This reminded me of a weird idea that I had several years ago (which is kind of opposite of this):

What if there was a format that doesn't encode pixels but generates a "description" of the images using AI, of simple shapes to higher-level objects, and saves that in its own format, with a "decoder" that takes this input description format and constructs an image similar to the original, at least to some extent.

Of course this would have many drawbacks like encoding micro details and expressions of people, but still, I'd love to see how far the idea can go.