About this episode
Elizabeth Stone is the Chief Product and Technology Officer (CPTO) at Netflix, where she oversees Engineering, Product, and Design. Since her first appearance on the podcast two years ago—which remained my second-most-popular episode for more than a year—she has expanded her role to lead product, in addition to engineering. Before Netflix, Elizabeth was VP of Science at Lyft, Chief Operating Officer at Nuna, an economist at Analysis Group, and a trader at Merrill Lynch. In our in-depth conversation, we discuss: 1. Why “systems thinking” is now the most important skill she looks for 2. How to manage the flood of AI-generated output without losing quality or signal 3. How Netflix thinks about AI fluency as a universal expectation rather than a level-specific skill 4. What “excellence as an operating system” means — Brought to you by: WorkOS —Make your app enterprise-ready, with SSO, SCIM, RBAC, and more: https://workos.com/lenny Mercury —Radically different banking, now with Command: https://mercury.com/command?utm_source=lennys&utm_medium=sponsored_newsletter&utm_campaign=26q3_brand_campaign — Episode transcript: https://www.lennysnewsletter.com/p/netflix-cpto-on-ai-and-the-future — Archive of all Lenny's Podcast transcripts: https://www.dropbox.com/scl/fo/yxi4s2w998p1gvtpu4193/AMdNPR8AOw0lMklwtnC0TrQ?rlkey=j06x0nipoti519e0xgm23zsn9&st=ahz0fj11&dl=0 — Where to find Elizabeth Stone: • LinkedIn: https://www.linkedin.com/in/elizabeth-stone-608a754 — Where to find Lenny: • Newsletter: https://www.lennysnewsletter.com • X: https://twitter.com/lennysan • LinkedIn: https://www.linkedin.com/in/lennyrachitsky/ — In this episode, we cover: (00:00) Introduction (02:25) AI and role confusion: the storming phase before the forming phase (07:36) How roles have changed in the past two and a half years (11:55) Will functions survive? The case for craft specialism (13:26) What Netflix is hiring more of—and less of (17:22) Why systems thinking is the rising skill across every function (20:20) Is the design process dead? (22:08) Skills trending down (28:33) AI fluency and Netflix’s career ladder overlay (31:00) AI use cases beyond coding (35:12) Netflix’s AI history (38:36) Excellence as an operating system (41:11) The pillars of the excellence OS (46:41) The keeper’s test—and why it’s mostly a positive conversation (50:21) Attracting top talent in the age of frontier AI labs (52:54) Junior talent, craft mastery, and the mentorship question (56:25) Where engineering goes in 5 to 10 years (59:45) The future of entertainment: beyond film and TV (1:02:18) AI in Hollywood: Netflix’s creator-enablement position (1:06:15) Lightning round and final thoughts — Referenced: • How Netflix builds a culture of excellence | Elizabeth Stone (CTO): https://www.lennysnewsletter.com/p/how-netflix-builds-a-culture-of-excellence • Brian Chesky’s new playbook: https://www.lennysnewsletter.com/p/brian-cheskys-contrarian-approach • The design process is dead. Here’s what’s replacing it. | Jenny Wen (head of design at Claude): https://www.lennysnewsletter.com/p/the-design-process-is-dead • Claude Code: https://www.anthropic.com/product/claude-code • Claude Cowork: https://www.anthropic.com/product/claude-cowork • Netflix’s “Keeper Test” and Why You Need It | Lorne Rubis: https://www.highlights.lornerubis.com/2015/08/the-netflix-keeper-test-and-the-courage-to-take-it • Innovation for Filmmaking, By Filmmakers: Why InterPositive Is Joining Netflix: https://about.netflix.com/en/news/why-interpositive-is-joining-netflix • InterPositive: https://weareinterpositive.com • Netflix Prize: https://en.wikipedia.org/wiki/Netflix_Prize • Quarterback on Netflix: https://www.netflix.com/title/81482895 • The Bill Simmons Podcast on Netflix: https://www.netflix.com/title/82186214 • Spencer Pratt on Instagram: https://www.instagram.com/spencerpratt • Salman Rushdie’s Substack: https://salmanrushdie.substack.com • Remarkably Bright Creatures on Netflix: https://www.netflix.com/title/81911351 • Eight Sleep: https://www.eightsleep.com • Tour de France: https://www.letour.fr/en — Recommended books: • Thinking in Systems : https://www.amazon.com/Thinking-Systems-Donella-H-Meadows/dp/1603580557 • Into Thin Air: A Personal Account of the Mt. Everest Disaster : https://www.amazon.com/Into-Thin-Air-Personal-Disaster/dp/0385494785 • Liar’s Poker : https://www.amazon.com/Liars-Poker-Norton-Paperback-Michael/dp/039333869X — Production and marketing by https://penname.co/ . For inquiries about sponsoring the podcast, email [email protected] . — Lenny may be an investor in the companies discussed. To hear more, visit www.lennysnewsletter.com
Listen to the original episode
Episode summary
It suddenly feels like anyone can do any job, from PMs pushing code to designers writing specs, and people are asking what their role is now. With that in mind, I’m excited to welcome back Elizabeth Stone, Netflix’s product and technology leader, whose last visit was a fan favorite—great to have you here again.
