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Brad Cranium demonstrates using an AI value converter to change data type of a bound value. He starts by creating a simple application with a person object containing first name, last name, age, and gender as male or female. The code binds two person objects, male and female, and initializes their values. The context is then set. Text blocks are bound to male and female objects, calling the tostring method in the person class to display first name, last name, and age in a formatted manner.