Netflix is fully embracing generative AI technology to enhance its content creation and viewer engagement, signaling a significant shift in the entertainment industry. However, this move has sparked a divide among industry professionals, with some expressing concerns over the implications of AI-generated content on creativity and employment.

Netflix is launching a new TV experience designed to enhance user interaction with a more intuitive and modern interface. Key features include improved content discovery, better recommendations based on user preferences, and an upgraded mobile search option utilizing generative AI. The changes aim to elevate the overall viewing experience and maintain Netflix's edge in technology and entertainment.

Netflix has utilized generative AI in its original series "The Eternaut," marking a significant milestone as the first instance of AI-generated footage in a Netflix production. Co-CEO Ted Sarandos highlighted that the AI-assisted visual effects, specifically a building collapse scene, were completed much faster and more cost-effectively than traditional methods. The company is exploring further integration of generative AI in future projects to enhance production quality and accessibility.

Netflix is set to introduce interactive mid-roll and pause ads utilizing generative AI in 2026, aiming to enhance advertising experiences for its subscribers. The company reported a significant increase in its ad-supported subscription tier, with 94 million subscribers opting for the lower-priced option since its launch in November 2022.

Netflix has introduced new guidelines for the use of generative AI in its production processes, aiming to navigate the complexities and ethical considerations of integrating AI technologies in filmmaking. These guidelines are part of the company's broader strategy to ensure responsible and innovative use of AI while maintaining creative integrity.