By all accounts, Netflix’s foray into generative artificial intelligence (GenAI) is less a cautious experiment and more a full-throttle embrace of the future. Unveiled during its Q2 2025 earnings call, the streaming giant revealed that AI is no longer just a behind-the-scenes concept—it’s already shaping what we see on screen.
The first real-world example comes from El Atonata, an Argentine thriller series, where GenAI was used to render a dramatic building collapse. According to co-CEO Ted Sarandos, this scene—usually a budget-draining and time-intensive VFX task—was completed with remarkable speed and cost-efficiency using AI-generated footage. It’s a milestone, not just for Netflix, but for the entire industry.
What makes this move particularly significant is that Netflix isn’t positioning AI merely as a cost-cutting shortcut. Sarandos was keen to stress that AI is a creative tool—an enabler, not a replacer. From pre-visualization to shot planning and high-end effects like de-aging, these once-expensive capabilities are now becoming accessible to productions of all sizes. In effect, AI is democratising storytelling.
Behind the screen, co-CEO Greg Peters hinted at broader changes coming. AI is already powering Netflix’s search tools and personalization engines, but its next big frontier lies in advertising. Interactive, AI-driven ads are slated to roll out by late 2025, building on the platform’s earlier success with tailored search functions. If executed well, this could redefine how users interact with ads—making them more relevant, less intrusive, and maybe even… watchable.
Financially, the company appears stronger than ever. With $11.08 billion in Q2 revenue and over 95 billion hours of content streamed in the first half of the year, Netflix isn’t just innovating—it’s thriving. The fact that one-third of that viewership is for non-English content also reflects a global appetite that AI, with its rapid localization and dubbing tools, could soon be better equipped to serve.
Of course, there are questions yet unanswered. What does this mean for the human artists, designers, and VFX professionals whose work AI may partially displace? Netflix’s rhetoric suggests augmentation, not replacement—but the industry will be watching closely to see how that plays out.
Still, from a tech and business standpoint, Netflix’s integration of GenAI feels like the beginning of a new era. If El Atonata is any indication, the future of content creation won’t just be faster and cheaper—it might just be better.
Verdict:
Netflix’s GenAI rollout marks a bold and potentially transformative moment for entertainment. It’s not just a shift in how stories are made—it’s a sign of how stories might evolve.
