Netflix has taken a bold leap into the future of content creation by introducing its first-ever AI-generated visual effects (VFX) scene in an original series. The milestone moment comes in the Argentine science fiction drama ‘The Eternauts,’ where a dramatic building collapse was brought to life using generative AI technology.

The company made the announcement during its latest quarterly earnings call, with co-CEO Ted Sarandos highlighting the breakthrough. According to Sarandos, this is the first time Netflix has used artificial intelligence to produce final footage for one of its original films or series.

The use of AI in this instance, he explained, drastically reduced both the time and cost involved in creating the complex VFX sequence. “That VFX sequence was completed 10 times faster than it could have been completed with traditional visual VFX tools and workflows,” Sarandos said. “The cost of it just wouldn’t have been feasible for a show in that budget.”

The sequence was developed in collaboration with Eyeline Studios, Netflix’s in-house production and innovation arm. The result impressed not only the creative team behind the series but also Netflix executives, who view the project as a successful example of AI’s growing role in the creative pipeline.

Sarandos emphasized that Netflix views AI as a powerful support system rather than a replacement for human ingenuity. “It’s an incredible opportunity to help creators make films and series better, not just cheaper,” he said.

While the use of AI in entertainment continues to stir debate—especially following the 2023 Hollywood strike, where writers and actors voiced concerns over job security and creative autonomy—Netflix’s approach seems focused on complementing human creativity. The move is expected to reignite conversations around ethical and responsible use of generative AI in film and television production.

Co-CEO Greg Peters also weighed in on AI’s broader potential across the platform. He pointed to possible enhancements in user experience, such as AI-powered search functionality that understands natural language queries. “You could say something like ‘I want to watch a film from the 80s that’s a dark psychological thriller,’ and the system could quickly pull up recommendations,” Peters explained.

Additionally, Peters noted that AI could help advertisers develop more targeted and efficient campaigns, reducing both production timelines and costs, while keeping content relevant to viewers.

The announcement comes as Netflix celebrates a strong financial quarter. For the period from April to June, the streaming giant reported $11.08 billion in revenue—a 16 percent year-over-year increase. Flagship titles like ‘Squid Game: The Challenge,’ which amassed over 122 million views, played a significant role in that success.

With AI now officially part of its production arsenal, Netflix is likely to explore more ways to use the technology to enhance storytelling while maintaining the creative essence that defines its original content.