Netflix is embracing generative AI as a supportive tool in filmmaking, not a replacement for human creativity, according to CEO Ted Sarandos. In its quarterly earnings report and subsequent investor call, Netflix stated it is “very well positioned to effectively leverage ongoing advances in AI,” emphasizing that the technology will enhance, rather than disrupt, the creative process. Sarandos stressed that while AI can improve efficiency and unlock new storytelling possibilities, it cannot substitute for the rare talent required to craft truly great content. “It takes a great artist to make something great,” he said, adding that AI “doesn’t automatically make you a great storyteller if you’re not.” Netflix has already begun integrating AI into production workflows. In the Argentine series The Eternaut, generative AI was used to generate a realistic scene of a building collapsing. For Happy Gilmore 2, AI helped de-age actor Adam Sandler in the film’s opening sequence. Meanwhile, producers of Billionaires’ Bunker used AI during pre-production to visualize wardrobe and set designs. These applications highlight AI’s role in streamlining technical aspects of filmmaking, allowing creatives to focus on narrative and artistic vision. Despite these advances, concerns remain across the entertainment industry about AI’s broader impact. Artists and unions, including SAG-AFTRA, have raised alarms over the use of AI to generate content without consent, particularly when it involves deepfaking actors. The release of OpenAI’s Sora 2, a video generation model capable of producing realistic clips from text prompts without strong safeguards, intensified these fears. Actor Bryan Cranston and SAG-AFTRA have urged OpenAI to implement stricter controls to prevent unauthorized use of likenesses. Sarandos acknowledged the potential for AI to affect user-generated content and lower-quality media, but he remains confident that high-quality, original storytelling will remain dominant. Drawing a parallel to music, he noted that despite years of AI-generated songs, established artists like Taylor Swift continue to thrive. “AI seems to be mostly a tool for musicians to take their sound in new directions,” he said, suggesting a similar dynamic in film and television. Netflix’s approach reflects a cautious but committed stance. The company has not changed its long-standing strategy of prioritizing human-driven storytelling, even as it explores AI’s potential in areas like advertising and content production. Co-CEO Greg Peters reiterated that Netflix’s AI investment will focus on enhancing creativity, not replacing it. While Netflix’s revenue rose 17% year-over-year to $11.5 billion, it fell short of expectations. Still, the company remains optimistic about AI’s role in future growth. Sarandos emphasized that Netflix is “not chasing novelty for novelty’s sake,” but rather focused on using AI to help creators tell stories “better, faster, and in new ways.” As AI tools become more accessible, the entertainment industry faces a pivotal moment. Netflix’s strategy—using AI as a behind-the-scenes enabler rather than a front-line replacement—may set a precedent for how major studios balance innovation with artistic integrity. For now, the message is clear: AI is a powerful tool, but the heart of great entertainment remains human.