Image to Text & Summary with AI

Effortlessly convert Image to text in seconds and get image summary powered by NoteGPT.

Tried convert image to text and summarize it?

Use AI to convert text from images and support AI in understanding image content. AI Image Summarizer can analyze images without text. Come and try it out.

Learn PPT Faster with AI PPT Summary Generator - NoteGPT

How to Use Image Converter & Summarizer?

Use NoteGPT to convert and summarize image in three simple steps:

Step1: Upload Image or Paste Image URL - NoteGPT

Step1: Upload Image or Paste Image URL

Begin by uploading an image or pasting the image's URL.

Step2: Extract Image to Text with AI - NoteGPT

Step2: Extract Image to Text with AI

NoteGPT will extract text from the uploaded image or with image url.

Step3: AI Summary of Image Content - NoteGPT

Step3: AI Summary of Image Content

Utilize AI to summarize the content extracted from the image.

Take Action Now!

Start converting images to text and summarizing effortlessly with NoteGPT.

User Testimonials

"NoteGPT revolutionized my workflow, saving hours of manual text extraction and image summary of AI."

"As a student, NoteGPT helped me quickly summarize complex study materials for exams."

"Impressive accuracy and speed! NoteGPT is now an essential tool in my research arsenal."

Real-World Use Cases

Legal documentation.

Convert scanned documents, contracts, and agreements into searchable and editable text.

Academic Research

Easily extract text from scientific diagrams, charts, and illustrations for analysis and citation.

Marketing and Advertising

Analyze and summarize visual content, such as infographics and advertisements, for effective campaign planning.

FAQs - Your Questions Answered

What types of images can notegpt process, how accurate are the text conversions and summaries, can notegpt handle handwritten text, is there a limit on the number of images i can process, can i export the converted text and summaries, is my data secure with notegpt, get image summary now.

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Introducing

Genius images have more detail, more artistic quality, and follow your instructions in the prompt better than ever before!

AI Image Generator

This is an AI Image Generator. It creates an image from scratch from a text description.

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AI Image Generator

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Generation Overview

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  • Includes 500 AI Image generations, 1750 AI Chat Messages, 30 AI Video generations, 60 Genius Mode Messages and 60 Genius Mode Images per month. If you go over any of these limits, you will be charged an extra $5 for that group.
  • For example: if you go over 500 AI images, but stay within the limits for AI Chat and Genius Mode, you'll be charged $5 per additional 500 AI Image generations.
  • Includes 100 AI Image generations and 300 AI Chat Messages. If you go over any of these limits, you will have to pay as you go.
  • For example: if you go over 100 AI images, but stay within the limits for AI Chat, you'll have to reload on credits to generate more images. Choose from $5 - $1000. You'll only pay for what you use.

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  • AI Essay Writer

Free AI Essay Writer

To help you generate ideas, outline topics, and write the content for your next essay. Start your learning journey now.

  • Get inspired & creative with AI ✨
  • Win time back 🏆
  • 100% free & no sign-in.

Use this essay writer for...

Generating ideas & topics.

An essay writer can generate ideas for your next essay, especially if you know the direction but need clarification on the specific (sub)topics.

Outlining an essay

When you have a topic, it is time to break it down into subtopics and generate an outline so you can draft your essay.

Getting help with writing

To write an entire essay yourself takes time. Essay writers can help you get started or help with the writing. It can help you understand how to write an essay.

Learning more about a topic

An essay can be a great way to learn more about a topic while reading, writing, or researching it.

What is an AI Essay Writer?

Types of essays.

Academic essays are your stage to spotlight your brainpower, letting you dig deep into fascinating topics while showcasing your flair for clear, persuasive writing.

Professional

Professional essays are your career's secret weapon, allowing you to share expert insights and build credibility in your field, all while flexing your writing chops.

Journalism & Non-Fiction

Journalism essays give you the mic to spotlight important issues and hidden tales, serving as a playground for your investigative prowess and narrative flair.

Personal use

Personal essays are like selfies in words, capturing your unique experiences, thoughts, and feelings in a way that not only entertains but also connects with others.

How to create a good essay

Describe the topic of the essay.

This step is pretty straightforward. However, you can get very different results depending on your input. The more specific the topic, the deeper the content and the more unique the content.

Include more details

You can generate a more generic essay, but if you want to cover certain subtopics, details, names, locations, etc., you should add this to the details. You can also use a generated outline .

Learn, edit & copy

Essays are a great source of knowledge, so read through it, edit where needed, and apply the valuable parts to you and your audience.