I’m happy to be back and, yes, quietly gunning for the top spot this time.
Are you seeing this role confusion inside Netflix as AI blurs the lines between functions?
When a disruptive tool arrives, it’s messy before it stabilizes, and we’re in that phase now. We shouldn’t pause AI; we should use it thoughtfully—prototype and explore, but keep guardrails on data, shipping, review, and quality, with clear human accountability.
Which roles have shifted the most over the last couple years?
Product, design, and data science can now push ideas further—prototyping, coding, and forming testable hypotheses—before engineering steps in. Still, we rely on experts for trustworthy data, crisp problem framing, and scalable, high‑quality systems.
Some teams are trying a single builder title; do you still believe in distinct specialties?
Absolutely—craft excellence still matters, and top engineering, data science, and creativity remain scarce even as people wield broader toolsets.
What are you hiring more of, and why does systems thinking loom so large?
We’re adding systems thinkers: more distributed systems and shared infrastructure folks, and designers who build coherent design systems so we don’t ship Franken‑experiences. Platforms and paved paths boost speed and also encode security, identity, data truth, and quality—essential as agents start doing real work alongside humans.
Some say the design process is dead in an AI world; do you agree?
Tools can speed exploration, but deep design thinking is still vital—Netflix wins when complexity disappears and the member experience feels effortless.
What skill is trending down?
Ultra‑narrow specialization is less central except in true niches; we value adaptable people who can stretch across the stack and rethink legacy tools.
How can someone build systems thinking without waiting years?
Zoom out one notch from your task and test your assumptions about the broader customer and business problem, then move. Think like your manager, build for colleagues, and leave stronger systems behind.
Did AI change your career ladders or performance expectations?
We added an AI fluency expectation across roles: explore, know when it helps or hurts, and show judgment. We interview for that mindset and let candidates use AI in coding because that’s the real job.
Beyond coding, where is AI moving the needle at Netflix?
It’s speeding up analysis and insight gathering across years of experiments and research, and it’s transforming content creation from pre‑visualization to post—think relighting, reframing, and smarter localization—plus scaled promotional assets.
You’ve been early on this—remember that famous recommendations challenge?
Personalization has long been core, and it only grows in importance as we expand into games, live, and podcasts; blending entertainment with technology is our home field.
Your culture sounds a lot like today’s top AI labs.
We run on excellence as the company’s operating system—high agency, clear accountability, bold bets, decisions pushed down, and a bias to learn fast rather than drown in process when things get tough.
It’s tempting to add process after a mistake.
We favor blameless retros and shared learning over checklists, because that builds a resilient, high‑talent team.
How is the keeper test used today?
It opens honest conversations both ways—often to celebrate impact and coach for even better, and sometimes to acknowledge a tough fit and act.
How do you win top talent amid an AI hiring frenzy?
We attract people who love building at the intersection of tech, product, and global entertainment; not everyone wants to work on frontier models, and that’s fine.
What about junior talent in an AI‑accelerated world?
We still hire interns and new grads; they bring native fluency and fresh instincts, and we mentor hard on craft and accountability because quality still belongs to the person shipping.
Where is engineering headed—will people still need to understand code?
You might write fewer lines, but you must understand how systems work to judge quality, fix issues, and steer agents; opaque agent‑written code is unsettling today, so we need better tests and fluency as change accelerates.
How will entertainment itself evolve on Netflix?
Entertainment is widening—film, TV, live, podcasts, and games—and we aim to stitch it into a seamless, personalized journey across devices and moments while making discovery far easier.
Where do creators and AI meet—and could fully AI shows win hearts?
We support creators across the spectrum, but humans remain the backbone of storytelling and performance; AI will amplify, not replace, that humanity.
Any final notes before a quick lightning round?
This is a thrilling time to build in entertainment—keep sight of the goal, which is delighting audiences, not just admiring the tech.
Lightning round: books, recent watch, product you love, and a motto you live by.
Into Thin Air and Liar’s Poker are my go‑tos; Remarkably Bright Creatures moved me; Eight Sleep keeps me sane; look for one good thing each day, and remember the last five percent often changes everything.
You mentioned a cycling adventure.
I’m riding parts of the final week of the Tour de France—no racing, but I plan to hold my own.
Where can people find you, and how can listeners help?
Check the Netflix Tech Blog, and please try our new things—live events, games, and Clips on mobile—and send feedback so we can make them great.
Thanks for coming back, Elizabeth. If you enjoyed this, subscribe and leave a review so others can find the show.