AI @ Netflix
Summary
- Netflix has significantly integrated AI technologies by 2025, especially generative AI, to enhance content creation and user experience, as exemplified by the use of AI-driven visual effects in the Argentinian series 'El Eternauta', enabling sequences to be completed ten times faster and reducing production costs.
- AI is deeply embedded in Netflixβs recommendation algorithms, streaming quality optimization, subscriber forecasting, and is now expanding into new generative AI applications, including an internal developer platform for generative AI and an AI-based search engine trial in 2025.
- Ted Sarandos, Netflix co-CEO, has highlighted AI's role chiefly as a creativity enabler rather than purely a cost-cutting tool, linking recent financial performance with a 16% revenue increase in Q2 2025 ($11B) partly attributed to AI-driven efficiencies.
VIBE METER
5 AI Use Cases at Netflix
Visual Effects2025
Search Enhancement2025Customer Facing
Streaming Optimization2024Customer Facing
Subscriber Forecasting2024
Timeline
2025 Q3
Netflix deploys generative AI in content production for the first time in 'El Eternauta', enabling 10x faster VFX completion and significant cost savings; co-CEO Ted Sarandos emphasizes AI's role in expanding creative possibilities, supporting a 16% revenue increase to $11B in Q2 2025.
- Hollywood Reporter: Ted Sarandos Says AI Will Make Movies, TV Better, Not Cheaper
- The Guardian: Netflix uses generative AI in one of its shows for first time
- BBC: Netflix uses AI effects for first time to cut costs
- PMC: A parametric analysis of AVA to optimise Netflix performance
- The Conversation: Netflix is now using generative AI β but it risks leaving viewers and creatives behind
2025 Q2
Netflix tests a new AI search engine to improve show and movie recommendations, reflecting ongoing investment in AI tools that enhance subscriber content discovery experience.
2025 Q1
Netflix's application of machine learning for personalized recommendations was cited as a case study for leveraging AI beyond entertainment, including in other sectors.
2024 Q4
Netflix initiates building an internal generative AI developer platform and increases hiring to incorporate large language models (LLMs) and generative AI across the organization.
2024 Q3
Netflix expands AI utilization in streaming quality adaptation, subscriber number prediction, and extensive user data analytics to optimize experience and performance.
2024 Q2: no updates
2024 Q1
Netflix continues to apply AI algorithms for personalized content recommendations based on user viewing history, maintaining its leadership in AI-driven streaming optimization.
2023 Q4: no updates
2023 Q3: no updates
2023 Q2: no updates
2023 Q1
Coverage highlighted popular AI-focused Netflix series and movies such as 'Black Mirror' and 'The Social Dilemma,' advancing Netflix's market position in AI-themed entertainment.
2022 Q4: no updates
2022 Q3: no updates
2022 Q2: no updates
2022 Q1
Netflix featured AI-themed movies like 'AI Love You' and 'Mother/Android,' reflecting early consumer interest in AI topics within its content library.