I'd be interested to see lossy text compression. That would also give much more scope for AI methods. It turned out that recently Stable Diffusion gives excellent compression https://pub.towardsai.net/stable-diffusion-based-image-compr... Funny thing is, on a per pixel basis, Stable Diffusion and jpeg are just as good. Stable diffusion looks much better, though. The reason is that when Stable diffusion lacks the info…
A lossy text compressor can be converted into a lossless compressor quite easily by encoding the remaining differences between the lossy reproduction and the original text. The more accurate your lossy compressor is, the less additional information you need to encode the differences. You can get even better results if your lossy compressor is probabilistic, and can compute approximate probabilities for different text…
In my armchair speculation for the case of severe lossy text compression, the delta/diff could easily get there, making a strong compression algo based on something like GPT-3 not really practical for doing lossless.