In an admission that may alarm Hollywood unions, Netflix has said it used generative artificial intelligence to produce visual effects in its original series “El Eternauta,” making cost-prohibitive scenes possible on a limited budget. Is this an opportunity for creators or a threat to their jobs?
Introduction: The first on-screen appearance of generative AI
Netflix said on Thursday that it used generative artificial intelligence to produce visual effects appearing on screen for the first time in one of its original series, utilizing a technology that has been a source of concern across Hollywood. This announcement marks a watershed moment as the technology transitions from being an experimental behind-the-scenes tool to a direct contributor to the final content watched by millions.
Co-CEO Ted Sarandos praised artificial intelligence as “a fantastic opportunity to help creators make better movies and shows, not just cheaper ones.” This statement aims to reassure the creative community, but it also highlights the economic reality driving this adoption: efficiency and cost reduction.
“El Eternauta”: A case study
Sarandos provided an example with the Argentine science fiction series “El Eternauta,” where creators wanted to show a building collapsing in Buenos Aires—a visual effect that would have exceeded the project’s budget. The creative team collaborated with Eyeline Studios, an in-house production innovation group at Netflix, to create the dramatic scene with the help of artificial intelligence.
Sarandos said during the company’s second-quarter earnings call: “This visual effects sequence was completed 10 times faster than it could have been using traditional visual effects tools and workflows. Its cost also would not have been possible for a series with this budget.” Sarandos stated that the sequence is the first final generative AI footage to appear on screen in an original Netflix series or film.
This example demonstrates the transformative power of AI in democratizing high-quality production. Projects with limited budgets can now achieve ambitious visual visions that were previously restricted to massive-budget films.
A flashpoint in Hollywood
Artificial intelligence has become a flashpoint in Hollywood since the 2023 labor strikes, which resulted in new guidelines for using the technology. The primary concern is that AI could replace human work, from writers and actors to visual effects artists. Netflix’s admission of using this technology directly in production is likely to spark new debates and put union guidelines to the test.
The challenge facing Hollywood is striking a balance between adopting tools that can enhance creativity and increase efficiency, and protecting the jobs and livelihoods of thousands of skilled professionals who form the backbone of the industry.
Future uses of AI at Netflix
Co-CEO Greg Peters said Netflix may find other ways to leverage generative artificial intelligence to improve the user experience—including giving viewers the ability to use spoken words to find something to watch. Peters said: “Saying, ‘I want to watch an 80s movie that is a dark psychological thriller,’ and getting some results… you couldn’t do that in our legacy experiences. So that’s super exciting.”
The announcement represents another opportunity for generative artificial intelligence, Peters said, as brands and marketers seek to create compelling content. Peters said: “We think these generative technologies can lower that hurdle repeatedly over time and enable us to do it in more and more locations.”
Conclusion: A tool or a replacement?
Netflix’s use of AI in “El Eternauta” raises a fundamental question: Will artificial intelligence be a tool that empowers creators to achieve more, or will it become a replacement for them? Netflix’s answer is clear: it views it as a tool. But the creative community will watch closely to see how this usage evolves in the future. The final outcome will depend on how the industry manages this transition and whether it prioritizes human-machine collaboration over replacing one with the other.
