Netflix has deployed generative AI in about 300 productions, primarily in post-production. The company carefully positions the technology not as a replacement for writers or directors, but as a practical tool to reduce costs and enable shots that were previously cost-prohibitive, thus avoiding conflict with creative unions while still scaling its use.

The immediate impact of generative AI in filmmaking isn't replacing final production but revolutionizing pre-production. Tools like ComfyUI enable rapid visualization of complex scenes, allowing creative teams to iterate and make on-set decisions in minutes rather than weeks.

AI is enabling films to be shot entirely on gray-screen soundstages with AI-generated backgrounds and lighting. This can slash a blockbuster's budget from over $200M to $70M, making it financially viable to produce more movies and take bigger creative risks.

Contrary to hype, Hollywood's current AI adoption is focused on back-end processes where labor unions have fewer protections, like automating animation and storyboarding to cut costs. Studios are treading cautiously and are not greenlighting AI-written scripts or replacing human actors, which are protected by guild agreements.

Contrary to fears of replacement, using AI for film backgrounds can enhance human creativity. By shooting on a stripped-down gray screen set, actors are freed from external distractions, allowing them to concentrate entirely on their performance.

Netflix's acquisition of Interpositive, an AI startup, focuses on automating post-production tasks like lighting and reframing, not generating new scenes. This massive deal proves the most valuable and accepted use of AI in entertainment is as a high-end efficiency and cost-cutting tool that keeps creative control with humans.

Long before the current generative AI boom, machine learning was integral to high-end VFX, such as creating the character Thanos in Marvel's 2018 film 'Infinity War'. This historical use without public outcry suggests audiences accept AI as a tool for enhancing CGI, differentiating it from concerns about AI replacing core creative roles.

The most tangible fear of AI in Hollywood isn't replacing A-list actors, who have leverage for consent and compensation. The immediate threat is to production jobs—grips, makeup—as AI enables digital reshoots and effects, reducing the need for on-set labor.

Initially resistant, Hollywood now widely uses AI tools like Magnific. Creatives like Gal Gadot have realized AI can cut film production costs by two-thirds, enabling more content creation by focusing actors on performance while AI handles complex environments, ultimately servicing more audiences.