Netflix Considers AI Generatively A Competitive Risk Factor

Netflix releases the annual 10-K report. (Doc. unsplash)

JAKARTA Generative Artificial Intelligence (AI) is indeed being widely used, but its increase carries considerable competitive risks and interference. This is how Netflix feels.

In the 10-K annual report submitted to the Securities and Exchange Commission (SEC), citing from Variety, Netflix puts AIs generally in the competitive risk factor section. According to the video streaming platform, generative AIs could harm the outcome of their operations.

"If our competitors benefit from using this technology, our ability to compete effectively and the results of our operations can be badly affected," Netflix wrote in a report they submitted on Friday, January 26.

In addition to disturbing from a business perspective, the advantage of using AI material cannot be ascertained. The reason is, this increasingly developed technology is closely related to intellectual property and copyright.

In addition, the use or application of new and new technologies can increase our exposure to intellectual property claims, and the availability of copyright and other intellectual property protection for AI-generated materials remains uncertain.

Although the risk from this generative AI is very small, Netflix needs to mention this factor in their report. Whatever minor obstacles the company may face, Netflix should convey to investors.

Prior to this report, Netflix was criticized by Screen Actors Guild-American Federation of Television and Radio Artists/Writers Guild of America (SAG-AFTRA/WGA) for using AI for film production and television shows.

The two unions said they were worried about their work being threatened so they staged a joint strike for nearly 150 days. The strike ended after SAG-AFTRA reached an agreement with Netflix to limit the use of AI.