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In this video tutorial, the creator demonstrates how to use AI to remove watermarks from images. They explain that the process involves using machine learning, specifically deep learning with neural networks. The key components needed for this task are a large amount of data, a sizable neural network, and CUDA cores. The tutorial outlines the steps to remove watermarks from images using Photoshop and AI techniques. The creator acknowledges the ethical concerns of this project and the potential legal issues involved.