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Netflix Employs AI Effects for First Time to Reduce Costs

ByHilary Ong

Jul 21, 2025

Netflix Employs AI Effects for First Time to Reduce Costs

Netflix has revealed it has employed generative artificial intelligence (AI) to create visual effects in one of its original TV shows for the first time. Ted Sarandos, co-chief executive of Netflix, shared that AI helped produce a scene of a building collapsing in the Argentine sci-fi show The Eternaut.

Benefits of AI in Production

According to Sarandos, the use of generative AI enabled the production team to complete sequences faster and more affordably. The AI-generated collapse scene was completed roughly 10 times faster than traditional visual effects methods, a cost saving that made the sequence feasible for the show’s budget.

“This sequence actually is the very first generative AI final footage to appear on screen in a Netflix original series or film. The creators were thrilled with the result,” Sarandos said.

Despite the advantages, generative AI remains controversial in the entertainment industry. Critics worry that AI-generated content may infringe on the rights of original creators and threaten jobs traditionally held by human artists.

During the 2023 Hollywood strike, the Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) union called for stricter regulations on AI use. High-profile filmmakers like Tyler Perry have also expressed concerns, halting major projects due to fears about AI’s impact on employment.

Industry Perspectives on AI Adoption

Davier Yoon, co-founder of Singapore’s CraveFX animation studio, commented that Netflix’s embrace of generative AI is unsurprising given the technology’s growing acceptance among major studios.

“Generative AI adds to the list of digital tools visual effects artists can use to bring ideas to life,” said Yoon. “AI opens the gate for smaller studios to create visuals that look like big-budget productions. Ultimately, it’s the artist who decides what appears in the final image—not AI.”

Netflix announced a 16% rise in revenue to $11 billion for the quarter ending June, driven in part by the blockbuster success of Squid Game season three. Sarandos noted that AI technology allows productions with smaller budgets to access advanced visual effects previously out of reach.

Author’s Opinion

While concerns about AI replacing human creativity are valid, the technology itself should be viewed as a powerful tool that amplifies what artists can achieve. Properly used, generative AI can democratize access to high-quality visual effects and open doors for smaller creators and studios. The future lies in collaboration between artists and AI, not competition.


Featured image credit: Heute

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Hilary Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

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