Netflix is taking a cautious but confident step into the world of generative artificial intelligence (AI), signaling that it sees the technology as a creative enhancer rather than a replacement for human storytellers.
In its quarterly earnings report released on Tuesday, the streaming giant told investors it is “very well positioned to effectively leverage ongoing advances in AI,” adding that the technology could improve efficiency and expand creative possibilities in film and TV production.
“It takes a great artist to make something great,” Netflix CEO Ted Sarandos said during the earnings call. “AI can give creatives better tools to enhance their overall TV and movie experience for our members, but it doesn’t automatically make you a great storyteller if you’re not.”
Netflix has already begun experimenting with generative AI in production. Earlier this year, the company used the technology in the Argentine sci-fi series The Eternaut to simulate a collapsing building. Since then, filmmakers behind Happy Gilmore 2 reportedly used AI to de-age characters, while the producers of Billionaires’ Bunker employed it in pre-production for wardrobe and set design.
Sarandos said the company believes AI will ultimately make creative work “better, faster, and more innovative,” but emphasized that Netflix is “not chasing novelty for novelty’s sake.”
The announcement comes amid rising tensions in Hollywood over the use of AI. Many artists fear that AI tools—often trained on copyrighted works—could threaten their livelihoods. The debate intensified following OpenAI’s release of Sora 2, an AI model capable of generating hyperrealistic videos without guardrails against deepfaking actors or historical figures.
The Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) and actor Bryan Cranston have since urged OpenAI to introduce stronger protections.
When asked about Sora’s impact on Netflix, Sarandos acknowledged that AI could affect the creative ecosystem but maintained confidence in human-led storytelling. “We’re not worried about AI replacing creativity,” he said.
Netflix’s quarterly revenue rose 17% year-over-year to $11.5 billion, though the figure fell slightly below company forecasts.
