Rudy Lai
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AI @ Netflix

Streaming leader, original content
Industry
Last updated
July 3, 2025 at 10:44 AM

Summary

  • Netflix has progressively integrated AI technologies from traditional recommendation algorithms to advanced generative AI tools by 2025, driving both creative production efficiency and enhanced customer experiences.
  • By mid-2025, Netflix employed generative AI in production (notably the Argentine series El Eternauta) to accelerate visual effects delivery up to ten times faster and reduce costs significantly, while expanding storytelling capabilities under the leadership of co-CEO Ted Sarandos.
  • Netflix is now fully committed to leveraging AI across its entire streaming ecosystem, including recommendations, ad monetization, and creative production, building internal generative AI platforms with plans to continue expanding AI-driven innovation through 2026.

VIBE METER

More AI announcements = more VIBE
Q1 23Q2 23Q3 23Q4 23Q1 24Q2 24Q3 24Q4 24Q1 25Q2 25Q3 25Q4 25Q1 26🔥🔥🔥🔥

5 AI Use Cases at Netflix

VFX Production
2025
Traditional
Generative
Agentic
Outcome
Costs
Netflix integrates generative AI to create visual effects sequences faster and at lower costs during production, as exemplified in the series El Eternauta, enabling smaller budget projects to achieve high-quality visuals and expand storytelling possibilities. [1][2][3]
Creative Assistance
2025
Traditional
Generative
Agentic
Outcome
Revenue
Netflix uses AI-powered tools such as pre-visualization, shot planning, and virtual production assistance to enhance creativity and planning efficiency in filmmaking, enabling creators to execute content better and faster. [1][2]
Search Enhancement
2025
Customer Facing
Traditional
Generative
Agentic
Outcome
Netflix tests and implements advanced AI-powered search engines to improve subscribers' ability to discover and find relevant movies and TV shows faster, enhancing user satisfaction. [1]
Streaming Optimization
2024
Customer Facing
Traditional
Generative
Agentic
Outcome
Netflix employs AI to dynamically adjust streaming quality based on users' bandwidth and predict subscriber numbers to optimize video delivery and network utilization during peak times, improving service reliability and user experience. [1][2]
Content Recommendation
2024
Customer Facing
Traditional
Generative
Agentic
Outcome
Netflix uses AI algorithms to analyze vast amounts of user data such as viewing history and interaction patterns to recommend personalized movies and TV shows, increasing subscriber engagement and retention. [1][2][3]

Timeline

2026 Q1: no updates

2025 Q4

2 updates

Netflix declared it is 'all in' on AI, focusing on generative AI to enhance its streaming platform comprehensively, including content recommendations and ads business. The strategy positions Netflix as an evolving data-rich ecosystem connecting AI-driven production, distribution, and monetization.

2025 Q3

3 updates

Netflix debuted generative AI use in original content production, notably in El Eternauta, completing VFX ten times faster and at significantly reduced cost. Co-CEO Ted Sarandos emphasized AI’s enhancement of creativity and efficiency, with Netflix reporting $11B revenue in Q2 2025, up 16% year over year. AI tools were used for pre-visualization, shot planning, and virtual production, driving ROI improvements and enabling high-quality results under low budgets.

2025 Q2

2 updates

Netflix tested advanced AI search engines to enhance subscribers’ ability to find content and maintained leadership insights on AI’s transformative impact on company culture and work future.

2025 Q1

1 updates

Netflix’s use of machine learning for movie suggestions continued, highlighting AI’s role in enhancing user engagement though broader business applications of similar technology outside entertainment were noted.

2024 Q4

1 updates

Netflix began building an internal generative AI developer platform and actively recruiting AI talent to integrate large language models across the organization, signaling a strategic AI investment and internal capability growth.

2024 Q3

3 updates

Expanding AI use cases, Netflix optimized streaming quality dynamically based on bandwidth and predicted subscriber metrics using data science and AI, aiming to improve performance and network efficiency.

2024 Q2: no updates

2024 Q1

1 updates

Netflix employed AI recommendation algorithms to personalize content delivery, showcasing early-stage AI adoption mainly focused on improving user experience via content suggestions.

2023 Q4: no updates

2023 Q3: no updates

2023 Q2: no updates

2023 Q1

1 updates

Netflix’s AI-themed entertainment gained public attention with listings of top AI-related series and movies, highlighting content such as Black Mirror and The Social Dilemma.

2022 Q4: no updates

2022 Q3: no updates

2022 Q2: no updates

2022 Q1

1 updates

Netflix featured as a subject in recommended AI-themed movie lists, reflecting early cultural interest in AI-related content but no evidence of internal AI technology application.