The key section:
> Rene Ritchie, YouTube’s creator liaison, acknowledged in a post on X that the company was running “a small experiment on select Shorts, using traditional machine learning to clarify, reduce noise and improve overall video clarity—similar to what modern smartphones do when shooting video.”
So the "AI edits" are just a compression algorithm that is not that great.
It looks like quality cleanup, but I can’t imagine many creators aren’t using decent camera tech and editing software for shorts.