A Review of Netflix’s Adoption of Artificial Intelligence and Impact on Strategic Business Decision Making

Abstract

Many business organizations are quickly leveraging on powerful state-of-the-art Artificial Intelligence (AI) technologies and algorithms to learn from growing amounts of customer data in order to arrive at better business decisions that has the potential to improve services to customers, and by extension, their business operations. This paper x-rays how AI technologies are being utilized to enhance business decision-making processes and strategies. The global streaming giant Netflix was purposively selected for this analysis due to its global recognition as a pioneer in AI-driven personalization, content optimization, and data-driven strategic decision-making. The company provides publicly documented evidence of its AI research and deployment, making it a suitable and information-rich case for examining the relationship between AI technologies and business strategy. This review paper identified some specific AI technologies strategically adopted by Netflix which are providing enhancements in some business areas such as personalized user experiences, recommendation systems, optimized content delivery, streaming quality and optimization, etc. Some of these AI technologies include machine learning, computer vision, natural language processing, and predictive analytics. This paper equally emphasizes the growing ethical concerns in the utilization of AI technologies, especially in modern business operations and decision-making strategies. Some of the challenges reviewed with respect to Netflix AI-based operations include consideration for data privacy, algorithmic bias, and possible job displacement. The submission of this article demonstrate that the integration of AI has significantly improved Netflix’s business decision making, positioning it as a leader in the use of AI for business optimization.