Netflix deploys generative AI to cut costs in Argentine sci-fi production

Netflix has used generative artificial intelligence to produce a visual effects scene in an original series for the first time, marking a new step for the streaming platform.

Netflix has used generative artificial intelligence (AI) in one of its original shows for the first time, the company confirmed this week.

The streaming giant applied the technology in The Eternaut, an Argentine science fiction series, to create a dramatic building collapse scene. According to Netflix co-CEO Ted Sarandos, the generative AI helped the production team finish the complex sequence ten times faster and at significantly lower cost than traditional methods.

“The cost just would not have been feasible for a show of that budget,” Sarandos said, calling it “the very first generative AI final footage to appear on screen in a Netflix original.”

His comments came as Netflix posted a 16 percent rise in revenue to 11 billion dollars for the April to June quarter, driven by strong performances from shows like the final season of Squid Game, which has drawn over 122 million views.

Generative AI tools can create realistic video and imagery from text prompts. Their growing use in entertainment, however, remains contentious. Critics warn of ethical concerns, copyright issues, and potential job losses. All of these topics were central during the 2023 Hollywood strikes.

Filmmaker Tyler Perry notably paused an 800 million dollar studio expansion in 2024, citing fears over AI’s rapid advancement.

Still, many in the industry say AI is becoming indispensable. Davier Yoon, co-founder of Singapore’s CraveFX studio, said it gives smaller teams access to blockbuster level visual quality. “Ultimately, it is the artist who decides what is in the final image, not AI,” he added. 

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