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 steadily integrated AI technologies since 2022, evolving from content recommendation algorithms to advanced generative AI for visual effects by 2025, with notable leadership comments from co-CEO Ted Sarandos highlighting AI's role in improving creative processes and production efficiency.
  • In 2025, Netflix reported a 16% year-on-year revenue increase to $11 billion, attributing part of this growth to AI-enabled efficiencies in content production and enhanced customer experiences, such as AI-powered search and personalized recommendations.
  • Netflix's generative AI applications, particularly in the Argentinian series El Eternauta, demonstrated a tenfold acceleration in VFX production speed and significant cost savings, enabling high-quality content creation on lower budgets, signaling a shift towards AI-augmented media production.

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5 AI Use Cases at Netflix

VFX Acceleration
2025
Traditional
Generative
Agentic
Outcome
Costs
Netflix employs generative AI to create visual effects in productions such as 'El Eternauta,' allowing VFX teams to complete sequences ten times faster and at significantly reduced costs while maintaining high quality, which expands creative possibilities. [1][2][3][4]
Production Planning
2025
Traditional
Generative
Agentic
Outcome
Costs
AI tools aid Netflix’s production teams with pre-visualization and shot planning, enhancing efficiency and creativity in film and TV projects, enabling effective resource allocation and storytelling improvements. [1]
Search Enhancement
2025
Customer Facing
Traditional
Generative
Agentic
Outcome
Netflix is testing AI-driven search engines that leverage advanced algorithms to improve content discovery by helping users find relevant shows and movies faster and more accurately. [1]
Streaming Optimization
2024
Customer Facing
Traditional
Generative
Agentic
Outcome
Netflix uses AI to dynamically adjust streaming video quality based on viewers' bandwidth and network conditions, ensuring smooth playback and reducing buffering on various devices. [1][2]
Content Recommendation
2024
Customer Facing
Traditional
Generative
Agentic
Outcome
Netflix applies AI algorithms to analyze user viewing histories, search behaviors, and engagement patterns to suggest personalized movies and TV shows, enhancing user retention and engagement. [1][2][3]

Timeline

2025 Q4: no updates

2025 Q3

7 updates

Netflix deployed generative AI for the first time in production on the series El Eternauta, enabling VFX sequences to be completed 10x faster and at significantly reduced costs. Ted Sarandos highlighted AI's role in expanding creativity and lowering budgets, leading to a 16% revenue increase to $11 billion in Q2 2025. The AI use cases span pre-visualization, shot planning, and visual effects, improving ROI and production quality at scale.

2025 Q2

2 updates

Netflix tested a new AI-driven search engine to enhance user content discovery, improving search relevance and user engagement.

2025 Q1

1 updates

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

1 updates

Netflix began internally developing a generative AI platform for broader organizational use, indicating strategic investment in LLMs and next-gen AI tools.

2024 Q3

3 updates

Netflix implemented AI to optimize streaming quality dynamically and predict subscriber patterns, applying data science to improve streaming performance and resource allocation.

2024 Q2: no updates

2024 Q1

1 updates

Netflix’s AI use evolved to operationally recommend content by analyzing viewer history and preferences, improving personalization algorithms to enhance user experience.

2023 Q4: no updates

2023 Q3: no updates

2023 Q2: no updates

2023 Q1

1 updates

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

1 updates

Netflix’s AI-related presence was primarily thematic within its content, featuring AI-focused movies such as 'AI Love You' and 'MOTHER/ANDROID'.