Netflix’s AI moment: a launchpad or a trap?

Ted Sarandos, the co-Chief Executive of Netflix, made recent headlines by confirming Argentinian sci-fi series ‘The Eternaut’ had used generative artificial intelligence (AI).

Sarandos claimed AI, used for the first time in a Netflix original to depict a building collapse, would help make movies and television series “cheaper” and “better”.

Simone Ferriani, Professor of Entrepreneurship at Bayes Business School (formerly Cass), said AI involvement should not come as a surprise but raised questions over whether it is there to empower or replace.

“This announcement marks an important – if not surprising – moment in history for the screen industries,” he said.

“For the first time, a mainstream platform like Netflix has openly admitted to deploying generative AI not as an experiment in some niche lab, but as a working tool in a commercial production that’s now streaming to millions.

“AI has been lurking behind the scenes for quite some time, silently optimising script breakdowns, storyboard mock‑ups, and casting analytics. What’s new is that it now touches the image itself.

“The VFX scene in question was reportedly completed ‘ten times faster’ than through traditional methods, the sort of benefit that prompted James Cameron, creator of The Terminator, to point out that AI might one day ‘eliminate some of the mundane tasks involved in filmmaking, freeing directors to do more shots in less time’.

“Netflix’s message is clear and mirrors the language being used by OpenAI, Adobe, Google and others: AI is a tool to empower, not replace.

“However, history has taught us that once a technology proves it can save money, particularly in an industry as cost-sensitive as entertainment, the logic of replacement becomes tempting. What begins as augmentation often slides towards substitution.

“The Hollywood strikes of 2023 were, in large part, a response to this very anxiety. Writers and actors demanded, and won, protections against the unauthorised use of AI to generate scripts, clone voices, or replicate performances. The dam may still hold, but The Eternaut suggests waters are rising.”

The use of AI in film also revisits the question of ownership of material. Earlier this year, the UK government launched a consultation on copyright exceptions for text and data mining (TDM), which received vocal opposition from creators.

Professor Ferriani said Netflix’s use of AI brings these questions into sharp focus.

“The implications of Netflix’s AI breakthrough extend far beyond workflow,” he continued.

“They touch the very foundations of copyright, authorship, and ownership. If a visual sequence is generated with the help of AI, who owns it – the artist, the tool’s developer, the algorithm itself?

“While the Government has since softened its stance, the signal was clear. Regulators are scrambling to keep pace with technology, while creative labour risks being collateral damage in the rush to innovate.

“The Eternaut was produced by an Argentine cast and crew, using AI tools that cut costs and saved time. Pressing questions must be asked about the sourcing of datasets used to train those tools. Were they trained on copyrighted works?”

Despite these reservations, Professor Ferriani believes AI opportunities need to be embraced rather than feared.

“The greatest artistic revolutions have always emerged from new tools, like the printing press, the camera, the sampler and computer-generated imagery. Likewise, AI is unveiling a landscape filled with extraordinary creative opportunities.

“However, history also shows that how we adopt these tools, and who benefits, matters immensely.

“AI in film and television is not just a technical story, it’s a story about power dynamics, labour, competence transformation, and the kind of creative future we want to build. If AI is to be a co-author in the next era of storytelling, we need more transparency, more accountability, and more courage to ask uncomfortable questions.

“AI should not be embraced as a shortcut, but as an opportunity to work faster, think deeper and create enhanced storytelling we could only dream of once upon a time.”

All quotes can be attributed to Simone Ferriani, Professor of Entrepreneurship at Bayes Business School.