The video discusses the advancements in computer-generated (CG) techniques used in Shrek 2 by DreamWorks. It highlights the development of realistic human characters, new hair systems, and environmental effects like rain and clouds. The animation team introduced innovative lighting techniques, such as subsurface scattering and bounce shaders, to enhance realism. These advancements set new standards in animation, building on the foundation laid by the first Shrek film.

Describe the significance of the bounce shader technique in the animation of Shrek 2.

What were some of the aspects of animation that were still being developed during the first Shrek?