Netflix Announces First Show Created with Generative AI
In July 2025, Netflix made headlines by doing something no major streaming service had done before. For the first time, it used generative AI to create a full visual effects (VFX) scene in one of its shows. The moment came during El Eternauta, an Argentine science-fiction series, where a building collapses in a dramatic, AI-made shot.
This wasn’t just a cool effect; it was a big deal. It showed how artificial intelligence is slowly changing the way movies and shows are made. Netflix said the scene took way less time and money than using traditional methods. That means AI isn’t just a fancy tool anymore; it’s becoming part of the real process.
As viewers, we might not even notice the difference. But behind the scenes, a major shift is happening. This moment is more than just a tech upgrade; it opens the door to new ways of storytelling, but also brings up some big questions.
Is this the future of entertainment? Are we ready for it?
Context & Background
We first learned about Netflix’s use of AI in El Eternauta, an Argentine sci‑fi series. The spotlight sequence features a building collapsing in Buenos Aires, a moment both dramatic and daring. This wasn’t filmed on a physical set or animated frame by frame. Instead, Netflix leaned on its Eyeline Studios and generative AI to bring it to life.
Before this, Netflix used AI more subtly, like de‑aging actors in Pedro Páramo, echoing similar effects seen in The Irishman. But those were secondary enhancements. With El Eternauta, AI stepped into the spotlight, handling a key VFX sequence entirely on its own.
The Eternauta AI Sequence
During Netflix’s Q2 2025 earnings call, Co‑CEO Ted Sarandos shared that the Buenos Aires collapse was fully AI-generated. They typed a series of prompts into an AI video tool and “cranked it out” as the final shot.
Sarandos said the AI-made scene was delivered ten times faster than if the team had used traditional VFX pipelines. He described the result as “thrilling” for both filmmakers and viewers. This initiative didn’t just cut corners; it opened a new frontier for budget-friendly, high-impact visual storytelling.
Cost, Speed & Democratization of VFX
We see two major benefits here: faster timelines and lower costs. Netflix said the AI sequence would have been “not feasible” under the show’s usual budget.
This kind of speed and efficiency can change the game for indie filmmakers and smaller studios. Eyeline Studios’ success with El Eternauta proves that even tight‑budget productions can generate blockbuster‑level scenes without the usual cost or delay. It’s a real step toward democratizing high-end visuals.
Industry Debate & Ethical Concerns
We can’t ignore the broader concerns tied to AI in entertainment. The 2023 WGA and SAG-AFTRA strikes were largely triggered by fears that AI would erode writers’ and actors’ rights.
Netflix positions AI as an assistant, not a replacement. Sarandos said, “AI helps creators make films better, not just cheaper”.
Still, artists worry. They ask: Will AI strip jobs? Who gets credit? What about fair compensation? And which rules will govern its use? The industry is at a tipping point. Netflix will need transparency and dialogue to build trust.
Netflix’s Broader AI Strategy
Netflix isn’t stopping at visuals. Co‑CEO Greg Peters flagged plans for AI voice-driven search, imagine saying “find me an ’80s sci‑fi thriller” and instantly getting options.
They’re also boosting ad creation. Peters said AI could produce targeted promos more easily, cutting costs and boosting effectiveness. Netflix hopes AI will power smarter browsing, smarter ads, and smarter storytelling tools.
Potential Challenges & Risks
We have to keep an eye on a few possible pitfalls. First: consistency. AI is powerful but unpredictable; it may produce odd-looking visuals if misused.
Next, creativity fatigue. Relying too much on AI could make shows feel formulaic, lacking the human spark that makes stories unique.
Then there’s transparency: viewers and creators want to know which parts were AI-made. And what about the data behind the AI? If it was trained on copyrighted images, that raises legal red flags.
To avoid these problems, Netflix should be transparent, credit contributors (human and AI), and follow emerging regulations around AI in media.
Future Outlook
AI use in VFX isn’t just a one-off. We expect Netflix to layer AI into more shows, especially ones with big visual needs. They could expand into virtual production, crowd generation, digital stunts, and explainer sequences.
As they push ahead, other players like Disney+, Amazon, and HBO will be watching and likely rushing to catch up. This could spark a fresh AI arms race in entertainment.
If managed well, AI could halve production time, slash costs, and broaden creative reach. Over the next two to three years, this could redefine how we make and watch TV.
Wrap Up
Netflix’s AI debut in El Eternauta isn’t just a one-off stunt. It signals the arrival of a new era. We’re entering a space where AI supports creators, cuts budget barriers, and enables ambitious storytelling. But with great power comes great responsibility.
We must watch how Netflix and others balance innovation with fair work, honest credit, and creative integrity. The future of entertainment is changing, and AI is writing the next chapter.
Frequently Asked Questions (FAQs)
Netflix began using AI in the early 2010s to improve how it recommends shows and manages streaming quality for users across the world.
Yes, Netflix uses AI to learn what we like to watch. It then suggests shows or movies we might enjoy based on our viewing history and ratings.
The Mitchells vs. The Machines is a fun Netflix movie where smart robots and AI gadgets try to take over the world, but one family fights back.
Netflix now uses generative AI to create special effects in shows. In 2025, it made a building collapse scene using AI instead of traditional VFX tools.
Yes, Netflix uses generative AI. In 2025, it created a building collapse scene using AI for the first time in the show El Eternauta
Disclaimer
This content is for informational purposes only and not financial advice. Always conduct your research