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Netflix just made its stance on AI crystal clear: it’s leaning in, but not letting the tech take the wheel.
In its latest quarterly earnings report, Netflix told investors that it’s “very well positioned to effectively leverage ongoing advances in AI.” No vague promises or hype—just a clear signal that the company sees generative AI as a tool for good storytelling, not an automated storyteller.
Let’s unpack what this actually means.
AI Behind the Curtain, Not on Center Stage
CEO Ted Sarandos put it simply during Tuesday’s earnings call: “It takes a great artist to make something great… AI can give creatives better tools… but it doesn’t automatically make you a great storyteller if you’re not.”
Translation: Netflix isn’t aiming to replace writers or actors with algorithms. Instead, it’s using AI to help the people behind the camera do their jobs better—and maybe a little faster.
Here are a few ways Netflix has already started putting generative AI to work:
- In the Argentine sci-fi series The Eternaut, Netflix used AI to create a building-collapse scene. Yep, that final footage made it into the show.
- Happy Gilmore 2 used the tech to de-age characters in its opening scene.
- The production team for Billionaires’ Bunker used generative AI during pre-production to explore wardrobe and set design options.
So, we’re not talking about AI actors taking over. We’re talking about smarter, faster ways to build or enhance visuals.
Photo by Andrijana Bozic on Unsplash
Still a Divisive Topic in Hollywood
Of course, not everyone in the entertainment industry is thrilled about AI’s growing presence.
Many artists have spoken out about tools like language models and generative video apps being trained on their work—often without consent. And there’s real concern about what that could mean for creative jobs, especially in visual effects.
Take, for example, the recent backlash around the AI-generated actress “Tilly Norwood.” While she hasn’t actually booked any roles yet, the very idea sparked debate. Meanwhile, OpenAI’s release of its new model, Sora 2, stirred up more controversy by allowing deepfakes of actors and historical figures—prompting calls from SAG-AFTRA and even Bryan Cranston for stronger safeguards.
So no, it’s not all smooth sailing.
Photo by Nikhil Mistry on Unsplash
Netflix’s Take: Use AI, But Don’t Chase Shiny Objects
Sarandos reassured investors that Netflix is not chasing AI “novelty for novelty’s sake.” The goal is to serve better storytelling and make production more efficient—not to uproot the industry.
That’s a key distinction, especially as studios weigh how far to push AI into their workflows. While some creators worry about being replaced, Netflix seems focused on giving human creators better tools instead of replacing their roles entirely.
Steady Growth Amid the Conversation
Despite all the buzz, this quarter wasn’t just about AI. Netflix also reported a 17% year-over-year revenue bump, hitting $11.5 billion. That’s growth—but still a bit under its forecast.
Still, if this earnings call tells us anything, it’s that AI is going to be a big part of Netflix’s future, whether it’s helping imagine a better costume or creating the perfect explosion.
And honestly? That might not be such a bad thing—so long as the storytellers are still calling the shots.
Keywords: Netflix AI strategy, generative AI in film, Netflix earnings report, artificial intelligence in entertainment, Ted Sarandos AI comments, The Eternaut Netflix, AI special effects, Happy Gilmore 2 AI, Sag-Aftra AI concerns, OpenAI Sora deepfake
