Netflix isn’t pretending to play coy about AI anymore. The streaming giant confirmed during its latest earnings call that it leaned on generative AI to create visual effects for The Eternaut, an Argentine post-apocalyptic drama.

According to reporting from Engadget, co-CEO Ted Sarandos revealed that the creators of The Eternaut wanted a collapsing building sequence to anchor a key moment in the story. Instead of outsourcing the shot to a traditional VFX house, they turned to generative AI tools.

"Using AI-powered tools, they were able to achieve an amazing result with remarkable speed," Sarandos said. "In fact, that VFX sequence was completed 10 times faster than it could have been completed with... traditional VFX tools and workflows."

This doesn't appear to be a one-off either. Reports suggest that AI-generated ads will start appearing mid-stream in 2026 for Netflix's ad-tier subscribers. But The Eternaut marks a milestone. According to Sarandos, it contains "the very first Gen AI final footage to appear on screen in a Netflix original series or film."

Predictably, not everyone is applauding. Hollywood’s creative community remains uneasy — and increasingly vocal — about generative AI in production. Films like The Brutalist and Late Night with the Devil faced backlash for even light AI involvement. The issue is already on the radar of SAG-AFTRA, and it’s poised to become a flashpoint in future industry negotiations.