiction show.

The technology created a building collapse scene in Buenos Aires. Sarandos said AI allowed the team to finish the sequence 10 times faster than traditional VFX tools. “The cost would have been impossible to manage within the show’s budget,” he added.
AI Sparks Debate in the Entertainment Industry
The use of AI in visual effects is highly controversial. Many argue that AI tools can copy or remix creative works without consent. There are also fears of job losses for skilled artists.
In 2023, the Screen Actors Guild (SAG-AFTRA) raised these issues during a strike. They demanded stricter rules for AI in TV and film production. In 2024, Tyler Perry even paused an $800 million studio expansion over AI’s potential impact on employment.
Record Revenue Boosts Netflix’s Confidence
Netflix also announced strong financial results. Revenue jumped 16% to $11 billion in the quarter ending June. Profits climbed from $2.1 billion to $3.1 billion.

The growth was supported by the success of Squid Game season three. The series has already drawn over 122 million views worldwide.
Generative AI Redefines Visual Effects
Industry experts see Netflix’s move as part of a larger trend. Davier Yoon, co-founder of CraveFX, said that major studios are increasingly adopting AI tools.

“AI doesn’t replace artists; it enhances their work,” Yoon explained. “It lets smaller studios create visuals that once needed blockbuster budgets. In the end, the artist decides what the audience sees, not the AI.”
Why Netflix’s Experiment Matters
The success of AI in The Eternaut could set a new standard. It cuts time and costs while maintaining visual quality. AI-powered effects may soon become the norm in streaming productions.