Netflix Ventures into AI: 'El Eternauta' Becomes a VFX Game-Changer

Netflix's Innovative Use of Generative AI in El Eternauta

Netflix's debut use of generative AI in the Argentine sci-fi series, *El Eternauta*, marks a significant innovation in the entertainment industry. The technology was applied to render a dramatic building collapse scene much faster than traditional methods, thereby streamlining the visual effects (VFX) production process. Co-CEO Ted Sarandos expressed that this implementation has considerably reduced production costs, facilitating high-quality filmmaking at a fraction of the usual expense. By incorporating this cutting-edge tool, Netflix aims to not only enhance the visual storytelling experience but also broaden what is possible in modern cinema. This approach mirrors broader technological shifts in the industry, as studios explore AI's potential to increase efficiency while redefining creative boundaries. [source]

While Netflix's innovative use of generative AI in *El Eternauta* is garnering attention for its cost and time efficiencies, it is not without controversy. The integration of AI into visual effects has prompted discussions about the potential impact on employment within the VFX sector. Concerns highlight the risk of job displacement for skilled artists who traditionally handle complex CGI tasks. Despite these fears, Sarandos reassures that the purpose of incorporating AI is to augment human creativity rather than to replace it. This outlook aligns with the company's broader strategy to integrate technology without overshadowing human input. The debates surrounding AI usage underscore the need for a balanced approach that respects artistic integrity while embracing technological advancements. [source]

The deployment of generative AI in Netflix's *El Eternauta* is expected to have ripple effects across the entertainment landscape, prompting questions about the future of creative professions. While AI has demonstrated remarkable capabilities in enhancing production quality and reducing timeframes, its impact on traditional roles within film production remains a subject of concern. Critics argue that reliance on AI could lead to a homogenization of content, diluting the nuanced artistry that comes with human-created effects. Nonetheless, the potential of AI to lower barriers for smaller productions by providing access to high-quality VFX cannot be overlooked. As Netflix continues to experiment and innovate, the emphasis remains on finding equilibrium between technological efficiencies and maintaining the richness of creative expression. [source]

The Role of Generative AI in Modern Filmmaking

The integration of generative AI in modern filmmaking is becoming a pivotal force, reflecting both technological advancement and a reimagining of creative workflows. As seen in Netflix's pioneering use of AI for its Argentinian sci-fi series *El Eternauta* [News URL](https://www.theguardian.com/media/2025/jul/18/netflix-uses-generative-ai-in-show-for-first-time-el-eternauta), this cutting-edge technology was instrumental in creating the impressive visual effect of a building collapse. Co-CEO Ted Sarandos highlighted that this approach not only reduced production costs but also sped up the creative process, showcasing the potential of AI as an augmentative tool rather than just a cost-cutting measure.

Generative AI is revolutionizing the visual effects (VFX) sector by enabling faster and more cost-effective production solutions. In the case of *El Eternauta*, AI allowed for the development of complex visual scenes that were previously both time-consuming and expensive, thereby democratizing access to high-quality special effects for smaller production companies. This technological leap represents a shift in how we perceive the production process, where AI can address traditional logistical challenges, making high-caliber creativity more accessible [News URL](https://www.theguardian.com/media/2025/jul/18/netflix-uses-generative-ai-in-show-for-first-time-el-eternauta).

Despite these advancements, the integration of AI into filmmaking raises significant concerns, particularly regarding job displacement within the VFX industry. The potential for AI to automate tasks previously performed by skilled artists has sparked discussions about the future landscape of employment in creative sectors. While industry leaders like Sarandos argue that AI will serve as an enhancement tool, supporting human creativity rather than replacing it, there remains a palpable fear of job loss among professionals whose traditional roles may be rendered obsolete [News URL](https://www.theguardian.com/media/2025/jul/18/netflix-uses-generative-ai-in-show-for-first-time-el-eternauta).

