Netflix admitted to using generative AI in one of its TV shows, but only after it became widely popular - here's why that's a problem.

Netflix said it used generative AI for the first time for a scene in an Argentinean show called "El Eternauta."

Netflix used generative AI to create a scene in the Argentinian sci-fi series The Eternaut — a first for one of the streamer’s original shows or films. During an earnings call on Thursday, Netflix co-CEO Ted Sarandos said the use of AI was faster than using traditional visual effects tools and helped cut costs.

When Netflix debuted its video streaming service back in 2011, it seemed like it would usher in the end of the television commercial. Fast-forward 14 years, and Netflix is now working on growing its own ad network and it thinks this is the future of the business. Well, that and AI.

Netflix co-CEO Greg Peters also mentioned on the call that Netflix is incorporating AI into other aspects of its business, including personalization, search, and ads. Netflix introduced a new AI-powered search tool in May that allows users to find shows using prompts like, "I want something funny and upbeat."

This week, Netflix confirmed that it has used generative AI in one of its series for the first time. Co-CEO of the streamer Ted Sarandos shared the news on a company conference call yesterday, reports TechCrunch, claiming that Netflix was the platform with “the very first GenAI final footage to appear on screen.”