In a landmark move for the streaming industry, Netflix has admitted to using generative AI to create a scene in its new sci-fi series The Eternaut — marking the first time the streamer has used AI on one of its original productions. The announcement came during the company’s Q2 earnings call on Thursday, when co-CEO Ted Sarandos revealed the technology helped both speed up production and significantly cut costs.
“That VFX sequence was completed 10 times faster than it could have been completed with traditional VFX tools and workflows,” said Sarandos. “Also, the cost of it just wouldn’t have been feasible for a show in that budget.”
The AI-generated scene involved an elaborate building collapse set in Buenos Aires, Argentina — a critical moment in the large-scale adaptation of the classic Argentine graphic novel El Eternauta.
Sarandos emphasized that while cost-cutting was a key advantage, Netflix views AI as an opportunity to support creators, not replace them.
“We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper,” he added.
Netflix’s Growing Embrace of AI
The use of AI in The Eternaut is part of a broader technological strategy at Netflix, which has increasingly turned to AI-powered features across its platform.
In May, Netflix rolled out a new conversational AI search tool in its mobile app, allowing users to find content by entering phrases like “something funny and upbeat” or “a story about friendship and betrayal.” Additionally, the company is experimenting with AI-assisted ad technology, such as placing sponsored content in immersive visual settings tailored to the user’s viewing — for example, putting a product ad in a Stranger Things-themed backdrop without interrupting the stream.
These AI initiatives are being positioned by Netflix as tools to aid both content discovery and more efficient production pipelines as competition in the streaming space becomes increasingly fierce.
A Flashpoint in Hollywood’s AI Debate
The revelation comes at a sensitive time in Hollywood, where ongoing debates around the use of generative AI in film and television have sparked concern among writers, artists, and visual effects professionals.
While some in the industry see promise in AI-enhanced workflows — particularly for making complex sequences possible within mid-tier budgets — others worry it may devalue skilled labor and diminish human creativity.
Netflix is not the only production company exploring this territory. Other recent AI-generated projects, like the experimental short film Ancestra, have underscored both the creative potential and the awkward limitations of current generative video technology. Still, Netflix appears to be aiming for a balance between innovation and artistic integrity.
A Milestone for AI in Streaming
The AI-generated VFX in The Eternaut represents more than just an efficiency experiment; it could be the beginning of a larger shift in how effects-heavy content is made. If successful, the technique may pave the way for lower-budget productions to achieve more ambitious visuals without ballooning costs or lengthy timelines.
As the streaming wars continue and consumer demand for high-quality original content remains strong, AI could become an increasingly vital tool in Netflix’s arsenal. Whether this will enhance the creative process or erode it remains a critical question — one that the entertainment industry will be debating for years to come.