Netflix is joining the wave of entertainment companies integrating artificial intelligence (AI) into their creative and operational pipelines — but insists the technology will serve as a tool for creators, not a replacement for them.
In its Q3 2025 earnings report, released Tuesday (21), Netflix said it is “very well positioned” to capitalize on advances in AI thanks to progress in data, product development, and business processes. CEO Ted Sarandos, however, emphasized during the company’s investor call that creativity remains at the heart of its productions.
“It takes a great artist to create something great,” Sarandos said. “AI can give creatives better tools to enhance the overall TV and film experience for our subscribers, but it doesn’t make you a great storyteller if you’re not one.”
AI as a Creative Partner
According to the company, Netflix is actively training filmmakers and producers to use generative AI (GenAI) tools that help develop ideas and “deliver even more impactful titles.”
A recent example is Happy Gilmore 2, in which filmmakers combined GenAI, machine learning (ML), and Eyeline’s volumetric capture technology to digitally de-age characters during an opening flashback.
Similarly, the production team behind Billionaires’ Bunker used AI tools in pre-production to visualise sets and costumes before shooting.
“We’re confident AI will help us and our creative partners tell stories better, faster, and in new ways,” Sarandos said. “But we’re not chasing novelty for novelty’s sake.”
Enhancing the Subscriber Experience
Netflix is also using AI to improve its personalised recommendations and content discovery features. One initiative is a beta conversational search that allows users to explore the catalog in natural language — asking questions like “find something funny and short for dinner.”
Generative AI is also being used to localise promotional materials into multiple languages, helping global titles reach wider audiences more efficiently.
On OpenAI’s Sora and the Future of Streaming
When asked about OpenAI’s Sora 2 — a new video-generation model integrated into the Sora app — Sarandos acknowledged that such tools could reshape parts of the creative process, but downplayed any existential threat.
“We’re not worried about AI replacing creativity,” he said.
For Netflix, AI may soon touch every stage of production and distribution — but the company insists its mission remains the same: empowering storytellers to tell better stories.
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