Tips to create even better essays

  • Stand out - Generate more specific content by describing the topic and breaking it down with details or an outline.
  • Personalize - Include the most relevant subtopics to get the best-personalized results for your needs.
  • Nobody is perfect - Your essay won’t be perfect after 1 generation. Read, edit, and explore content, viewpoints, arguments, and more to improve your essay.

Can the AI Essay Writer write the entire essay for me?

What kind of essays can the ai essay writer help with, can the ai essay writer guarantee a high-quality essay, can i trust the sources and references provided by an ai essay writer, is it completely free, suggestions for you, outline generator.

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ai photo editing tools

AI Image Generator

Generate an image using Generative AI by describing what you want to see, all images are published publicly by default.

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Get inspiration, text to image prompts and trending image generations; just need to login first!

Free online ai image generator.

It's free to test out the AI Image generator and it makes creating your own images super easy. Just write a description of the image you'd like to generate and watch the text to image transformation happen in seconds.

So simple to get the perfect images or create stunning visuals with our AI image generator. Dream it, and use text to image online to visualize it. Easily create different AI images for products, characters, and portraits at your fingertips even if it doesn't exist yet.

Type your simple text description and our AI generator lets you create images in seconds. Powered by AI technology, our AI image creator makes it easy to bring imagination to life. The possibilities for creativity are endless!

AI Photo Generator

Generate Different Art Styles with the AI picture Generator

Experimentation is a big part of creation. Test out different modes for your AI-generated images Pixlr Text to Image, using our style options like Enhance, Anime, Digital-Art, Neon Punk, Cinematic.

Choose a specific style and aspect ratio to match the concept you’re going for. With our AI photo generator, easily turn text prompts into art that captures your thoughts and presents options you can place on your poster or storyboard.

Generate AI images in Different Art Styles

How to make AI-generated images

1. Tap the input at the top and describe the image you’d like to generate. The more detail you can provide, the better.

2. When using Text to Image, you can also choose an image style from our available options like Enhance, Anime, Digital-Art, Neon Punk, Cinematic etc. Then, click Generate image.’

3. Additional Image Generator options include Size/Aspect ratio and color, lighting and composition preferences for you generated photo

How to make AI-generated images

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Craft Essays Without Hours of Research

Generate comprehensive essays in any subject within minutes using AI

AI Essay Writer

Add details below to generate an essay

Trusted by 500,000+ marketers

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How to generate essays with AI

Create better essays faster, with the help of AI. Get the help you need to get ahead without having to put in extra time or effort.

Woman and AI content generator app preview

Add your topic

To get started, simply describe your topic or paste in your content. You can also add keywords to further guide our AI, or choose a tone for your content.

Generate Insightful Essays in Less Time

Our AI will create essays tailored based on your specific topic and keywords. No more hours of Googling and reading research papers.

Review & edit

Once you've generated your copy, our tool will produce some unique variations for you to choose from. Simply choose the one you like best, edit it and use it however you like.

Benefits of Using an AI Essay Writer

Save hours of writing time.

Our AI essay writer can generate a first draft in minutes based on your topic, saving you hours of writing time.

Get Research Help in Seconds

Our AI scans relevant information and data on the web in real-time to support your essay's key points

Plagiarism-free content

Our AI essay writer checks your work for plagiarism. Write with confidence knowing your essay is original. Available on teams plan.

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Vice president, tobi.

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Kristin Minasian

Digital content producer, living spaces.

Our AI writer tool has a built-in plagiarism checker that scans the generated content to ensure it is 100% original and unique. It is available in our teams plan .

To get the best essay possible, review the AI-generated draft closely and refine it based on your own ideas and knowledge of the topic. Don't just submit the draft as-is without reviewing and improving it yourself. The AI can only do so much.

Yes, you can edit and modify the essay generated by the AI writer. It only creates a first draft for you to refine then how you see fit. The tool is meant as a starting point, not the finished product.

The AI essay writer works by taking the topic and instructions you give it and using its natural language processing abilities to understand what you want to write about. It then refers to its database of topics and how different elements like thesis statements, body paragraphs, and conclusions are generally structured. From there, it writes the first draft of the essay for you.

An AI essay writer is a tool that uses artificial intelligence to help with writing essays. You provide a topic and description, and the AI will generate a draft essay for you.

Generate anything with other AI tools

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We've collected all the resources and tips you need to write content effectively.

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AI Copywriting, Explained: How It Works and How It Can Work for Your Brand

In this article, we address some of your burning questions about AI copywriters.

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How to Nail Tone in Writing: 34+ Examples of Tone

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Feeling Speechless? Here's How to Overcome Writer's Block

Writer’s block is frustrating, but recovery is possible. Here’s a quick writer’s block rehab session to get you back into the creative groove.

