Netflix is Using AI in Editing: Is This a Watershed Moment?

For the first time, Netflix has used AI in its post-production process. The streaming giant has been producing its own films and TV shows for years now, but never before has it used AI to expedite its editing and visual effects.

'The Eternaut', an Argentine sci-fi series, was the guinea pig. According to Ted Sarandos, co-CEO of Netflix, the AI tools give projects with tight budgets access to a level of visual effects they wouldn't otherwise be able to afford.

“The cost of it just wouldn’t have been feasible for a show in that budget,” he says.

This is a watershed moment for Netflix. With AI now viewed as a cost-effective alternative to human labour, it is likely the studio will begin using it more and more frequently. 

Right now, Netflix’s finances are looking very healthy, with revenues hitting US$11bn for the three-month period ending June. This marks a 16% increase compared to the same period in 2024.

It remains to be seen the size of the effect AI will have on Netflix's bottom line, but all signs point to profit. 

The use of AI in post-production does, however, pose some real questions for off-camera personnel in the entertainment industry and the future of their roles.

How AI could transform filmmaking

Netflix has revealed that the post-production of some scenes in 'The Eternaut' was completely 10 times faster using AI than conventional methods would typically allow.

One scene in particular was the destruction of a building, which would have normally required extensive CGI.

“That sequence actually is the very first AI final footage to appear on screen in a Netflix original series or film. So the creators were thrilled with the result," Ted says.

The series featured renowned Argentine actor Ricardo Darín, providing Netflix with a substantial testing ground for its innovative capabilities in a real-world production context. However, the deployment of AI technologies has also triggered a surge of discourse within the entertainment community.

Critics argue that many Gen AI systems are trained on copyrighted footage without the consent of the owners of that IP.

The Screen Actors Guild–American Federation of Television and Radio Artists have already expressed their formal concerns over AI, most recently during the 2023 Hollywood strike which delayed the filming and release of films and shows across the board.

It is likely the use of AI in more off-camera work will result in similar disputes.

A weary, wary industry

Concerns about the rapid deployment of AI technologies became most apparent when film producer Tyler Perry postponed an US$800m studio expansion in Atlanta, citing the abrupt rise of AI tools, such as OpenAI’s Sora, that might threaten job security across the production sector.

Tools like Sora and Google's Veo3 represent a real step forward in the capability of AI video generators, so much so that they are raising fundamental questions about the future role of human creativity in the entertainment world, as well as questions about artistic integrity and authenticity.

Many industry experts remain sceptical of AI-produced content full stop. Currently, it is still perceived as inferior to traditional human-driven processes, though given the speed of its improvement it will likely catch up quickly.

Some industry figures are more open to the idea of AI. Davier Yoon, co-Founder of Singapore-based animation studio CraveFX, believes it could be a transformative technology.

“It feels like a matter of time. AI definitely opens the gate to allow smaller studios to achieve big budget-looking visuals,” he says. 

Discussing the impacts that AI applications like Sora might have on the entertainment industry, author and broadcaster Richard Osman said: “I think the industry will be hollowed out, and I use that term very specifically.”

“At the top end, there’s always going to auteurs and artisans. People will pay a premium for humanity, but the people doing that will of course be rich people.

“At the bottom end, there will still be loads of producers and content creators who will do what they always do — have great ideas.

“It’s the stuff in the middle that goes, like linear television. There is absolutely no reason why in two years time a human being should be anywhere near that.”