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 co-CEO Ted Sarandos revealed that the streamer has used generative AI while making movies and TV shows. That could lead to problems with artists.

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 used generative AI to create a scene in the 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.

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."

The Netflix streaming service has admitted to using artifical intelligence for the first time in order to scale up the look of a foreign sci-fi series.