Netflix is doubling down on generative AI as part of its creative workflow, even as Hollywood remains divided over the technology’s role in filmmaking.
In its latest quarterly report, the streaming giant said it is “very well positioned” to use AI advancements to enhance creativity and production efficiency. However, CEO Ted Sarandos emphasized that AI will not replace human storytelling.
“It takes a great artist to make something great,” Sarandos noted during the earnings call. “AI can give creatives better tools to improve the movie or TV experience, but it doesn’t make you a great storyteller.”
How Netflix is integrating AI into filmmaking
Netflix confirmed earlier this year that generative AI was used in The Eternaut, an Argentine sci-fi series, to simulate a realistic building collapse. The company also used AI in Happy Gilmore 2 for character de-aging and in Billionaires’ Bunker to visualize wardrobe and set designs during pre-production.
Sarandos said the company is “all in” on using AI to help creative teams work “better, faster, and in new ways,” while avoiding the trap of adopting technology just for novelty.
Industry pushback and ethical concerns
Despite Netflix’s measured approach, many Hollywood artists and unions remain skeptical. Critics argue that AI tools, often trained on copyrighted material without consent, risk displacing human jobs and violating intellectual property rights.
Concerns have intensified since OpenAI launched Sora 2, a powerful audio-video generation model capable of creating realistic clips. Actor Bryan Cranston and SAG-AFTRA have urged stronger safeguards to prevent digital impersonation.
While acknowledging AI’s potential impact, Sarandos dismissed fears that it will replace filmmakers, reaffirming Netflix’s commitment to creativity. The company also reported a 17% year-over-year revenue growth, reaching $11.5 billion — slightly below market expectations.