Effortlessly Elevate Your Content with AI Essay Writer

So you need to generate some content for your business blog or marketing campaign but you're short on time and ideas. Don't worry, there's an easy solution. You've probably heard of AI essay writers, these tools that automatically generate essays and articles on any topic. But did you know they can actually be useful for creating content?

Keep reading to find out how an AI essay writer can make your life as a business owner or marketer so much easier. With just a few clicks, you'll have a unique, well-written draft that you can then customize as needed. Who knew artificial intelligence could be so helpful for your business?

What Is an AI Essay Writer and How Does It Work?

An essay writer is an AI writing tool that can automatically generate essays, articles, and content based on a topic or subject you provide. It analyzes thousands of examples from the web to learn the patterns of good writing and can then generate original content on demand.

How does it work exactly? AI essay writers use natural language generation technology, like GPT-4, to generate human-like content from scratch. You simply input a topic, or subject, and the AI studies examples of similar content to get an understanding of structure, vocabulary, tone, and more. It then generates a draft for you.

AI essay writers can be an effective tool for quickly generating draft content, ideas, and outlines. The content can then be edited and refined by a human to publish ready quality. For businesses and marketers, an AI essay writer offers an efficient way to produce quality content at scale to feed your content marketing machine.

Benefits of AI Essay Writer for Businesses and Marketers

An essay generator tool can be an incredible resource for businesses and marketers. Here are a few of the major benefits:

Save Time and Increase Productivity

Coming up with blog posts, social media updates, and other content on a consistent basis requires a lot of time and effort. An AI essay writer can help automate some of the initial content creation, allowing you to focus your efforts on editing and optimizing the content. This can help significantly boost your productivity and allow you to scale your content output.

Generate Unique Content

One of the biggest challenges with content creation is coming up with new and original ideas and topics to write about. An AI-powered essay writer has been trained on massive datasets and can suggest unique topics, titles, outlines, and more to spark your creativity. The content it generates will be completely unique and original.

Improve Search Ranking

High-quality, keyword-rich content is essential for achieving high search rankings in Google and other search engines. An AI essay writer can help you  seamlessly integrate keywords into the content it generates for you. It may also suggest synonyms, related phrases, and semantically similar terms to help optimize your content for search.

Using an essay generator can minimize the need to outsource content creation and allow you to scale your operations without a huge investment. For small businesses and startups especially, this cost savings can be hugely impactful.

Appeal to Wide Audiences

An AI essay writer is able to generate content to appeal to audiences with varying levels of expertise. This allows you to reach a wider range of potential customers and clients with your content marketing efforts.

In summary, an essay writer has the potential to revolutionize content creation for businesses. The time savings, productivity benefits, and cost effectiveness make a strong case for implementing AI for content marketing. With an essay writer, you can scale your content output and achieve real results.

Types of Essays AI Writers Can Handle

Academic essays.

Got a research paper due for class? An AI essay writer has you covered. Simply provide the topic, length, and any sources you want included, and it can generate a well-researched essay. AI writers can crank out essays on any academic subject imaginable.

Business Writing

AI essay writers are great for producing professional business documents like reports, proposals, executive summaries, and more. When you need a polished piece for an important presentation or to share with colleagues, let an AI writer take care of the heavy lifting. It will structure the content in a clear, concise manner.

Creative and Personal Writing

Believe it or not, AI can also produce imaginative stories, poems, blog posts, and other creative works. While they may lack human originality, their outputs can provide inspiration or a framework to build upon. AI writers can also help with personal essays, cover letters, and other subjective pieces. They capture the tone and voice you're looking for based on examples you provide.

Emails and Messages

Save time on your inbox with the help of an AI writer. Whether it's drafting professional emails, text messages, or social media captions, AI writers can compose clear, engaging messages for you. They'll analyze the context and recipient to match the right tone.

So whatever style of writing you need, let an AI essay writer lend you a hand. They can research topics, organize ideas, and translate your thoughts into coherent text.

How AI Essay Writer Improve My Writing Skills?

