Netflix Inc. (NASDAQ:NFLX) has begun testing an artificial intelligence–powered search engine that enables subscribers to find movies and TV shows based on their emotions, preferences, or specific situations.

What Happened: The feature, powered by OpenAI technology, is currently available to select users in Australia and New Zealand using iOS devices. Netflix says the test will expand to additional markets, including the U.S., in the coming weeks, reported Bloomberg.

The streaming giant has long used machine learning and AI to power its recommendation algorithm, but this new tool marks a significant expansion in user-facing AI features. 

See Also: Netflix To Launch First MMO Video Game: Is It The Streaming Company’s Biggest Gaming Bet Yet?

Unlike the current search tool, which relies on basic inputs like actor names or genres, the 

Subscribers must opt in to test the new tool, a departure from Netflix's usual practice of quietly rolling out new features, the report noted.

Why It Matters: Netflix’s viewership jumped by almost 8% in the first quarter of 2025, reflecting solid gains in both subscriber count and revenue.

Although the stock trades at a premium, analysts believe the current consensus forecasts are modest, justifying a $1,000 price target based on a 33x multiple of projected 2026 earnings.

Last year, Netflix co-CEO Ted Sarandos said that AI is unlikely to take over the creative roles of writers, actors, and directors within the entertainment industry. 

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“I don't believe that an AI program is going to write a better screenplay than a great writer, or is going to replace a great performance, or that we won't be able to tell the difference,” he stated.

The streaming company has previously drawn criticism after posting a machine learning product manager position with a striking annual salary range of $300,000 to $900,000.

Price Action: So far this year, Netflix shares are up 3.56%, while they’ve surged 47.44% over the past 12 months, according to Benzinga Pro data.

Benzinga Edge's Stock Rankings award Netflix a strong growth score of 69.69%. Want to see how it compares to other stocks? Click here for the full breakdown.

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