Netflix's Chief Creative Officer Ted Sarandos has countered filmmaker James Cameron's recent comments about AI making movies cheaper, suggesting instead that the true opportunity lies in making movies "10% better" rather than just 50% cheaper. During Netflix's Q1 2025 earnings call, Sarandos highlighted how AI tools are already democratizing high-end visual effects for smaller productions and enhancing the creative process across various production stages.

Behind-the-Scenes Intelligence: AI is transforming production workflows in ways that extend beyond cost savings

The conversation around AI in filmmaking often focuses on budget reduction, but Netflix's approach reveals a more nuanced strategy. Sarandos outlined how creative teams are already integrating AI into their workflows to enhance production quality.

• AI tools are currently being used for set references, pre-visualization (previs), VFX sequence preparation, and shot planning

• These applications streamline technical processes while allowing creators to focus on storytelling and creative decisions

• Previously, advanced visual effects like de-aging were exclusively available to big-budget productions, but AI is democratizing these capabilities

From The Cutting Room to The Set: Netflix's real-world AI implementation demonstrates dramatic technical advancement in just five years

Sarandos offered a compelling case study comparing two projects from the same cinematographer that demonstrates the rapid evolution of AI-powered filmmaking tools.

• Five years ago, Netflix used cutting-edge de-aging technology on Martin Scorsese's The Irishman, where Rodrigo Prieto served as cinematographer, creating significant on-set complexity and massive costs

• This year, Prieto directed his first feature film for Netflix, Pedro Paramo, in Mexico, using AI-powered de-aging tools

• The entire budget of Pedro Paramo was comparable to just the VFX costs on The Irishman

• The AI-powered approach delivered similar or better results while reducing both technical limitations and cost barriers

• This advancement allowed a first-time director to access tools that were previously restricted to industry veterans with massive budgets

The Director's Vision: Netflix positions AI as a creative enabler rather than a replacement for human ingenuity

While some in the industry express concern about AI potentially replacing creative roles, Netflix's approach positions the technology as an enhancement to human creativity.

• The focus remains on finding ways for AI to "improve the member and the creator experience," according to Sarandos

• By handling technical challenges more efficiently, AI potentially frees creators to focus on storytelling and artistic decisions

• Small and mid-budget productions can now achieve visual ambitions that would have been financially impossible before

• The technology enables creators to execute their vision more fully rather than being constrained by technical or budgetary limitations

Final Cut: AI integration signals a fundamental shift in how production quality will be defined across budget tiers

The rapid advancement of AI tools in film production suggests a future where the traditional correlation between budget size and production quality becomes increasingly blurred. Netflix's investment in this area indicates a strategic view that sees AI as more than just a cost-cutting measure.

As AI-powered tools continue to mature, we can expect a significant leveling of the playing field between indie and studio productions. The ability to achieve high-end visual effects at a fraction of traditional costs means filmmakers may soon be evaluated primarily on their creative vision rather than their access to massive budgets. For production professionals, this signals the need to develop expertise in AI-assisted workflows while maintaining focus on the storytelling elements that technology cannot replace. The true winners will likely be those who master the balance between technical innovation and creative excellence.