The video explains how AI has transformed the developer experience, particularly in integrating AI with backend systems. It provides a step-by-step guide on setting up a new project using Nexus and integrating AI to control a backend dashboard. The speaker demonstrates creating a basic application, setting up a dashboard, and using Copilot Kit to automate backend actions. The process involves using ChatGPT for generating code snippets and integrating them into the project. The speaker also shows how to use Copilot Kit to update content dynamically in a database using backend actions. The tutorial emphasizes the practical application of AI in enhancing backend functionalities and offers insights into using Copilot Kit for self-hosted and cloud-based solutions.