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In the video, the creator uses AI to remove watermarks from images, starting with a desire for a specific image from Shutterstock. They acknowledge the process may be illegal or unethical and emphasize the need for Photoshop. After spending five hours removing watermarks manually, they turn to AI, specifically machine learning and deep learning, to automate the process. They explain the need for a lot of data, a large neural network, and CUDA cores for this task. The ideal scenario involves having both the watermarked and watermark-free versions of an image as input data.