Storytelling represents one of the most effective techniques for communication, education, and knowledge transfer across diverse domains. However, traditional text-based storytelling methods often fail to maintain engagement among modern learners who increasingly prefer visually rich multimedia experiences. Creating animated storytelling videos manually requires expertise in scripting, illustration, animation design, narration recording, and editing tools. This paper presents STORYTALES – AI Tells the Story, an automated Generative Artificial Intelligence framework that converts textual narratives into animated storytelling videos with synchronized narration and scene-wise visualization. The system integrates Large Language Models for semantic scene segmentation, Stable Diffusion XL for visual synthesis, Stable Video Diffusion for animation generation, Coqui XTTS for narration synthesis, and FFmpeg for automated multimedia composition. Experimental evaluation confirms that the proposed architecture significantly reduces multimedia production complexity while improving accessibility for educators and content creators.