Netflix has officially entered the era of AI-driven filmmaking, revealing that it has used generative artificial intelligence (GenAI) to create final visual effects in its upcoming Argentine sci-fi series El Eternauta. This marks the first time the streaming giant has confirmed using AI to produce actual on-screen content.

During Netflix’s second-quarter earnings call, co-CEO Ted Sarandos announced that a dramatic scene involving a collapsing building in El Eternauta was generated using GenAI tools. He emphasized the benefits, noting that the AI-assisted visual effects were completed at a fraction of the usual cost and in significantly less time — roughly ten times faster than traditional methods.

“This is the first GenAI final footage ever to appear in a Netflix series,” Sarandos stated. “AI offers creators new ways to work faster and smarter — not just more cheaply.”

The scene was developed through a collaborative effort between Netflix’s internal teams and external producers, Sarandos said. He added that AI tools are already being deployed across various production stages, including pre-visualization, planning shots, and even digital de-aging, tasks that previously required big budgets and lengthy post-production.

Co-CEO Greg Peters echoed the enthusiasm for AI’s potential, stating that the technology is also enhancing user experience across the platform. Netflix has already introduced AI-enhanced search functionality and is preparing to roll out interactive, AI-powered advertisements by the second half of 2025.

Despite growing debate in Hollywood over the role of AI — particularly from industry unions concerned about job displacement — Netflix is positioning GenAI as a collaborative tool. Sarandos stressed that real people remain at the core of the creative process, with AI serving to augment rather than replace their work.

The company’s financials were equally headline-worthy. Netflix reported Q2 2025 revenue of $11.08 billion, up 16% year-over-year, with a net income of $3.13 billion. Viewers streamed more than 95 billion hours of content in the first half of the year, with non-English language programming accounting for about one-third of total watch time — underscoring Netflix’s global reach.

As El Eternauta prepares to debut with cutting-edge, AI-enhanced visuals, Netflix is clearly betting that generative technology will redefine how stories are told — blending efficiency with creativity in a rapidly evolving entertainment landscape.