Using an AI essay writer can actually help improve your own writing skills. Here's how:

  • It teaches you new vocabulary and language structures. As you review the essays the AI generates, you'll pick up fresh words, turns of phrase, and ways to express ideas that you can add to your own personal style.
  • You learn from its example structure. Most AI essay writers are trained on millions of high-quality human-written essays. Reading the logical flow of introductions, body paragraphs, transitions, and conclusions in its output helps you better grasp effective essay structure.
  • It shows you common mistakes to avoid. While AI writers continue to improve, they still make some grammar, punctuation, and stylistic errors. Spotting those helps develop your proofreading skills.
  • It provides inspiration when you're stuck. If you don't know how to start an essay or need a creative hook, reviewing a few opening lines and thesis statements from an AI can spark ideas to get you going.
  • It gives you a starting point to build on. Use an AI's draft paragraphs on a topic as a jumping off point. Keep the good parts, revise the weak parts, and add your own voice and style. It's faster than writing from scratch.
  • It helps practice editing and revising. Take the AI's full essay draft and work on tweaking it to improve flow, word choice, structure and coherence. Developing editing skills makes you a stronger writer.

So don't just treat that AI essay writer as a quick fix. Analyzing its output and using it strategically will make you a sharper, more skilled writer in the long run. Those benefits are well worth the investment for your education or career.

Use Cases of Essay Generator

An essay writer can quickly generate long-form content on any topic by compiling information from various public data sources. This can be useful for researching and learning about new topics or for discovering potential content ideas. The generated essays provide an overview of the subject by synthesizing information from across the web into a cohesive essay.

Streamline Content Creation

One of the significant advantages of using an essay writer is its ability to streamline your content creation process. By effortlessly generating well-structured essays, it serves as a solid foundation for your writing. You can utilize these AI-generated essays as rough drafts or outlines, saving you valuable time and effort. With the generated structure in place, you can focus on refining and enhancing the content to align with your specific audience and goals.

Inspiration

Reading through AI-generated essays on topics related to your business or industry can spark new ideas and inspire new content. The software might highlight interesting angles, statistics, examples, or opinions you hadn't considered before. These types of unexpected insights and ideas can get the creative juices flowing.

Foster Creativity and Innovation

The AI-generated essays can act as a catalyst for creativity and innovation. As you explore the content it generates, you may come across unique angles, thought-provoking statistics, or inspiring examples that spark new ideas. This unexpected insight can help you push the boundaries of your content creation, allowing you to craft engaging and original pieces that resonate with your target audience.

Adapt to Evolving Trends

Staying relevant in a rapidly changing landscape is crucial for any marketer or business. Using an essay writer into your content creation strategy can help you stay up-to-date with the latest industry trends and insights. By infusing this knowledge into your content, you position yourself as an informed professional and attract readers who value your expertise. This not only enhances your credibility but also keeps you ahead of the curve in your industry.

Promote Consistency and Branding

Maintaining consistent branding across your content is essential for establishing a strong online presence. An essay writer can assist you in ensuring consistency by generating content that aligns with your brand voice, tone, and messaging. This cohesive approach fosters brand recognition and builds trust with your audience, ultimately leading to increased brand loyalty and business growth.

Using an AI essay writer for content creation has undoubtedly revolutionized the way marketers and businesses approach their writing strategies. The benefits it offers are truly surprising and worth exploring further.

Essay writer can be incredibly useful tools for creating content if used strategically and ethically. The key is finding an essay generator that produces high-quality, coherent content, and then taking the time to thoroughly review and edit the output. Used properly, essay writer allow you to work smarter, not harder, and ultimately scale your content creation in a big way. Give it a try and you might just be surprised at how much time it can save you and how it helps overcome that dreaded writer's block.

Ready to try out your AI writer?

Get started with our set of AI tools to get the most out of your content.

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Rytr's AI generates original and compelling content that sounds like you , not a robot.

happy copywriters, marketers & entrepreneurs

satisfaction rating from 1000+ reviews on TrustPilot, G2 & more

25,000,000+

hours and $500 million+ saved in content writing so far

Trusted by 8,000,000+ content writers from companies including

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Your Shortcut to stellar content

Choose from over 40+ content use cases and templates to streamline your writing workflow.

AI Autocomplete Text

Use AI to finish sentences/paragraphs, enhancing writing flow and quality.

Text Editing: Continue Writing

The Continue Ryting feature automatically writes for you.

Text Inflator

Expand Content turns one sentence or paragraph into two with rewrites.

Grammar Checker & Text Improver

Refine content for clarity, grammar, and tone.

AI Paragraph Generator

Add contextually relevant paragraphs to content for enhanced depth.

Rewording Generator

Rephrase content for clarity, conciseness, and unique presentation.

Sentence Shortener

Shorten content, retaining key points for concise, clear output.

AI Command Generator

Instruct Rytr's AI on what to write and it will do so.

Blog Outline Generator

Generate unique blog ideas and outlines for engaging content.

AI Blog Generator

Create engaging blog sections for improved readability and interest.

AI Meta Description Generator

Write meta descriptions for improved rankings and clicks.

