Netflix has confirmed that it is using artificial intelligence to improve subtitle localization, according to its Fourth Quarter 2025 letter to shareholders.
In the letter, Netflix said it is continuing to expand its use of AI across multiple areas of its business to enhance the viewing experience and support internal teams. As part of its content production and promotion efforts, the company stated that AI is being used to improve subtitle localization, making it easier for Netflix titles to reach more viewers worldwide.
Netflix did not disclose specific details about how the AI-assisted subtitle localization works, which titles use the AI subs, or whether the process involves human oversight, or how broadly they are currently being used across its catalog.
Beyond localization, Netflix said it began testing new AI tools in 2025 to help advertisers create custom ads based on Netflix’s intellectual property, with plans to expand these efforts in 2026.
Netflix further stated that it is implementing AI-driven tools for merchandising, aimed at improving how members are connected with titles that are most relevant to them.
Netflix’s announcement comes at a time when the use of AI in subtitles and dubbing has become a flashpoint across anime streamers. Over the past year, multiple platforms have faced sustained backlash from fans and professionals over declining subtitle and dub qualities.
Crunchyroll has repeatedly drawn criticism for its subtitle practices. Earlier in 2025, viewers discovered that subtitles for the Summer 2025 anime series Necronomico and the Cosmic Horror Show had been generated using ChatGPT.
Crunchyroll later clarified that a third-party vendor had employed the AI tool in violation of its contract. However, the explanation did little to quell dissatisfaction, as fans continued to report noticeable drops in subtitle quality across several Fall 2025 anime releases.
In addition to quality concerns, Crunchyroll has also faced allegations that it mandated its subtitling staff to use an Israeli-developed AI software.
Amazon also faced major backlash when the company released AI-generated English dubs for Banana Fish, Vinland Saga, No Game No Life and other anime titles.
The automated dubs were widely condemned by fans and voice actors alike for robotic delivery, poor timing, and dialogue that failed to align with on-screen subtitles. Amazon removed the AI-generated dubs shortly after the criticism escalated.
![[Exclusive] The Great Indian Anime Show: The Journey Behind India’s First Ever Anime Talk Show](https://animehunch.com/wp-content/uploads/2026/01/Analyst6.webp)
