Can the AI create or edit images?

Yes, in two places

In chat

• Describe the picture you want: "a watercolour of a lighthouse at sunset" or "a logo for a bakery called Morning Loaf"
• Attach a picture (PNG, JPEG or WebP) and say what to change: "remove the background", "make it look like winter"
• Attach several pictures to combine them or to show the style you want
• Ask for square, landscape or portrait
• Finished images appear in the chat and are saved in the chat's Generations folder in Files

In Imagine Studio

• Generate an image from a description, or open one from your device or from Files
• Let the AI change the whole image or only the area you select
• Edit by hand with layers, adjustments and effects
• Pick high quality for more detail
• Download the result as PNG, WebP or JPG

Cost: an image costs 5 credits, or 10 in high quality. In chat the AI asks before spending credits, and you choose Allow once, Allow in this chat, Always allow or Don't allow. Change that choice under Settings → General → AI images in chat