Netflix admits using Gen AI for one of its shows to cut costs

By | July 21, 2025
Netflix generative AI use building collapse scene in El Eternauta

In a groundbreaking move, Netflix has confirmed it used generative AI to create visual effects in the Argentine sci-fi series El Eternauta. This is the first time the platform included AI-generated content in one of its original shows.

During its Q2 2025 earnings call, Netflix co-CEO Ted Sarandos explained the decision. The platform chose AI to manage production costs while still meeting high creative standards.

The Scene That Showcases AI’s Power

The AI-generated content appears in the final episode of El Eternauta. It features a dramatic building collapse in Buenos Aires. This complex visual scene was originally too costly to produce with traditional VFX methods.

Thanks to generative AI, Netflix completed the scene ten times faster than usual. The result saved both time and money—without cutting back on quality.

What Role Did Generative AI Play?

Generative AI creates new images, video, or audio using machine learning. In this case, the technology helped simulate the collapse of a large building. The AI model rendered elements like falling debris, smoke, and environmental changes.

Human artists then refined the output. They added realism and ensured the scene aligned with the show’s visual tone. While AI handled the base visuals, humans kept creative control.

Why Netflix Chose El Eternauta

El Eternauta is based on a famous Argentine comic. The story follows survivors of an alien invasion in a snow-covered Buenos Aires. Its political undertones and science fiction setting made it ideal for visual experimentation.

With a modest budget and high production demands, the show gave Netflix the perfect testing ground for AI. Traditional VFX would have stretched resources. AI made it possible to keep the vision intact without breaking the bank.

AI as a Creative Tool—Not a Replacement

Netflix emphasized that AI wasn’t used to replace human jobs. Instead, it served as a tool to support human creators. Ted Sarandos said, “This isn’t about cutting corners. It’s about giving artists smarter tools.”

By using AI to generate drafts or base layers, artists can work faster and focus on storytelling. Netflix wants to improve production efficiency without harming the creative workforce.

Industry Reactions: Excitement and Worry

The announcement sparked strong reactions. Some praised Netflix for using AI responsibly. They see it as a way to help smaller productions deliver better visuals. Others expressed concern about future job security in the film industry.

Many fear that studios might use AI to reduce costs at the expense of creative jobs. Industry unions and creators continue to monitor how studios use AI tools. The conversation around ethics and labor remains ongoing.

Netflix’s AI Strategy Going Forward

Netflix plans to use AI in more areas. This includes:

  • Storyboard and pre-visualization
  • Scene planning and location modeling
  • Search and content recommendations
  • Marketing personalization

Even with these plans, the company insists it will prioritize human oversight. The goal is to assist creative teams, not eliminate them.

A New Era in Content Creation

Netflix’s experiment with AI marks a major shift. For the first time, artificial intelligence played a direct role in the final visual product. It shows how technology can make storytelling more accessible—even with limited budgets.

The success of El Eternauta may encourage other studios to explore AI. As long as they stay transparent and respect artists, AI could become a powerful creative partner.

Final Thoughts

Netflix has opened the door to a new kind of content creation. With El Eternauta, the company showed that AI can enhance stories without taking away the human touch.

As the industry adapts, this moment may be remembered as a turning point. The future of storytelling could include both artists and algorithms—working side by side.