How Netflix Saves 1 Billion A Year Using AI - ValueWalk

Netflix does not usually jump to the top of the list when one thinks of leaders in artificial intelligence, but Netflix's VP of Product Innovation, Carlos Uribe-Gomez, and Chief Product Officer Neil Hunt published a paper informing investors that some of its algorithms help them save 1 billion each year. In the paper, the two executives detailed how the company's recommendation engine impacts its churn rate. The video streaming giant does not report its churn rate, but the paper mentions that the Netflix's retention rates "are already high enough that it takes a very meaningful improvement to make a retention difference of even 0.1%." This year, the streaming giant plans to spend 6 billion on content. With such a big investment, it could get all sorts of TV series and movies, but if it just presents the most popular selections to everyone, many titles would remain unseen.