Netflix has used generative AI in one of its shows for the first time. In the Argentine sci-fi series The Eternaut, a key scene involving the collapse of a building in Buenos Aires was created using AI tools rather than traditional visual effects.
The company’s co-CEO, Ted Sarandos, confirmed this during Netflix’s second-quarter earnings call.
The AI-assisted sequence was completed about ten times faster than it would have taken using standard VFX workflows. Sarandos said this speed meant the scene could be made without inflating the show’s production costs.
“The cost of the special effects without AI just wouldn’t have been feasible for a show in that budget,” he explained.
Netflix has framed the decision as a creative boost for production teams working with limited resources. Sarandos was careful to stress that this wasn’t automation replacing people.
“This is real people doing real work with better tools,” he said. He also pointed to uses of AI in pre-visualization, shot planning, and other areas that don’t get seen on screen.
The Eternaut is based on a classic Argentine graphic novel and follows survivors of a toxic snowfall in a post-apocalyptic Buenos Aires. The building-collapse scene marks the first time Netflix has publicly confirmed the use of generative AI for a visual effect in one of its shows.
Netflix worked with Eyeline Studios, its internal VFX division, and Argentine creatives to execute the sequence. The company hasn’t released a breakdown of how much money or time was saved in real terms, but the claim of a 10x speed gain gives a rough sense of the difference AI tools made.
The broader entertainment industry is still figuring out how to respond to generative AI. Last year, actors and writers went on strike in part to set boundaries on how studios could use the technology.
The final deals allowed AI in certain cases, but kept humans in charge of core creative roles.
Netflix’s use of AI in The Eternaut seems to follow that approach. AI was used to assist, not replace, VFX artists.
Still, not everyone in the industry is convinced. There are ongoing concerns about job losses and reduced demand for skilled labor in post-production.
Outside of VFX, Netflix is already experimenting with other uses of generative AI. The company is testing a search feature that understands natural language, and it plans to roll out interactive ads powered by AI later this year. These tools are aimed at personalizing the experience for users and speeding up internal workflows.
In a quarter that saw Netflix earn $11 billion in revenue, partly driven by the final season of Squid Game, the company has momentum. Sarandos said the combination of quality content, higher pricing, and stronger advertising performance helped push results past expectations.
Whether generative AI becomes a mainstay of Netflix productions will depend on how well it performs over time and how creators and unions react.
For now, the takeaway is simple. A show that wouldn’t have had the budget for a dramatic VFX shot was able to pull it off using AI. The sequence looks convincing, costs were kept in check, and the production stayed on schedule.
It’s a small but telling example of how AI is starting to shape what you see on screen. You might not notice it, but it’s there. And for Netflix, that might be exactly the point.