You could just send a lot of bitmap files. Or, you could save bandwidth and zip them before send.
Or you could integrate some image-specific compression into the file format, as in motion-jpeg. And in mpeg2/h264/h265 you supercharge this with temporal compression, not just adjacent pixels, not just blocks within the frame, but also pixels and blocks from adjacent frames are used to predict each pixel.
And now think about not sending video, just a single initial jpeg, some face shape data, and now a continuous stream of position data of a dozen or so points on your face and the facial movements are reconstructed. (Nvidia research project from last year)
And now think about no longer sending images at all, just coordinates for points in latent space (aka very abstract image descriptions) and a super-fast diffusion model "generates" the right frames on the fly.
Where does "compression" end, where does "AI" start? Ultimately, the marketing people decide.
Don't get hung up on the term "AI". "AI" is a bullshit hype buzzword. Calling it such serves no scientific-practical purpose, it is solely meant to impress venture capital.