YouTube Launches AI-Powered Video Generator for Shorts

YouTube has unveiled a major update that could revolutionize short-form video production. The new AI-powered feature, built on Google's Veo 2 neural network, enables users to generate full-fledged Shorts videos from text descriptions alone. These AI-generated clips can serve as either backgrounds or standalone content.
Previously, the Dream Screen tool allowed users to generate backgrounds and short videos from text prompts, but its capabilities have now expanded. Users can:
- Open the Shorts camera, navigate to the Dream Screen section, and tap "Create."
- Enter a concept for the video (e.g., "An astronaut dancing on the Moon in retro style").
- Customize the style, effects, duration, and even the cinematic quality of the footage.
The generated clip can be instantly published in Shorts with added music or text. According to the developers, Veo 2 enhances detail quality by analyzing motion physics, lighting effects, and even character emotions—making AI-generated videos nearly indistinguishable from real footage.
The feature is already available to creators in the U.S., Canada, Australia, and New Zealand, with a global rollout planned in the coming months. YouTube also emphasizes its commitment to ethical AI use: all AI-generated videos will be visibly labeled as "Created with AI" and embedded with an invisible SynthID watermark, which remains intact even after editing.
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