Wallpapers AI is a tool that allows users to create unique AI-generated wallpapers for their phones or computers. It offers both phone and PC wallpaper creation options, and users can choose from a variety of pre-existing designs or create their own. The tool uses a fork of ImaginAIry to power its AI capabilities, and the project is developed with Django for the website. Users can choose between a PRO or PRO for Teams plan, which offer benefits such as no conversion limits, unlimited image creation, and commercial usage licenses.