Netflix has taken a major leap forward in its use of artificial intelligence, using generative AI tools to produce visual effects for the first time in one of its original series. During the company’s second-quarter earnings call, Co-CEO Ted Sarandos revealed that Netflix used AI-powered tools to complete a visually intense building collapse sequence in the Argentine sci-fi drama “El Eternauta” far more efficiently than with traditional methods.
According to Sarandos, the VFX sequence, which depicts a building crumbling in the heart of Buenos Aires, was generated by Netflix’s internal production innovation unit, Eyeline Studios, in collaboration with the show’s creators. The result was a scene that took only a fraction of the time and cost normally required for such complex visuals—achieved ten times faster than with standard visual effects workflows.
Sarandos emphasized that the AI didn’t replace creators but enhanced their capabilities, describing the technology as a powerful tool that helps people “make films and series better, not just cheaper.” With tools now assisting in pre-visualization, shot planning, and effects work, even mid-range productions can access effects that were once reserved only for blockbuster budgets. This move signals a significant turning point in how visual storytelling can evolve with AI support.
Netflix’s broader strategy includes using generative AI in multiple parts of its business. Co-CEO Greg Peters noted the integration of AI in search, ad personalization, and a planned rollout of interactive ads in the second half of the year. AI-driven personalization has already begun shaping how users interact with content on the platform, and its influence will only expand from here.
The company’s financials also show strong momentum, with second-quarter revenue reaching $11.08 billion, up 16% from a year prior, and profit hitting $3.13 billion. Viewership also surged, with more than 95 billion hours of content streamed in the first half of 2025. Notably, non-English language shows accounted for a third of all views, underscoring the growing global appeal of Netflix’s catalog.
With its pioneering use of AI-powered tools, Netflix is not only increasing production efficiency but also democratizing access to high-end visual effects, giving storytellers new creative freedom. As technology continues to evolve, the line between big-budget and modest productions may soon blur, and Netflix is positioning itself at the center of that transformation.
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