Netflix Co-CEO on AI in Content
Netflix Co-CEO Greg Peters says people misunderstand how AI will influence content creation, framing it as an augmentation tool rather than a replacement for human creativity. In a recent interview, he emphasized AI's role in enhancing, not supplanting, the creative process while also announcing new offices in Mexico.
Greg Peters' tech-centric viewpoint is rooted in his career path at Netflix, having served as Chief Product Officer and COO before becoming co-CEO in January 2023. His focus has consistently been on leveraging technology, from driving consumer electronics partnerships in his early days to now steering the company's strategy on AI, gaming, and advertising. Netflix's use of AI already extends deep into production workflows. Co-CEO Ted Sarandos noted that using AI for a VFX sequence on the series *El Eternauta* was 10 times faster and significantly cheaper than traditional methods. The company also utilizes AI to optimize shooting locations and has tested Runway AI's video generation tools. To govern this expansion, Netflix has established formal guidelines for the responsible use of generative AI in content production. Production partners require written approval for any AI-generated content that appears in the final cut, a rule designed to manage legal rights, copyright issues, and audience trust. This careful executive messaging follows public backlash over previous AI use. In late 2024, the company was criticized for using AI to extend a promotional poster for the animated series "Arcane," prompting a swift removal and a public statement from the show's brand lead about a "strict stance of no AI". The company also faced criticism for using AI to generate backgrounds for the 2023 animated short *Dog and Boy*, citing a labor shortage. The push for AI-driven efficiency aligns with major capital allocation decisions. After abandoning a bid for Warner Bros. Discovery, Netflix is reallocating funds to a record $20 billion content budget for 2026 and an expanded share repurchase program, prioritizing organic growth over massive acquisitions. The AI strategy is one part of a broader global expansion. Peters' interview coincided with the opening of a new 8,500-square-meter Latin American headquarters in Mexico City, a creative hub for a local team of nearly 400 employees that is expected to grow by 15% in 2026.
