Streaming giant Netflix embraces AI in filmmaking to boost creativity and efficiency, while the entertainment industry continues to debate the role of artificial intelligence in storytelling.
As the entertainment industry wrestles with when — and how — to use generative AI in filmmaking, Netflix is doubling down on its belief that the technology can enhance rather than replace creativity.
In its latest quarterly earnings report, Netflix told investors it is “very well positioned to effectively leverage ongoing advances in AI.” While the company has no plans to make AI the backbone of its productions, it sees the technology as a powerful tool to help creatives work smarter.
“It takes a great artist to make something great,” said Netflix CEO Ted Sarandos during the earnings call. “AI can give creatives better tools to enhance their overall TV/movie experience for our members, but it doesn’t automatically make you a great storyteller if you’re not.”
AI on Set: From Collapsing Buildings to De-Aged Characters
Earlier this year, Netflix made headlines by using generative AI in the Argentine series “The Eternaut” to create a dramatic building collapse scene. Since then, other productions like “Happy Gilmore 2” have used AI to de-age characters, while “Billionaires’ Bunker” employed it in pre-production for visualizing wardrobe and set design.
Sarandos added, “We’re confident that AI will help us and our creative partners tell stories better, faster, and in new ways. We’re all in on that, but we’re not chasing novelty for novelty’s sake.”
Industry Divided Over AI’s Role
The AI boom has created deep divisions across Hollywood. Many artists and actors worry that generative tools trained on their work without consent could threaten jobs or blur creative ownership.
Recent tensions grew when OpenAI unveiled its Sora 2 model, which can generate lifelike audio and video — without built-in safeguards to stop users from recreating actors or historical figures. In response, SAG-AFTRA and actor Bryan Cranston have called for stronger guardrails to prevent deepfake misuse.
When asked about Sora’s impact, Sarandos noted that while AI could reshape parts of the creative process, Netflix isn’t worried about AI replacing creativity.
“We’re not worried about AI replacing creativity,” he reiterated, emphasizing Netflix’s focus on using technology to empower storytellers, not replace them.
Despite a 17% year-over-year revenue growth to $11.5 billion, Netflix fell short of its forecast — but its forward-looking AI strategy suggests the company sees technology as key to staying ahead in the streaming race.