SEO Meta Title Generator

Craft SEO-friendly meta titles for enhanced visibility and clicks.

AI Landing Page Generator

Generate persuasive copy for engaging landing pages and conversions.

Keyword Extractor

AI extracts keywords from text for SEO, content themes, and trends.

AI Keyword Generator

Leverage AI for high-performing keywords to boost SEO and web traffic.

AI Newsletter Generator

Craft engaging newsletters to update subscribers and foster relationships.

Custom Poem Generator

AI helps create expressive, engaging poems with unique verses.

AI Song Generator

Use AI to create captivating song lyrics and inspire songwriting.

AI Story Generator

AI-crafted intriguing story plots for engaging narratives.

Call To Action Generator

Create impactful CTAs with AI to drive engagement and action.

Social Media Ad Generator

Craft compelling ad content for social media to boost engagement.

Google Ad Generator

Create engaging Google Search Ads for improved performance.

AI Caption Generator

Create unique post and caption ideas for engaging social media.

AI SMS Generator

Create effective SMS and notifications for clear communication.

AI Bio Generator

Craft engaging social media bios and enhance online presence.

Video Description Generator

Craft detailed video descriptions to attract and inform viewers.

Video Channel Description Generator

Craft detailed descriptions for video channels to boost visibility.

Video Idea Generator

Create engaging video ideas, boosting engagement and subscribers.

AI LinkedIn Post Generator

Harness AI for engaging LinkedIn posts to boost visibility and connections.

AI Quora Answer Generator

Craft detailed Quora answers to enhance credibility and reach.

AI Facebook Post Generator

Create captivating Facebook posts to boost engagement and reach.

AI Product Description Generator

Create detailed product descriptions for enhanced appeal.

AI Bullet Point Generator

Create impactful bullet point descriptions for products.

AIDA Copywriting Generator

Create compelling content with AIDA framework for engagement.

PAS Copywriting Generator

Craft content with PAS framework to address pain points.

AI Response Generator

Create effective responses to messages and emails for better communication.

Business Pitch Generator

Create persuasive business pitches for impactful impressions.

AI Business Idea Generator

Create unique business ideas for entrepreneurial inspiration.

AI Cover Letter Generator

Create persuasive cover letters for standout applications.

Email Generator

Create effective emails for clear communication and professionalism.

AI Interview Question Generator

Harness AI to create relevant interview questions and make informed hires.

AI Job Description Generator

Craft compelling job descriptions with AI to attract qualified candidates.

AI Tagline Generator

Create memorable taglines, enhancing brand recognition and appeal.

AI Real Estate Listings

Generate compelling real estate descriptions to attract potential buyers.

Recognized by G2 as one of the leading brands in the AI Writing space

Ai content that sounds like you, not a robot..

Rytr analyzes a sample of your writing and mirrors your tone when it generates content. Plus, you can create multiple custom tones to best suit different scenarios, projects or clients.

Keep plagiarism in check

Ensure everything you create is unique. Millions of users rely on Rytr for crafting quality, eloquently written, and plagiarism-free work.

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AI Image Generator

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Instant Text to Diverse AI Image Magic

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How to Make AI-Generated Images from Text?

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Why Choose Artguru AI Image Generator

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AI Image Generator

Type in a detailed description and get a selection of AI-generated images to choose from.

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Experiment with AI-generated images to find the right vision

Speed up your creative brainstorms and generate AI images that represent your ideas accurately. Explore 100+ video and photo editing tools to start leveling up your creative process.

Break through creative blocks with text to image AI

With a detailed description, Kapwing’s AI Image Generator creates a wide variety of images for you to find the right idea. Generate AI images specially created for you with text to image AI.

Easily create AI images powered by OpenAI's Dall-E

Describe the image you want to create—the more detailed you are, the better your AI-generated images will be.

Experiment with AI-generated images to find the right vision Screenshot

How to make AI-generated images

Start a new project in Kapwing, and click on the lightbulb in the upper left-hand corner to open Kapwing AI. Select "Create image."

Enter a prompt for the type of image you would like to generate. The more specific you are with your prompt, the better the results will be. Try any of the examples, if needed.

Choose from the selection of AI images and use the full creative suite in Kapwing to make any additional edits. Click “Export project” when you’re done, and download a file.

Your journey of finding the right AI Image Generator ends here

Full of creative editing tools, Kapwing offers everything from an image generator to a photo editor. Kapwing leverages Open AI's DALL·E 2 to power our image generator, embedded in the Image Search side-bar. Creators can type in a text prompt to generate four images and choose their favorite to add to the canvas and export. Tweak the prompt to create images that are closer to your vision.

