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I spent all night glued to my Netflix (NFLX) home screen, sitting down to watch something and scrolling through hundreds of thumbnails, only to end up watching nothing.
If this sounds familiar, then Netflix has heard you. The company that turned endless scrolling into a national habit now says it can solve the very problem it created.
Netflix turns to generative AI to solve choice paralysis
Speaking at the Bloomberg Tech Conference in San Francisco on Wednesday, Elizabeth Stone, Netflix’s chief product and technology officer, said the company is using generative artificial intelligence to help users navigate its massive catalog.
- Stone explained that consumer frustration is growing. There are so many pieces to look at, there’s no easy way to know what’s right for the moment.
- To tackle this problem, Netflix is already using a combination of AI and natural language processing to suggest titles based on a viewer’s mood.
- Netflix is also testing voice search tools to make the experience more personal and interactive.
- Recommendations are products because most of what people watch is based on what they see on Netflix, not what they search for.
- That makes the “what to watch” screen the most valuable asset the company owns.
Of course, the overload that Stone wants AI to fix is partly the result of Netflix’s own strategy of commissioning a ton of programming. The problem and the cure come from the same place.
Netflix continues to grow at a steady pace
Netflix had over 325 million paying households at the end of 2025.
Co-CEO Greg Peters told analysts that although viewership is now approaching 1 billion, the company still accounts for only about 5% of the world’s TV viewing time. In other words, there’s still a chance to get a huge amount of watch time, and the easiest way to get it is by helping people press play faster.
Peters said Netflix sees recommendations as a “power multiplier” for its massive content budget, and new AI models are already driving engagement.
Netflix is also working hard to allay fears that AI will replace humans. Larry Tanz, the company’s vice president of content for Europe, the Middle East and Africa, said at an industry event this week that AI is “an evolution of the tools we already know, not a replacement for human creativity.”
Tanz said the new tool needs to pass one test. It’s about helping creators create better stories and helping viewers discover them. He added that Netflix values copyright and fair remuneration and is building consent for the use of digital replicas of actors.
Co-CEO Ted Sarandos echoed this point during an earnings call, saying generative AI “makes content better.” The company recently acquired InterPositive, an AI company built specifically for filmmakers, to speed up that work.
For the roughly 325 million households making monthly payments, the payoff could be simple. Scroll less and see more. And some of those lost nights may come back.
What is NFLX’s stock price target?
Analysts tracking Netflix stock predict revenue to increase from $45.18 billion in 2025 to $80 billion in 2030. Adjusted earnings per share are expected to expand from $2.53 to $6.16 in the period.
If NFLX stock’s forward earnings multiple was set at 24.5 times, similar to its current multiple, it could rise 85% from current levels within the next four years.
Of the 49 analysts covering Netflix stock, 31 recommend a “strong buy,” five recommend a “moderate buy,” and 13 recommend a “hold.” NFLX’s average price target is $116, above the current price of $82.
On the date of publication, Aditya Raghunath did not have any positions (directly or indirectly) in any securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please see the Barchart Disclosure Policy here.
