The Impact of Netflix Using Gen AI for Visual Effects
Netflix has deployed Gen AI to create visual effects in one of its original productions for the first time, marking a big moment for AI adoption in mainstream entertainment.
The streaming platform, which operates subscription video services globally, used AI-generated imagery to depict a building collapse in The Eternaut, an Argentine science fiction series.
The technology enabled the production team to complete the sequence significantly faster whilst reducing costs.
Ted Sarandos, co-CEO of Netflix, says the AI tools allow productions with constrained budgets to access sophisticated visual effects previously reserved for high-budget projects.
“The cost of it just wouldn’t have been feasible for a show in that budget,” he says.
This deployment happens as Netflix reports revenues of US$11bn for the three months ending June, a 16% increase compared to the same period last year.
Profits climbed from US$2.1bn to US$3.1bn, driven partly by the performance of Squid Game’s third series, which attracted 122 million views.
How Netflix achieved ten-fold speed improvement with AI
The AI-generated sequence showing Buenos Aires building destruction was completed ten times faster than traditional special effects methods would have permitted, according to Ted.
“That sequence actually is the very first [Gen] AI final footage to appear on screen in a Netflix original series or film. So the creators were thrilled with the result,” he says.
Gen AI’s adoption in entertainment production is a big change from traditional visual effects workflows, which typically require extensive manual labour from artists and technicians.
The Eternaut, starring Argentine actor Ricardo Darín, provided Netflix with an opportunity to test these new capabilities in a real production environment.
However, the integration of AI tools has sparked considerable debate within the industry.
Critics argue that Gen AI systems create content using existing works without obtaining proper consent from original creators, raising copyright and ethical concerns.
The Screen Actors Guild–American Federation of Television and Radio Artists raised concerns about AI regulation during the 2023 Hollywood strike, a three-month work stoppage that highlighted tensions over technology adoption.
The union, which represents performers and media professionals, sought tighter controls on AI usage to protect workers’ interests.
Industry figures express concerns over AI deployment
Film producer Tyler Perry demonstrated the industry’s apprehension when he suspended plans for an US$800m studio expansion in Atlanta during 2024.
He cites concerns that rapid advancement in AI-generated video technology, exemplified by tools like OpenAI’s Sora, could eliminate jobs across the production pipeline.
OpenAI developed Sora to generate video content from text descriptions. The system can create footage that appears professionally produced, raising questions about the future role of human creatives in content production.
The debate over AI’s role in entertainment is now extending further than technical capabilities to fundamental questions about artistic integrity.
As a result, some industry veterans have dismissed AI-generated content as inferior to human craftsmanship, arguing that it undermines the creative process.
Davier Yoon, Co-founder of Singapore-based animation studio CraveFX, takes a more pragmatic view of the technology’s potential.
“It feels like a matter of time. AI definitely opens the gate to allow smaller studios to achieve big budget-looking visuals,” he says.
CraveFX specialises in computer-generated animation for entertainment and advertising clients, putting Yoon at the forefront of digital production trends.
The technology joins existing digital tools available to visual effects artists, expanding their creative capabilities rather than replacing their expertise entirely.