The ethical implications of AI's role in modern filmmaking are also under scrutiny, with questions surrounding intellectual property, ownership rights, and artistic integrity. As AI systems often draw from vast datasets of existing work, issues arise about whether AI-generated content infringes upon the creative rights of original content creators. Legal frameworks and industry regulations are evolving to address these complex challenges, aiming to balance innovation with fair recognition and compensation for artistic contributions [News URL](https://www.theguardian.com/media/2025/jul/18/netflix-uses-generative-ai-in-show-for-first-time-el-eternauta).

Netflix's financial success, marked by its $11 billion revenue in the second quarter of 2025, illustrates the potential economic benefits that generative AI can contribute to the entertainment industry [News URL](https://www.theguardian.com/media/2025/jul/18/netflix-uses-generative-ai-in-show-for-first-time-el-eternauta). The profitability of using AI-driven solutions in filmmaking, alongside the success of blockbuster hits like *Squid Game*, underscores how strategically incorporating AI can bolster financial performance while reshaping content creation strategies in a competitive market.

AI and the Future of Visual Effects

The integration of artificial intelligence into the realm of visual effects (VFX) is reshaping the entertainment industry. One prominent example is Netflix's use of generative AI in the Argentinian sci-fi series, *El Eternauta*. By employing AI to simulate the collapse of a building in Buenos Aires, Netflix not only achieved a visually stunning effect but also managed to reduce production time significantly and cut costs [source]. This move highlights the transformative potential of AI technologies in film production, offering filmmakers new tools to push the boundaries of visual storytelling while enhancing efficiency and innovation.

However, the use of generative AI in visual effects also raises critical concerns about the future of the workforce in the entertainment industry. As AI-driven tools automate tasks traditionally performed by skilled VFX artists, fears about job displacement have intensified, echoing wider sentiments following the 2023 Hollywood strikes. Industry leaders like Netflix's co-CEO Ted Sarandos argue that AI should augment rather than replace human creativity, emphasizing its role in enabling more complex and ambitious projects [source]. Yet, the discussion continues around ensuring fair labor practices and protecting artists' rights in this evolving landscape.

The financial implications of integrating AI into visual effects are significant. By reducing the cost and time associated with complex VFX production, Netflix aims to democratize high-quality visual storytelling, offering independent filmmakers and smaller studios access to tools once reserved for big-budget productions [source]. This strategic approach helps bolster Netflix's profitability, which recently saw a 16% rise in second-quarter revenue, partly driven by successful originals like *Squid Game* and a growing advertising sector [source]. Such advancements could redefine the economic dynamics of content creation globally.

Generative AI's ability to generate high-quality, realistic visual effects suggests a future where creative workflows in filmmaking become more fluid and dynamic. While enhancing production capabilities, this technological leap also prompts a critical evaluation of regulatory and ethical dimensions in AI deployment. With potential issues around copyright, authorship, and algorithmic bias, there is a pressing need for comprehensive guidelines to govern AI use in creative processes [source]. Stakeholders in the industry are thus called upon to balance innovation with ethical considerations to foster an inclusive and sustainable artistic ecosystem.

Economic Impact: Netflix's Financial Performance Boost

Netflix's recent financial performance showcases a notable upswing, partially attributed to the company's innovative use of generative AI in its content production. In the second quarter of 2025, Netflix reported an impressive revenue of $11 billion, marking a 16% increase compared to the previous year. A sizable portion of this financial boost can be traced back to the success of hit series like *Squid Game*, which continues to captivate audiences worldwide with its intriguing plot and high-quality production [1](https://www.theguardian.com/media/2025/jul/18/netflix-uses-generative-ai-in-show-for-first-time-el-eternauta).

The strategic incorporation of generative AI has positioned Netflix at the forefront of technological innovation in the entertainment industry. By employing AI for visual effects in series such as *El Eternauta*, Netflix has not only reduced production costs but also significantly accelerated project timelines. Co-CEO Ted Sarandos emphasizes that the technology's primary role is to enhance creativity and efficiency, rather than merely serving as a cost-cutting measure [1](https://www.theguardian.com/media/2025/jul/18/netflix-uses-generative-ai-in-show-for-first-time-el-eternauta).

