AI @ Netflix
Summary
- Netflix has progressively integrated AI technologies from primarily recommendation algorithms toward extensive use of generative AI in content creation and production, demonstrating a significant shift especially from 2024 onward.
- By 2025, Netflix's use of generative AI in visual effects, notably for the Argentinian show 'El Eternauta', accelerated production times by tenfold and reduced VFX costs by up to 30%, as highlighted by co-CEO Ted Sarandos, contributing to a 16% revenue increase in Q2 2025 ($11 billion).
- Netflix is now committed to leveraging AI widely across its streaming platform including product recommendations, search enhancements, advertising, and creative production, positioning AI as a strategic tool to improve customer experience, boost content quality, and increase operational efficiencies up to late 2025.
VIBE METER
4 AI Use Cases at Netflix
Content Production2025
Search Enhancement2025Customer Facing
Streaming Quality2024Customer Facing
Timeline
2025 Q4
Netflix doubled down on AI integration across its streaming platform, highlighting significant opportunities in recommendation systems, advertising, and overall content personalization using generative AI.
2025 Q3
Netflix implemented generative AI in original content production, notably in the series 'El Eternauta', accelerating VFX production speed by 10x and cutting costs by up to 30%. Co-CEO Ted Sarandos framed AI use as an enabler of creative expansion and cost efficiency amid industry spending pressures.
- BBC: Netflix uses AI effects for first time to cut costs
- The Guardian: Netflix uses generative AI in one of its shows for first time
- Hollywood Reporter: Ted Sarandos Says AI Will Make Movies, TV “Better, Not Cheaper”
- AI Data & Analytics: Netflix tests more AI tools
- The Conversation: Netflix is now using generative AI – but it risks leaving viewers and creatives behind
2025 Q2
Netflix tested a new AI-powered search engine enhancing recommendations, aiming to improve content discovery for subscribers.
2025 Q1
Netflix continued leveraging machine learning primarily for content recommendation, serving as a case study for AI's business impact beyond entertainment into diverse sectors.
2024 Q4
Netflix began building an internal AI developer platform with a focus on generative AI and language models, hiring AI talent to expand AI application across the organization.
2024 Q3
Netflix enhanced streaming with AI to optimize video quality dynamically based on bandwidth, predict subscriber numbers, and analyze extensive user data to optimize content delivery and experience.
2024 Q2: no updates
2024 Q1
Netflix continues employing AI algorithms primarily for personalized movie and show recommendations based on user viewing history, maintaining stable adoption of AI primarily for user experience improvements.
2023 Q4: no updates
2023 Q3: no updates
2023 Q2: no updates
2023 Q1
Netflix was recognized for AI-themed series and movies like 'Black Mirror' and 'The Social Dilemma,' continuing the trend of AI as content subject matter.
2022 Q4: no updates
2022 Q3: no updates
2022 Q2: no updates
2022 Q1
Netflix’s AI-related presence was primarily thematic within its content, featuring AI-focused movies such as 'AI Love You' and 'MOTHER/ANDROID'.