YouTube Launches Live Test of 'Dream Screen' AI Background Generator
Briefly

You can type an idea into the tool to generate new images to include in your Shorts. For example, if you want the background of your next Short to be an enchanted rainbow flower forest, or a fancy hotel pool on a tropical island, you would type 'enchanted rainbow flower forest' or 'fancy hotel pool on a tropical island' into the tool and watch your imagination come to life.
YouTube says that you can access the feature by using the 'Green Screen' mode in the 'Create' element of the YouTube app (the + icon at the bottom of the screen). If you have the feature available, you'll be able to choose a new 'Create a video or an image' option, as opposed to only seeing a carousel of images in your Camera Roll. You'll then be able to type in a prompt for your video background.
Read at Social Media Today
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