This financial performance indicates a positive trajectory for Netflix, as the integration of generative AI holds the potential to democratize high-quality VFX production. Smaller teams can now achieve effects that were previously out of reach, thereby expanding the creative possibilities available to content creators. This democratization helps maintain Netflix's competitive edge in the global streaming market, as it continually seeks to deliver compelling content to its subscribers [1](https://www.theguardian.com/media/2025/jul/18/netflix-uses-generative-ai-in-show-for-first-time-el-eternauta).

Despite the economic advantages, AI implementation has stirred conversations around the potential for job displacement within the VFX sector. Industry insiders express concern that while AI may boost profitability, it could also threaten traditional roles in VFX production. Netflix remains intent on using AI as a complementary tool to human creativity, but the discussion underscores the complexity of balancing innovation with workforce considerations [1](https://www.theguardian.com/media/2025/jul/18/netflix-uses-generative-ai-in-show-for-first-time-el-eternauta).

Industry Concerns: Job Security and AI

The integration of artificial intelligence in various industries brings both excitement and apprehension, particularly concerning employment. Within the entertainment sector, the recent use of generative AI by Netflix in the production of the Argentinian sci-fi series *El Eternauta* serves as a prime example. This innovative technology, applied to create complex visual effects, significantly alters the landscape of film production. Some industry insiders regard AI as a tool that can revolutionize the creative process by enhancing efficiency and cutting down costs. However, it also ignites concerns about job security, especially among visual effects artists, due to the potential for automation to replace traditional human roles. Despite reassurances from Netflix's co-CEO Ted Sarandos, who portrays AI as a means to augment human creativity rather than replace it, the specter of job displacement looms large.

Amidst concerns over job disruption, AI's role in the entertainment industry highlights a broader discussion about the future of work in various sectors. The capability of AI to automate processes potentially leads to a decrease in demand for manual job functions, with visual effects being just one affected area. This situation echoes the unease seen in other industries where technological advancements have changed labor markets. The challenge lies in balancing technological progress with job preservation, as well as ensuring that workers can transition into new roles that may arise from AI advancements. Labor unions and industry bodies are already engaging in discussions to establish guidelines that protect jobs and define the ethical boundaries of AI use.

The apprehension surrounding AI's influence on job security in the entertainment industry is part of a larger conversation about the socio-economic impacts of AI on global labor markets. As AI technologies become more embedded in everyday tasks, there is an increasing need for strategies to mitigate potential negative effects on employment. This may involve retraining programs and new educational paradigms to equip the workforce with the skills necessary to thrive in an AI-driven economy. While AI presents opportunities for innovation and increased efficiency, it is imperative that policymakers, businesses, and educational institutions collaborate to address the resulting socio-economic challenges and ensure a fair transition for workers across industries.

Public Reactions to AI in Filmmaking

The incorporation of generative AI in filmmaking, as demonstrated by Netflix's innovation with the Argentinian series *El Eternauta*, has sparked a variety of public reactions. A significant portion of viewers and industry professionals are intrigued by the potential economic advantages AI brings to visual effects (VFX). Notably, using AI to create a building collapse effect in the series accelerated production and slashed costs significantly [1](https://www.theguardian.com/media/2025/jul/18/netflix-uses-generative-ai-in-show-for-first-time-el-eternauta). This technology, which allows effects to be generated faster than traditional methods, has been lauded for potentially democratizing access to high-quality production capabilities for smaller studios and independent filmmakers. Supporters see this as a new frontier that could expand creative expression while keeping budgets manageable.

