AMNA NAWAZ: As artificial intelligence continues to reshape arts and entertainment, it's also creating a new type of producer and content provider.

Special correspondent Mike Cerre reports on a Silicon Valley start-up launched by a YouTube co-founder that could change video storytelling as dramatically as he changed video distribution.

It's part of our arts and culture series, Canvas.

AI ACTOR: The secret to a successful gathering is excellent food and at least one person upon the verge of emotional ruin.

MIKE CERRE: No real actors, no real locations or sets, and certainly no real horses, because no major production company would commit the millions it would cost to produce it.

GILLIAN, Writer and AI Producer, EyeTell: Well, I'm not stranger to coming up with film ideas and having like a really big backlog of ideas that I want to see on screen.

MIKE CERRE: Gillian, a screenwriter with film production experience, was able to produce this period drama episode on her own in a week with only basic computer skills and a shared WeWork office space of the Silicon Valley start-up EyeTell.

CHAD HURLEY, Founder and CEO, EyeTell: With EyeTell, well, this is something I have been thinking about since I have left YouTube, where I felt like there's a lot of creators, but there's even more people that want to create, but don't know how.

And I wanted to give them the structure to do that.

MIKE CERRE: Just as Chad Hurley, the co-founder of YouTube changed video distribution, he now believes AI can democratize video creation and viewing as well.

CHAD HURLEY: It's going to enable more people.

It's going to be a renaissance of content creation and storytelling at scale that never existed before.

MIKE CERRE: His EyeTell developer team mix of technologists, veteran animators, and storytellers has created software that integrates a variety of AI video production tools, making them more accessible for nonprofessionals to produce videos much as only major production companies can.

ANDREW GORDON, Chief Storyteller, EyeTell: In a studio, there are gatekeepers, and you pitch a project and they say yay or nay.

But now if you have this so-called power of full technology, you have got a whole studio and you're able to do your stories.

MIKE CERRE: EyeTell's chief storyteller, Andrew Gordon, worked with the major studios like Warner Bros.

and Pixar as a lead animator on Academy Award-winning productions.

He's not surprised by the blowback the new AI production tools are having within the creative community, much like previous filmmaking transitions to computer graphic special effects with "Jurassic Park" and from hand drawn 2-D animation to 3-D animation with Pixar's original "Toy Story."

ANDREW GORDON: People thought 3-D looks terrible.

They thought it wasn't artistic enough.

And then obviously Pixar and some of these other companies, they made stories that were really moving, and they pushed the technology.

And I think that that's really what is sort of happening now.

MIKE CERRE: What does this technology allow for the average person to do?

ANDREW GORDON: We took your voice and we threw it into EyeTell.

This area here is sort of like the prompt engine where you're talking to it, and then I give it to it, I give it direction, and I have it ask your question in your voice, right?

MIKE CERRE: And you worked with Pixar.

But had I not given you the voice and that question, is the system set up that it could create the question editorially?

ANDREW GORDON: Yes.

MIKE CERRE: I mean, can it replace me as the storyteller?

ANDREW GORDON: Well, it can, but it gives it a little bit of a -- quote, unquote -- "artificial feel,' and that's where you have to push it.

MIKE CERRE: What is the future of innovation?

This is pushing my interview to live motion based on a single photo I provided.

As for my and others' concerns over AI eliminating jobs and using voices, images, or intellectual property without permission, yet alone compensation, Chad Hurley believes AI also makes it easier to identify and compensate any original content sources used.

CHAD HURLEY: Again, not too dissimilar to what we did at YouTube, which we built a content I.D.

system which identified what content was coming into the system, and not just build a system that removes it or restricts it, but empowers the I.P.

holders and content creators to do something with that, to embrace their biggest fans, to monetize it.

MIKE CERRE: From turning family archives into a story, recreating historical events, making a dramatic movie on your own, or just goofing around, the AI software is intended to empower all kinds of storytellers to create and produce original content on their own.

CHAD HURLEY: So, without further ado, I'd like to present EyeTell TV.

MIKE CERRE: Last month, where else but on YouTube, Chad Hurley launched EyeTell TV, his latest video platform for not only viewing this new genre of AI-generated videos, but where viewers can also become part of the storytelling process by suggesting changes to the story, which can be generated nearly in real time.

So one of the wishes is a mailman delivers a pizza or a panda eats the food or a duck flies into the store.

CHAD HURLEY: I'm going to provide an opportunity where people can lean in and participate and affect the narrative, the story, and be part of that process.

MIKE CERRE: Now, are the guardrails a place that you could prevent someone from putting something violent or salacious or something very distasteful up there?

CHAD HURLEY: Yes, of course.

I mean, the first line of defense is the models themselves.

We're also building our own system guardrails in terms of when we receive a request from a user.

We're able to immediately kind of identify things and restrict things before they even hit the screen.

AI ACTOR: On that note, where are the Ashcombe (ph) ladies?

MIKE CERRE: Gillian's not sure who will ever see or pay her for her "Ashcombe House' episodes, inspired by her adoration of the 2005 "Pride and Prejudice" film produced by a major studio.

GILLIAN: I think there's room for this alongside traditional filmmaking.

It's a really cool way to let people develop original ideas, because our industry has kind of fallen into these patterns of a certain set of people who are the only voices who are heard.

MIKE CERRE: Even if now the voices and images are created or reversioned by AI.

For the "PBS News Hour," Mike Cerre in San Mateo, California.