Netflix Wants to Use AI Across Its Entire From Platform to Content Production Pipeline

Netflix is planning to bet heavily on generative artificial intelligence (AI) across different verticals, the company stated on Tuesday. In a letter to the shareholders, sharing the revenue details and achievements during Q3 2025, the streaming giant highlighted new AI features and projects it is currently working on, and the areas it wants to bring the technology to. The company's co-CEO, Ted Sarandos, reportedly also highlighted that AI will help the platform's creative partners in telling better stories faster and in newer ways.

Netflix Commits to AI Integration Across Platform

In the letter to shareholders, the company highlighted that it has always relied upon technology to deliver high quality experience to subscribers. After using AI and machine learning (ML) in its recommendation engine for years, the company said it is now focusing on integrating AI. The streaming giant claimed that its “significant data assets” as well as product and business processes are enabling it to leverage the benefits of the technology.

Separately, in the earnings call, Sarandos also emphasised using AI across the content production pipeline. “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, but we're not chasing novelty for novelty's sake here,” Sarandos was quoted by TechCrunch as saying.

One of the areas where Netflix is pushing the integration of AI is in content recommendation and discovery tools. Currently, the streaming platform is beta testing a conversational search experience that will allow users to explore the catalogue and discover new titles via natural language queries. Additionally, the company is also using AI to distribute promotional materials in different languages to help the content reach a wider audience.

Focusing on AI's role in production, the letter highlighted that computer-generated imagery (CGI) effects can be replaced with AI outputs. Sharing the example of Happy Gilmore 2, the company said that the makers used AI to de-age the characters in a flashback scene. Other instances include using AI to explore wardrobe and set designs.

The company also intends to use AI for its ad business to test and introduce new ad formats. These new formats will be focused on generating the most relevant ad creatives and placements for users. This will be rolled out in the next quarter.

Notably, in Q3 2025, Netflix witnessed a year-on-year (YoY) revenue growth of 17 percent. Calling it “in line with our forecast,” the company said the primary drivers were subscription growth, pricing adjustments, and increased ad revenue. Additionally, its ongoing dispute with Brazilian tax authorities also played a role in keeping operating margins lower than expected.