In a letter to shareholders, Netflix has said that it’s leveraging machine learning and artificial intelligence as a core part of its strategy, with generative AI presenting a “significant opportunity”. It claims that AI brings about benefits for members, creators, and the overall business.
The firm told shareholders that AI and ML have been used for years at Netflix to power key functions like title recommendations and production/promotion technology for many years. It also expects to use newer types of AI too and believes it can do so well thanks to its significant data assets, scaled products, and business practices.
Netflix said that generative AI is now being used to improve the quality of content discovery features and recommendations. One new feature it has in beta is a conversational search experience that lets members use natural language to explore the catalog and find something to watch.
Generative AI is also being used to localize promo materials across a variety of languages, which Netflix says helps titles more easily travel and connect with global audiences.
Netflix said generative AI is also being used to adjust the media content itself too. It says that its creative partners are being given a broad set of tools to achieve their artistic visions. For example, the filmmakers of the movie Happy Gilmore 2 used AI and ML with Netflix’s Eyeline technology to de-age characters during a flashback scene. The producers of Billionaires’ Bunker also used GenAI tools during the pre-production phase to assist with pre-visualization, allowing exploration of wardrobe and set designs. To ensure these technologies are used responsibly, Netflix has released production guidance for creators.
Netflix is also using AI in its ads business to create a better experience for members while helping advertisers achieve better results. In the fourth quarter of 2025, Netflix is going to deploy AI to test new ad formats, generate the most relevant ad creative and placement for individual members, and accelerate the faster development of media plans.
While users won"t care about AI being used for improving the ads experience, they will likely react to the use of artificial intelligence in movies and series. Hopefully, Netflix won’t introduce an AI Slop tier any time soon full of AI generated content.