When you're creating social media graphics and videos, AI generated pictures can be the ideal overlay, background, or subject. If you can't find the perfect picture online or take the perfect photograph, why not generate it from scratch?

Add original art to your designs

Because AI-generated images are original, a creator has full commercial license over its use. It's an ideal tool for making gradient backgrounds, visualizing abstract ideas, bringing to life a fantastical scene, crafting a unique profile picture, designing a collage, and getting tattoo design ideas . When generating images, be mindful of our Terms of Service and respect copyright of other artists when emulating a particular artistic style or aesthetic.

Try Magic Fill to resize photos without stretching

Never worry about distorting photos when you need to resize them. Use Magic Fill, Kapwing's Generative Fill that extends images with relevant generated art using artificial intelligence. Magic Fill uses generative fill AI to extend the background of your images to fit a specific aspect ratio while keeping its context.

Fine tune AI art with AI Photo Enhancer

Streamline your editing process and use artificial intelligence (AI) to automatically improve image quality—this AI tool is a one-click wonder for photos. You can also enhance videos with the inline adjustment tools.

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Frequently Asked Questions

Bob, our kitten, thinking

Are AI-generated images copyrighted?

Yes and no. According to the U.S. Copyright Office, people can copyright the image result they generated using AI, but they cannot copyright the images used by the computer to create the final image. In other words, you can only copyright artwork that is solely made by a human being, not a computer generator — AI-generated images and the final products of AI tools, although uses existing content and artworks made by other artists, are not protected by copyright.

What are AI-generated images?

In short, AI generated images are images crafted, or put together, by a computer. There are different types of AI approaches like generative AI and machine learning AI, so the way AI tools generate content can be different across the board. Typically, AI generates images by taking the prompt you give it, finding patterns and similarities between past-collected prompts and existing content, then combines multiple pieces of content to produce a unified piece of art.

What is the best AI image generator?

It all depends on how detailed your text description is and the image generator’s specialty. For example, Kapwing’s AI image generator is the best for easily entering a topic and getting generated images back in mere seconds. Whereas, Midjourney does the best with realistic images and Dall-E2 does best with cartoon and illustrated text prompts.

What are the best prompts for image generation?

Try these example prompts to get the most accurate images:

  • "A realistic portrait of a family under soft, natural lighting."
  • "Concept art for a tiny magical forest city."
  • "An oil painting of Whitney Houston."

After a couple of examples, try this image generator with your own words and explore the creative possibilities.

What's the easiest text to image website to use?

Among the top AI image generators, we recommend Kapwing's website for text to image AI. From their homepage, dive straight into the Kapwing AI suite and get access to a text to image generator, video generator, image enhancer, and much more. Never wait for downloads and software installations again—Kapwing is consistently improving each tool.

Visit Kapwing's YouTube Channel for weekly tutorials, product launches, and feature showcases.

What's different about Kapwing?

Easy

Kapwing is free to use for teams of any size. We also offer paid plans with additional features, storage, and support.

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Free Online AI Image Generator: Turn Text to Image

Convert words to images online in seconds with Fotor ’ s free AI image generator. Watch your imagination transform into incredible AI art from text and image prompts at your fingertips. No watermarks or ads. Customize styles, ratios, and details as desired.

Create AI Images from Text or Image as You Want

AI generate watercolor fairy from text with Fotor AI image generator

Introducing AI Text to Image Generator Online

It ’ s simple to get the perfect images or create stunning visuals with our free AI image generator. Dream it, and use text to image online to visualize it. Easily create different AI images for products, characters, and portraits at your fingertips, even if it doesn ’ t exist yet.

Type your simple text description, and our AI generator lets you create high-quality images in seconds. Powered by AI technology, our AI image creator makes it easy to bring imagination to life. The possibilities for creativity are endless!

Ai image to image generator

Introducing AI Image to Image Generator Online

Refresh and enhance your images in seconds. With just a few clicks, you can get stylized and high-quality images with incredible details. Whether you want to turn a sketch into a colored masterpiece , convert your selfie to an anime avatar, or draw a sunset on a sky, our image-to-image creator has got you covered.

Just upload a reference image, select a desired artistic style, customize the quantity, model, style, similarity, and negative prompts, and let Fotor do the rest. Whether you are an artist, designer, or beginner user, you can explore limitless possibilities in the world of AI image-to-image conversion.

