Question: Is there a service that uses AI to generate stories and illustrations for educational purposes?

DreamCanvas is an AI-powered storytelling tool that turns photos into characters and stories. It includes a layout creator for different illustration styles and an AI Imagery Creation feature to generate original imagery. It's good for creating personalized children's books or educational stories, in particular for those who don't have design or writing skills.

Another good option is We Are, an immersive learning platform that lets you create AI-powered, interactive stories and simulations. It supports scriptwriting with AI, automatic animation conversion and gamification. It's good for schools and content creators who want to create interactive learning experiences.

For illustrated children's stories, OnceUponABot is worth a look. It marries the GPT-3 and Stable Diffusion models to offer customizable illustrations and personalized storytelling. It's good for parents, teachers and language learners trying to improve reading skills and creative storytelling abilities.