“The embrace of artificial intelligence (AI) from Indian creators has been much more aggressive and fast than anywhere in the world. And I think it’s because we believe that AI is a creator tool,” Netflix co-CEO Ted Sarandos said at The Indian Express’ Express Adda, adding that Indian storytellers see AI as a way to bring ambitious projects to the screen that might otherwise not get made.Sarandos, who was in India to mark Netflix’s 10 years in the country, spoke at length about how AI is reshaping filmmaking, why it should help creators tell better stories instead of simply cutting costs, and what lies ahead for the future of streaming.Speaking to Anant Goenka, Executive Director of The Indian Express Group, Sarandos traced the company’s origins as an internet-first bet, defended AI as a creative tool rather than a cost-cutting shortcut, and expressed scepticism about both interactive storytelling and fully AI-generated short-form content.During the conversation, Sarandos recalled that Netflix’s vision came long before the technology was ready. He said that when he met co-founder Reed Hastings in 1999, Hastings already believed that “all entertainment is going to come into the home on the internet.” At the time, however, internet speeds were too slow and streaming did not exist, so the company’s early discussions focused on downloading movies instead.Also Read | OpenAI’s first AI device may be a $300 doughnut-shaped smart speaker: ReportHe added that Netflix’s real early advantage was not distribution or production, both of which it lacked, but solving what he called a marketing problem. “Helping people find something to watch in a world of almost infinite choices.”When asked what sets Netflix apart from broadcasters and other streamers, Sarandos said the platform’s biggest strength has not changed since its DVD-by-mail business. “Our differentiation is personalisation,” he said, adding that it works because the platform offers a vast library of content.AI as a creator tool, not a cost-saving shortcutThe most detailed part of the conversation centred on use of AI in production. Sarandos said Indian filmmakers have taken to AI tools faster than creators anywhere else he’s seen. He said Netflix currently has roughly 300 productions that have used some form of AI tool, including for pre-visualisation which lets directors plan complicated or dangerous shots more safely and extensively in post-production and visual effects.Story continues below this adSarandos was clear, though, that AI’s value has to be creative, not just financial. “if it’s a cost-saver, it’s fine, but it is not going to change anything. In fact, it may be harmful if it doesn’t make a better product.”“If it gives the director the opportunity to tell a better story than he could have otherwise, even better if it’s a little bit faster, a little bit cheaper, but at the end of the day, if it’s not better, those things don’t matter.”Sarandos also highlighted InterPositive, the AI-powered filmmaking startup co-founded by actor and filmmaker Ben Affleck that Netflix reportedly acquired earlier this month for $587 million. The company’s technology is designed to assist with post-production tasks such as fixing lighting, removing stunt wires, replacing backgrounds and generating missing shots using only footage from a production. Referring to the tool, Sarandos said it helps filmmakers create AI-assisted pickup shots and reshoots using only footage from the film itself and is “kind of trained in film school, not necessarily trained on everything ever made.” He noted that reshoots can account for as much as 20 per cent of a production’s budget and described the technology as a safeguard for keeping projects on schedule rather than a replacement for creative work.Also Read | Meet Discovery Loop, AI startup launched by Google DeepMind’s top researchersWhen asked about the risk AI-generation tools pose to original IP, Sarandos struck a more cautious note. Citing a figure he said he had not independently verified, he noted that a major Chinese micro-drama company that switched to fully AI-generated shows reportedly saw engagement drop by 70 per cent. “Audiences are looking to either escape or connect when they engage in content… and there’s something about the lack of humanity there that people are rejecting right now for this kind of storytelling.” He added the caveat that this may not hold forever, but “it is true for now.”Story continues below this adWhen another attendee asked what his advice would be to a CEO reimagining their business around AI, Sarandos warned against adopting the technology simply because that’s where all the investment’s going. He said companies need a clear strategic use case. “What is the use case for AI that advances your business initiative… I think it’s very important that people have a strategy of what they’re going to use this tool for and how it will improve the business.”On storytelling and micro-dramasOn interactive, choose-your-own-adventure content which is a format Netflix has experimented with before, Sarandos said the appetite for it has been consistently overestimated. “People underestimate the deep human desire to be told a story.” He said a more promising use of technology might be building explorable digital worlds around existing IP to gather early audience feedback, rather than branching narratives.Talking about micro-dramas, the short, vertical, mobile-first format gaining traction in China and India, he termed the trend “fascinating” but said it remains difficult to monetise, and sees it as complementary to and not competitive with big-screen viewing.