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Netflix is doubling down on generative artificial intelligence, integrating it across its streaming platform, according to its latest earnings report. This move signals a significant commitment to AI as it increasingly influences the entertainment landscape.
In a letter to shareholders, Netflix highlighted that machine learning and AI have been integral to its operations for years, powering title recommendations, production processes, and promotional strategies. The company now sees generative AI as a “significant opportunity” to further enhance its platform in areas such as personalized recommendations, advertising effectiveness, and content creation for both movies and TV shows.
“We’re empowering creators with a broad set of GenAI tools to help them achieve their visions and deliver even more impactful titles for members,” Netflix stated.
The streaming giant cited recent examples of its AI adoption, noting that the upcoming film *Happy Gilmore 2* utilized generative AI for character de-aging. Additionally, the production team behind the Netflix series *Billionaires’ Bunker* employed AI tools during pre-production for wardrobe and set design exploration. This demonstrates a move beyond backend optimization and into direct content creation and enhancement.
This embrace of AI arrives amidst ongoing debate within the entertainment industry about its potential impact on human employment and the ethical considerations surrounding the use of AI-generated content. Concerns revolve around the potential displacement of artists and other skilled workers, as well as the copyright and ownership of works created using AI tools trained on existing human-created content.
Addressing these concerns, Netflix CEO Ted Sarandos commented during an earnings call that AI can elevate the TV and movie experience but cannot substitute for creative talent. “We’re confident that AI is going to help us and help our creative partners tell stories better, faster and in new ways — we’re all in on that,” Sarandos stated, adding, “We’re not worried about AI replacing creativity.”
However, skepticism remains prevalent within the broader entertainment community. The use of AI to create and manage virtual actors, as explored by some production companies, has triggered criticism, particularly from labor unions like SAG-AFTRA.
SAG-AFTRA’s strike in July 2023 brought the responsible use of AI to the forefront of negotiations, resulting in landmark contractual AI protections for film and TV performers. This underscores the industry’s ongoing need to balance the benefits of technological advancement with the protection of human workers and creative integrity.
Recognizing the importance of ethical AI implementation, Netflix has released new AI-focused production guidance for its content creators. This guidance aims to promote the ethical and responsible application of AI tools in content production, ensuring that AI serves as a complement to human creativity, rather than a replacement. These guidelines offer a framework for navigating the complex ethical and practical considerations that arise with the use of generative AI in entertainment production. The details of these guidelines are not public, but they are designed to align internal practices within the Netflix production ecosystem.
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