Generate AI images in Various Art Styles

Fotor AI art generator offers concept art, realistic, cartoon, sketch, oil painting, digital art, 3D, and more image styles for your AI image generation. Simply enter your text description in Fotor‘s AI photo generator, choose one style and aspect ratio to match your ideas, ask AI to draw, and turn your imagination into one-of-a-kind AI images, including AI paintings, AI drawings, illustrations even NFT artworks. You can download it directly, or edit it for better graphics.

The illustration style of the night view of Mount Fuji from a distance generated by ai

Best Text Prompt Formula for Creating Stunning Art

Effective prompts are crucial for image creation from text. Consider using this formula: subject + detailed description + environment + art style + lighting + image quality. For example, "Half body portrait of a beautiful blonde girl in a white dress, in the forest, oil painting art, soft natural lighting, and HD image quality.“

Moreover, the initial prompts carry greater significance. You can add parentheses around keywords to signify an increased value for that specific keyword. For instance, "(horse:1.3), a tiger in art style".

Experience Various Photo Types and Styles

Create images with AI in Fotor and explore endless possibilities. Thousands of photo and art styles are available. No matter if you want to imitate the styles of famous artists, create wallpapers and illustrations, engage in fan art for anime and game characters, or design home decor and products, Fotor fulfills your needs.

Nft art

Turn your art into extraordinary NFTs in the style of Van Gogh, Dadaism, etc.

Ai oil painting

Generate compelling landscapes in the style of impressionism, surrealism, ink-wash painting, etc.

Anime

Cartoon & Anime

Turn images into cartoons in the style of Disney, Makoto Shinkai, Miyazaki Hayao, etc.

Van gogh art

Thumbnails & Covers

Generate and edit eye-catching video thumbnails and covers like OP art and impressionism.

Ai landscape wallpaper

BGs & Wallpapers

Create dazzling desktop backgrounds and phone wallpapers like ink painting in 4K quality.

Indoor design

Interior Design

Effortlessly add a touch of modern minimalism or luxury to your rooms with captivating aesthetics.

Product image

Product Design

Elevate the appeal of your products with incredible details to drive business success.

Ai generated product logo

Logos & Icons

Generate impactful logos and icons in a minimalist style to embody the essence of your brand.

Headshot photo

AI Faces & Avatars

Create 3D, realistic, and lifelike faces, headshots, avatars, and characters.

Realistic image

Deepfake Images

Generate photorealistic images that amaze with lifelike details, turning digital into reality.

Ai generated blythe doll image

Blythe Doll

Blend AI artistry with craftsmanship to create an enchanting and fairy tale style world of Blythe dolls.

Ai generated tatto

Tattoo Design

Create unique tattoo designs in Ukiyo-e or Gothic style to express your individuality.

How to Make AI-Generated Images and Art

Create Digital AI Avatars 

Making an avatar has never been easier. Text to image can bring your vision to life. Fotor ’ s image-to-image generator is also available. Use a generated image or upload your own, then select a style or type in negative text prompts, adjust similarity settings, and create various outputs like professional headshots , ASCII art, and cartoon AI avatars in seconds. Unlock free account benefits and credits today.

AI professional Headshot pictures generated from image

All Photo Editing Features

Apart from customizing image style and ratio, Fotor photo editor offers a comprehensive range of photo editing options. Once your image is generated, you can enhance it with various editing tools, including AI Upscaler, Background Remover , Magic Eraser, and AI Replacer for improved visuals, as well as adding captions or graphics and unblurring images from our library to AI images for more effective storytelling.

Use for Captivating Designs

Starting with a text prompt or a reference image, you can transform inspirations into real-art like images that fit your design project perfectly. With endless image editing tools, you can beautify the AI-created art to a new level. But that ’ s not the end. Import your digital visuals directly into our online Graphic Designer , and you can enrich the AI-generated images for free with tons of assets like backgrounds, illustrations, icons, and more. Transform your creative concept effortlessly into a captivating design.

Design ai generated image

Generative AI for All Occasions

For content creators

For content creators

Generate eye-catching photos from the text or change reference image styles in your fingers, and create content faster.

For entrepreneurs

For business

Convert image or text to image, transform your ideas into real product design and save much time and money in branding promotion.

For buddding artists

For artists

Easy to get much inspiration and speed up your artwork creation process. Explore various art styles like NFT, ASCII, OP, Cubism, Pixar, and more.

More than a Text and Image to Image Creator

Elevate the quality of your AI-generated Images

Ai image unblur

Image Unblur

Unblur and sharpen your blurry photos to elevate photo clarity and details.

Ai image upscaler

AI Upscaler

Enhance images to 4k resolution and increase image quality in one click.

Ai image replacer

AI Replacer

Replace faces, background, sky, and anything else for professional use or fun.

