Netflix has revealed its first-ever show that was created using generative AI. The streaming giant's co-CEO, Ted Sarandos, said that the company was "thrilled" with the results. The company used the technology to reduce costs on "The Eternaut," an Argentine production based on a science fiction comic. Sarandos confirmed that "The Eternaut" is the first Netflix title to incorporate fully AI-generated shots in its final footage. This includes a sequence depicting the collapse of a building in Buenos Aires. According to Sarandos, such an effect would not have been cost-effective for a production of "The Eternaut's" size without the use of AI.

What Netflix co-CEO Ted Sarandos said about using AI in production

During Netflix's recent quarterly earnings call, Sarandos told analysts: "In fact, that VFX sequence was completed 10 times faster than it could have been completed with visual, traditional VFX tools and workflows. The creators were thrilled with the result. We were thrilled with the result. And more importantly, the audience was thrilled with the result. So, I think these tools are helping creators expand the possibilities of storytelling on screen, and that is endlessly exciting."

This is not the first time Netflix has turned to AI for production. Previously, Sarandos has highlighted the company's use of AI in Rodrigo Prieto's film Pedro Páramo. He explained how it significantly reduced the cost of de-ageing effects, especially when compared to the much more expensive approach used in Martin Scorsese's The Irishman.

During Netflix's first quarter earnings call in April, Sarandos said: "In fact, the entire budget of the film was about the VFX cost on 'The Irishman.'

Despite this, the use of AI continues to be a complex topic within Hollywood. In 2023, concerns over its use played a key role in the actors' and writers' strikes that temporarily halted production. Viewers also criticised Marvel Studios for using AI-generated credit art in Secret Invasion on Disney+. At the same time, filmmaker Tyler Perry said he delayed expanding his studio due to the capabilities AI already offers.

One of the most likely areas to see changes is visual effects, especially as audience expectations for action-heavy and superhero films put pressure on production costs. As Netflix's recent developments show, the impact of AI is extending beyond just big-budget films.

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