Streaming giant Netflix has voiced apprehensions about the potential adverse effects of generative artificial intelligence (AI) on its operations and competitive position in its annual report submitted to the US Securities and Exchange Commission (SEC). 

The company expressed the view that the rapidly evolving landscape of technological developments, including the growth of generative AI, could grant competitors a significant advantage, thereby affecting Netflix’s ability to compete effectively.

The report highlighted the uncertainty surrounding intellectual property protection for AI-generated material, emphasising the risk of increased exposure to legal claims. Netflix is wary that the adoption of new and emerging technologies, particularly in the realm of AI, may lead to challenges related to copyright and intellectual property, raising concerns about ownership and legal complexities in the evolving content creation landscape.

Generative AI’s impact on content creation has been observed in various forms, from suggesting storylines and character arcs to the creation of entire scripts and videos. The 2022 film ‘Everything Everywhere All at Once’ is cited as an example where generative AI played a role in the creative process. The report also noted the availability of AI tools capable of generating videos and providing data-driven predictions about viewer responses to unconventional storylines.