In the limit case, compression and AI are identical. Once you get to an AI that has full comprehension of what humans perceive to be reality, you can just give

In the limit case, compression and AI are identical. Once you get to an AI that has full comprehension of what humans perceive to be reality, you can just give them a rough outline of a story, add some information on casting, writers, and Spielberg's mood during production, and they'll fill in the (rather large) blanks. That's a bit exaggerated, but I remember reading about one such algorithm a few days ago (by Netflix, maybe?). It was image compression that had internal representations such as "there is an oak tree on the left". It would then run the "decompression", find the differences to the original, and add further hints where neccessary.