Netflix’s foray into generative artificial intelligence for visual effects, starting with a building collapse scene in “El Eternauta,” is not just a technical leap. It’s a signal of a deeper psychological debate about authenticity in entertainment.
The streaming giant’s use of text-to-video AI in final footage for “El Eternauta” was reportedly 10 times faster than traditional methods.
- Netflix used generative AI for a building collapse scene in “El Eternauta,” completing it 10 times faster than traditional methods.
- This marks a significant shift from painstaking CGI and VFX work, which involves artists meticulously building digital assets.
- The text-to-video AI market is projected to reach £1.33 billion by 2029, driven by cost-cutting measures in the entertainment industry.
- Filmmakers and viewers alike express concerns about losing granular creative control and the perceived authenticity of AI-generated content.
- Hollywood faces regulatory gaps, copyright challenges, and workforce adaptation issues as AI integration accelerates.
What happens when AI becomes the invisible hand behind entertainment? This efficiency gain for Netflix’s visual effects raises profound questions about algorithmic authorship and its potential to create cognitive dissonance for viewers.
This marks a dramatic shift in visual effects, moving away from traditional CGI. Previously, VFX artists spent weeks crafting digital models, rigging, and animations. Even CGI with green screens required manual key-framing by artists.
Netflix’s generative AI approach, where algorithms instantly produce sequences from descriptions, transforms laborious craft into a faster, more conversational process. This shift, however, prompts a critical question: Is this technological progress or a replacement of human creativity with algorithmic guesswork?
The building collapse in “El Eternauta” exemplifies this change. What once required months of detailed work can now be generated rapidly. This efficiency is driven by economics, as the text-to-video AI market is predicted to be worth £1.33 billion by 2029.
This surge reflects the industry’s response to budget cuts experienced in 2022, when Netflix’s content spending declined by 4.6%, and other studios implemented cost-saving measures. Traditional VFX can cost thousands per minute, with average U.S. film budgets reaching $33.7 million (£25 million) in 2018.
Generative AI could reduce costs by 10% across the media industry, potentially up to 30% in TV and film. This could empower independent filmmakers with previously unattainable creative visions, but it also brings significant losses.
The OECD reports that 27% of global jobs face a high risk of automation due to AI. Meanwhile, the visual effects industry struggles with worker burnout, with 70% of VFX workers reporting unpaid overtime and only 12% having health insurance.
Power versus precision
AI offers filmmakers unprecedented access to complex visuals, but it can also diminish the granular control crucial for a director’s vision. Filmmaker Ascanio Malgarini, who spent a year creating the AI short film “Kraken” (2025) using tools like MidJourney and Sora, found that “full control over every detail” was “simply out of the question.”
Malgarini likened his process to that of a documentary editor, assembling vast amounts of footage rather than directing specific shots. This preference for human touch extends to viewers.
Studies indicate viewers often prefer original artworks over AI-generated copies, valuing the creative process itself.
Research from Frontiers in Psychology reveals a fascinating paradox: viewers preferred AI-generated artwork when its origin was unknown. However, upon learning it was AI-created, perceptions of authenticity and creativity dropped significantly.
Hollywood’s AI reckoning
AI advancements are occurring within a significant regulatory void. Despite U.S. congressional hearings in 2023, comprehensive federal AI legislation remains absent. The stalled U.S. Generative AI Copyright Disclosure Act offers creators limited legal protections, especially as AI systems are trained on potentially copyrighted material.
The United Kingdom is also addressing these issues, launching a consultation in December 2024 on copyright and AI reform. A proposed “opt-out” system would allow creators to prevent their work from being used in AI training data.
The 2023 Hollywood strikes highlighted industry concerns over AI displacement. While screenwriters secured protections against AI writing or rewriting scripts, and actors negotiated consent for digital replicas, these agreements often overlook VFX workers, who remain vulnerable.
Copyright litigation is increasingly shaping the AI landscape, with over 30 infringement lawsuits filed against AI companies since 2020. A landmark June 2025 lawsuit by Disney and Universal against Midjourney, alleging “plagiarism” from training on copyrighted characters, marks a significant studio copyright challenge.
Meanwhile, federal courts in the U.S. have issued mixed rulings. A Delaware judge ruled against AI company Ross Intelligence for unauthorized use of copyrighted legal content, while other courts have supported fair use defenses.
The rapid pace of AI development outstrips contract negotiations and adaptation. While AI reshapes industry demands, 96% of VFX artists report no AI training, with 31% citing this as a barrier to adoption.
Netflix’s AI integration underscores Hollywood’s struggle with fundamental questions about creativity, authenticity, and human value. Without robust AI regulation and retraining initiatives, the industry risks a future where technology outpaces legal frameworks and societal adaptation.
As audiences become more aware of AI’s presence in entertainment, the industry must navigate not only economic shifts but also the psychological biases that influence our perception and valuation of creative work.
