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In this video tutorial, the host introduces the "Dolly Challenge," aimed at comparing the results of an AI model, Dolly, with a graphic designer's work. Dolly is an AI that generates images from text prompts; for instance, it can create a realistic image of a car with a shark fin from a descriptive text. The host's graphic designer, Tim, typically takes longer to create images based on provided text. In the challenge, Tim is given infinite time and resources, while Dolly is limited to 10 seconds to complete the same task. The video aims to evaluate and compare the outcomes generated by both Tim and Dolly.