Netflix has revealed that it used generative artificial intelligence (GenAI) to power visual effects in El Eternauta, a highly anticipated Argentine sci-fi series, marking the first time the streaming giant has integrated AI-generated footage into the final cut of an original production.
The disclosure came during Netflix’s Q2 2025 earnings call, where co-CEO Ted Sarandos described the milestone as a sign of how GenAI can significantly enhance creative storytelling while reducing production costs and timelines. Sarandos said a key scene in El Eternauta—featuring a massive building collapse—was made possible through AI-developed effects in collaboration with Eyeline Studios, Netflix’s in-house virtual production team. He noted that the visual sequence would have been “too expensive and time-consuming to make” using traditional methods.
The scene was completed “ten times faster” and at a fraction of the usual cost, with Sarandos emphasizing that both the creators and audiences were thrilled with the results. “It was a perfect case where GenAI amplified the creative vision rather than replacing it,” he added.
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El Eternauta, adapted from a revered Argentine comic book from the 1950s, follows a man trapped in a deadly snowstorm that blankets Buenos Aires, caused by an alien invasion. The show is being billed as Netflix’s biggest original production in Latin America to date.
The development signals a major leap in the application of AI in mainstream entertainment, particularly in visual effects-heavy genres where budget constraints have often limited artistic ambition. According to Sarandos, AI now allows creators with limited budgets to achieve blockbuster-quality scenes. He stressed, however, that the use of AI is intended to be additive, not a replacement for human talent.
Beyond production, Netflix is also ramping up GenAI deployment across other segments of its business. Co-CEO Greg Peters said AI is already being used to power interactive voice search, personalized recommendations, and increasingly sophisticated advertising models. A new interactive advertising feature is expected to roll out later in 2025, offering users more engaging and tailored ad experiences.
The company’s earnings report underscored Netflix’s momentum. It reported a 16% increase in revenue year-on-year to $11.08 billion for Q2 2025, with net income reaching $3.13 billion. Sarandos said these results were driven in part by continued growth in international markets and a surge in viewership for non-English titles, which accounted for about one-third of total hours watched last quarter.
However, the move to incorporate AI in content creation has raised concerns, particularly within Hollywood. The Writers Guild of America and SAG-AFTRA previously staged a months-long strike over studios’ potential use of AI to automate creative work. The unions demanded guarantees that human writers and actors would not be replaced or have their likenesses and work replicated without consent.
Sarandos addressed those fears directly during the earnings call. “We’ve been incredibly transparent with the creative community about how and why we use these tools. The goal is not to eliminate jobs but to enable more creative expression,” he said.
He cited AI’s role in processes such as pre-visualization, script drafts, character de-aging, and now visual effects.
Netflix’s experiment with GenAI in El Eternauta could set a precedent for how artificial intelligence is embraced by other major studios. If successful, it may pave the way for mid-tier productions to rival blockbuster spectacles in terms of visual storytelling, without requiring inflated budgets or extended production timelines.
With its growing use of AI, strong earnings, and expanding global content strategy, Netflix appears intent on leading a new era in entertainment—one where technology supports rather than supplants human creativity.