Netflix has emphasized the potential risks associated with generative artificial intelligence (AI) technologies, claiming they might significantly hamper the streaming giant’s operations and competitiveness. The cautionary statements have been published in Netflix’s annual report to the US Securities and Exchange Commission (SEC), throwing light on the company’s concerns about the changing landscape of technological advancements.
The streaming service, which has been a pioneer in the entertainment industry, emphasized generative AI’s rapid evolution and potential impact on content creation and distribution. Netflix warned that if competitors gain an advantage by using such technologies, the company’s ability to effectively compete and overall operational results may suffer.
One of the report’s primary concerns that was highlighted in the report is the unclear intellectual property protection for AI-generated material. The use of generative AI creates a complex legal landscape. This recognition of Netflix about the use of AI emphasizes the importance of establishing a broad regulatory structure to address the ownership and protection of AI-generated content.
While the technology is still in its early stages, generative AI has demonstrated impressive content-creation capabilities. Tools like ChatGPT can suggest intricate storylines, and character arcs, and even draft basic scripts, pushing the limits of what AI can do in the entertainment industry. Notably, generative AI was used in the production of the 2022 Oscar-winning film ‘Everything Everywhere All at Once,’ demonstrating its utility in mainstream films.
Beyond scripting assistance, generative AI has expanded into video creation, signaling an important change in how content is created. AI systems can generate videos autonomously, raising concerns about the potential impact on traditional filmmaking processes and the role of human creators in an increasingly computational landscape.
Netflix’s concerns follow along broader industry discussions, such as the Writers Guild of America (WGA) which went on strike in May of last year. The WGA’s demands for regulation of content created with artificial intelligence or similar technologies highlighted the industry’s widespread concern about the potential consequences of unchecked AI especially in the creative industry.
As generative AI continues to advance, the industry faces a critical juncture where innovation must be balanced. The cautionary stance adopted by Netflix signals a recognition of the potential of generative AI and its implications. Navigating this landscape will need collaborative efforts of both industry stakeholders and content creators to ensure a future where innovation and creative expression coexist.