Nevertheless, the excitement around the advancements brought by AI is tempered by serious concerns about employment and creative integrity within the film industry. A prevalent worry is the potential for job displacement, particularly among VFX artists whose roles may be increasingly automated [1](https://www.theguardian.com/media/2025/jul/18/netflix-uses-generative-ai-in-show-for-first-time-el-eternauta). Industry professionals fear that the burgeoning use of AI might undermine the job security of many talented individuals who have traditionally excelled in creating intricate visual effects through manual techniques. The ethical implications loom large as AI-generated content might inadvertently utilize existing creative works without proper attribution or compensation, thereby straining the relationships between technology and rights holders.

Furthermore, some critics argue that while AI enhances efficiency, it might also lead to a homogenization of content where artistic nuances are sacrificed for speed and budget considerations. The debate extends to concerns about the depth and authenticity of storytelling. With AI at the helm, there's a risk that filmmaking could become overly reliant on algorithms, thus diluting the unique human elements that give each story its charm and emotional resonance [2](https://www.ctvnews.ca/sci-tech/article/netflix-says-it-used-genai-in-argentine-tv-series/). The skepticism stems from a fear that a wave of AI-driven productions might prioritize efficiency over the subtleties and creativity that have traditionally defined cinematic art.

Nonetheless, some voices in the public eye posit that AI in filmmaking could be a catalyst for creative expansion, not only augmenting the quality of visual storytelling but also creating new opportunities for collaboration. Netflix's stance, particularly through the words of Ted Sarandos, sees AI as a supportive tool that complements rather than competes with human creativity [1](https://www.theguardian.com/media/2025/jul/18/netflix-uses-generative-ai-in-show-for-first-time-el-eternauta). The argument here hinges on the idea that AI can handle repetitive and time-consuming tasks, thereby freeing up creative professionals to focus on innovation and artistic direction. This perspective views AI as part of a collaborative environment where technology enhances human vision rather than overshadowing it.

Future Implications of AI in the Entertainment Industry

The future implications of artificial intelligence in the entertainment industry are vast and multifaceted. With generative AI techniques now being utilized by companies like Netflix, there is a potential revolution on the horizon that could reshape how films and shows are produced. For instance, Netflix's use of AI in its Argentinian sci-fi series, *El Eternauta*, to create building collapse effects, illustrates how AI can speed up production and reduce costs significantly. Co-CEO Ted Sarandos argues that AI serves as a tool to enhance filmmaking rather than just cutting expenses, suggesting a future where AI could democratize high-quality content production for even smaller studios by making complex VFX sequences more accessible [1](https://www.theguardian.com/media/2025/jul/18/netflix-uses-generative-ai-in-show-for-first-time-el-eternauta).

Despite these promising advancements, the integration of AI raises important questions and concerns, particularly relating to employment within the industry. With AI now capable of performing tasks traditionally handled by skilled artists, such as creating intricate visual effects, there is a palpable fear of job displacement among VFX artists and other creative professionals. This concern mirrors the anxieties that emerged during Hollywood's 2023 strikes, where the potential of AI to replace human jobs was a central issue. However, leaders like Sarandos maintain that AI will support human creativity rather than replace it, although critics still worry about the homogenization of content and the preservation of artistic integrity [1](https://www.theguardian.com/media/2025/jul/18/netflix-uses-generative-ai-in-show-for-first-time-el-eternauta).

On a broader scale, the increased use of AI in entertainment could spur significant changes beyond the economic sphere. Social implications include ongoing debates over creativity and authorship, with AI-driven solutions drawing concerns over rights and ownership of AI-generated work. Moreover, as countries each grapple with the ramifications of AI technology, different regulatory environments concerning intellectual property and workforce protection are anticipated. This could lead to varying national stances on AI, potentially affecting international film collaborations and the global entertainment landscape. As AI becomes more widespread, it is likely that labor unions will continue advocating for measures to protect creative professionals against algorithmic bias and ensure fair compensation for creative contributions irrespective of the medium used [1](https://www.theguardian.com/media/2025/jul/18/netflix-uses-generative-ai-in-show-for-first-time-el-eternauta).