In a significant development for the entertainment industry, Netflix has incorporated generative artificial intelligence (AI) into the production of one of its original shows for the first time. The Argentinian science fiction series El Eternauta, adapted from the celebrated 1957 comic by writer Héctor Germán Oesterheld and artist Francisco Solano López, marks a bold step forward in the integration of AI-powered tools in mainstream content creation.
This announcement came directly from Netflix co-chief executive Ted Sarandos, who confirmed during the company’s second-quarter earnings call that AI was utilized to create key visual effects in the series. The move aims to demonstrate that AI can be a tool for enhancing storytelling and improving production efficiency, rather than merely reducing costs or displacing workers.
A Technological Milestone for Netflix
According to Sarandos, El Eternauta is the first show where Netflix has used generative AI to produce actual footage, particularly in creating a visual effects scene involving a collapsing building in Buenos Aires. He emphasized that AI allowed the visual effects team to complete the scene ten times faster than would have been possible using traditional VFX workflows.
“Using AI-powered tools, they were able to achieve an amazing result with remarkable speed,” Sarandos said. “That VFX sequence was completed 10 times faster than it could have been with traditional tools.”
This enhanced speed and efficiency translated directly into cost savings. The use of AI meant that Netflix could fund and produce the show at a much lower budget than typically expected for a series involving high-end effects.
Creative Freedom, Not Job Cuts
Despite the growing debate over AI in creative industries, Netflix’s leadership stressed that this use of technology supports, rather than replaces, human talent. Sarandos made it clear that real artists and technicians were behind the implementation of these AI tools.
“This is real people doing real work with better tools,” he said. “Our creators are already seeing the benefits in production through pre-visualisation, shot planning, and certainly visual effects.”
In contrast to growing anxieties over AI replacing creative professionals, Sarandos described generative AI as a complementary innovation, one that expands the possibilities of visual storytelling and helps bring ambitious projects to life without blowing up production budgets.
Industry Context and Labor Concerns
The use of generative AI in film and TV production remains controversial. In 2023, Hollywood actors and writers went on strike largely over concerns about AI’s role in undermining creative jobs. Their demands led to a hard-fought agreement ensuring that new technologies, including generative AI, would remain under the control of workers and unions.
While some fear AI could render large segments of the post-production and creative workforce obsolete, others argue that tools like these are necessary to meet modern demands in both storytelling scope and audience expectations.
Netflix’s strategy suggests it is trying to walk a middle path — deploying AI where it enhances value, while still preserving human creative control. If successful, it could set a precedent for the rest of the streaming and production industries.
About ‘El Eternauta’
Originally a serialized comic published in Argentina, El Eternauta tells the story of a mysterious and deadly snowfall that devastates Buenos Aires. Survivors of the toxic storm are forced to confront alien invaders, totalitarian regimes, and the collapse of civilization itself.
Netflix’s adaptation brings this tale to a global audience with a visually rich, emotionally charged presentation. The use of AI in its production helped tackle scenes of complex urban destruction that would otherwise have been prohibitively expensive to realize.
The show is being produced in collaboration with Argentinian visual effects experts, who worked alongside Netflix teams to implement AI technology within the existing VFX pipeline.
Netflix’s Financial Momentum
The news about AI usage came as Netflix reported $11 billion in revenue for the second quarter of 2025, a 16% increase year-on-year. The company credited part of its performance to the final season of the global hit series Squid Game and the growth of its advertising-supported tier, which is on track to double in size this year.
Market analysts have responded positively to Netflix’s innovations and financial results. Mike Proulx, VP of research at Forrester, noted that Netflix’s success comes from a convergence of great content, pricing strategies, and ad momentum.
“Netflix’s better-than-expected quarter is a result of great content, increased pricing, and advertising momentum hitting all at once,” said Proulx.
Netflix is also in the final stages of rolling out its proprietary ad tech platform, which executives say will position the company as a dominant force in the video advertising space.
AI as the Future of Production?
Netflix’s decision to integrate AI into high-profile projects is likely to inspire other studios and streaming platforms to follow suit. As production budgets balloon and competition intensifies, generative AI may prove to be a valuable tool for efficiency, cost control, and creative expansion.
However, whether the broader entertainment workforce embraces or resists the trend will depend on transparency, collaboration, and fair labor practices.
In the meantime, viewers can expect a visually stunning and innovative experience from El Eternauta — and perhaps many more AI-assisted series in the future.
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