Netflix has figured out a way to make ads even worse using AI

Netflix will embrace AI-generated ads, whether we like it or not. The streaming service will roll out AI-generated ads in 2026 that will play in the middle of a show or whenever users hit pause for its ad-supported plans. During Netflix's Upfront event for its advertisers, Amy Reinhard, the company’s president of advertising, showed off the upcoming feature for interactive midroll and pause ads that use generative AI for custom content.

We've come a long way since Netflix's origin story of mailing out DVDs starting in 1997 and transitioning to an ad-free streaming service. Now more than ever, it feels like Harvey Dent's famous quote from The Dark Knight about living long enough to become the villain rings true for Netflix. The streaming service's longevity in the industry could be attributed to making compromises, like including ads, that take away from its initial glory. In a poetic turn of events, The Dark Knight trilogy was added to Netflix's library on April 1.

This won't be the first time Netflix dabbled with AI. Last month, Netflix offered regional users a new search feature that uses OpenAI to find something to watch. Looking beyond AI-generated ads in 2026, it's not likely that the company will slow down on finding new ways to generate revenue.

"So if you take away anything from today, I hope it’s this: the foundation of our ads business is in place," Reinhard said during the Netflix event. "And going forward, the pace of progress is going to be even faster."

The golden age of binge-watching an entire season of a Netflix show without ads could be a long-forgotten memory. Next year, don't be surprised if Netflix tempts you with a Baconator while you watch people succumb to the deadly consequences of Squid Games. If this eventual change has you rethinking your Netflix subscription, you can always cancel it or begrudgingly upgrade it to the Standard or Premium plans to avoid ads. Don't forget, Netflix has been steadily increasing subscription costs for its ad-free plans, which could push more users towards the standard plan with ads as the most accessible option.

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