The increasing demand for real-time analysis in video streaming has driven significant advancements in object detection and motion prediction. This paper presents SkelAI, an innovative application that combines YOLOv8, OpenCV, OpenAI API, and our own innovative algorithms to achieve real-time object detection and medial axis skeletonization tailored explicitly for live video streaming environments. In addition, SkelAI integrates AI-generated image capabilities through the DALL-E 3 model, enabling the extraction of skeletons from synthetic content that simulates streaming scenarios. The application supports exporting skeleton data in PyTorch-compatible formats, facilitating the training of sequence predicting deep learning models. Comprehensive evaluations demonstrate SkelAI’s enhanced accuracy, efficiency, and versatility compared to existing tools, underscoring its potential applications in digital animation, biomechanical research and robotics, human-computer interaction, and video compression within streaming platforms.