Netflix is going “all in” on generative AI, even as Hollywood remains divided over its use in entertainment. In its latest quarterly report, the streaming platform said it is “well positioned” to use AI to improve creativity, storytelling, and production efficiency.
In a letter to investors, Netflix explained that AI will not replace human creativity but will enhance it. The company emphasized that storytelling remains an art form driven by human imagination.
“It takes a great artist to make something great,” Netflix CEO Ted Sarandos said during an earnings call. “AI can provide better tools to support creators, but it doesn’t automatically make someone a great storyteller.”
How Netflix Is Using Generative AI
Netflix has already started integrating generative AI into its projects. The company used AI to create a realistic building collapse scene in The Eternaut, an Argentine sci-fi series. The technology also appeared in Happy Gilmore 2, where it helped de-age characters, and in Billionaires’ Bunker, aiding pre-production visualizations of wardrobe and set designs.
Sarandos said Netflix believes AI will help its creative teams tell better stories, faster and in more innovative ways. “We’re all in on that,” he added, “but we’re not chasing novelty for novelty’s sake.”
Hollywood’s Ongoing Debate Over AI
While Netflix is optimistic about AI’s potential, many in Hollywood remain cautious. Artists and unions argue that AI models trained on copyrighted content without permission could threaten jobs and intellectual property rights.
Concerns grew after OpenAI introduced Sora 2, an advanced video generation model capable of producing lifelike clips. The launch reignited discussions about deepfake risks, with actor Bryan Cranston and SAG-AFTRA urging stricter protections for performers.
Sarandos acknowledged that tools like Sora might influence content creation but dismissed fears of AI replacing creativity. “We’re not worried about AI replacing storytellers,” he said.
In other news read more about OpenAI Co-Founder Abandons AI Tools to Build Chatbot by Hand
Despite the controversy, Netflix continues to post strong financial results, reporting a 17% year-over-year revenue increase to $11.5 billion, slightly below expectations. The company remains focused on combining technology and creativity to stay ahead in the entertainment industry.