Why Create AI Images with Fotor?

Various styles

Various Styles

Customize your visuals from text prompts or images with hundreds of styles, moods, and designs.

High quality

High-res Images

Make eye-catching pictures, graphics, and illustrations in high resolution and clarity. You can also enhance image quality inside the generator.

No watermark

No Watermarks

The AI image creator offers free credits and allows users to share and export generated images without watermarks.

Cloud storage

Reuse in Cloud Storage

Never worry about accidental image loss. Access, remix, and edit your created digital visuals online anytime, anywhere.

Free to use

Free Image Creation

Get eight free credits with ease. By earning rewards , you can create up to thirty stunning images with thirty free credits.

Fast generation speed

Instant Generation

Say goodbye to the painstakingly long wait. Get your AI-created images to create visual content in seconds.

Turn Text-to-Image with Fotor's Free AI Image Generator

Capture your thoughts and bring your ideas to life with Fotor ’ s AI picture generator from text and images! Simply input your image keywords in the box or choose from our default text prompts to enrich your image description and get the perfect result. Or you can refresh and enhance uploaded images as desired. With Fotor ’ s AI photo generator app, creating artistic works is easier than ever before.

Fotor's AI Image Generator App on the Go

Dive into a seamless AI image-generating experience. Download the Fotor AI photo generator app to create images anywhere, anytime.

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Fotor AI Image Generator Reviewed by

Fotor can create art in different styles such as 3D, realistic, oil painting, cartoon, illustration, photography, and more.

Paul Roetzer

Paul Roetzer

CEO of PR 20/20

The best part is that it has also launched an image-to-image AI photo generator. Apart from that, you can define your style including Photography, Conceptual art, Anime , Cartoon, Oil painting and more.

Arjun Sha

Passionater

With its use of machine learning, it provides an efficient and effective way to enhance photos. The AI art generator tool has made photo editing easier and more convenient.

Amartya

Gaming Tech writer

Text to Image AI Generator FAQs

What are the guidelines for using our artificial intelligence photo generator, what kind of ai image model does the fotor ai photo generator use, how does ai generate images?, does the ai create unique images, is fotor ai image generator free, can i use ai images for commercial purposes?, is the ai-generated image of fotor's ai photo generator safe, what can you do with a text-to-image ai generator, what's the best ai image generator, who has the copyright of ai-generated pictures, how to use ai picture generator for our creation, can i use fotor’s ai picture generator on desktop and mobile, how to edit ai-generated images in fotor photo editor, how to specify my prompts for better generation results, can i use ai-generated celebrity images, ai picture generator related posts.

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Latest articles

Learn more about ai, citing chatgpt, using chatgpt for assignments, how do ai detectors work, using chatgpt in your studies, ai tool reviews.

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Best AI Detectors

AI detectors detect text generated by AI tools like ChatGPT. We tested various example texts, including ChatGPT-generated, mixed AI–human, and fully human, as well as text generated by paraphrasing tools. Check out the best AI detectors

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Best Paraphrasing Tools

Paraphrasing tools improve your writing by automatically rewriting text. We tested seven popular free and premium paraphrasers to determine their reliability when it comes to producing correct, readable English. Check out the best paraphrasing tools

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Best summarizers

Summarizers are ideal for distilling lengthy and complicated texts down to their key points—but which summarizers are most accurate? We tested 11 summarizers to find out. Discover the most accurate summarizer

Universities’ policies on AI

Universities’ policies on AI

Based on our analysis of the top 100 US universities, it appears that the majority haven’t established clear-cut regulations concerning AI tools at this time. As a result, it is up to individual professors to determine what is permissible in their respective courses.

Check out policies in detail

Scribbr's stance on AI

Scribbr's stance on AI

We think educators should be open to the possibilities presented by AI-powered tools. Students should employ these tools in an honest and responsible way, using them to facilitate learning rather than to skip steps in the learning process.

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Best free AI image generators of 2024

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Craiyon, Leonardo, Freepik

Best free AI image generator overall

Generative AI is growing in potential and utility with every passing week as companies continue to "one-up" each other. What began as creating nifty images from a quick text prompt has become full movie generation and animating previously static images.

Still, when it comes to free tools, there are some excellent options for creating AI images. Recently, OpenAI announced free users of ChatGPT would be able to create images in DALL-E for the first time, albeit just two per day. 

Others, like those on this list, are more generous with their free offerings, but as always you'll get more options if you're happy to open your wallet (you can check out our guide to the best overall AI image generators for that ).

So, whether you're looking for a quick image to generate some laughs in the group chat, or you're interested in testing out some ideas to help you make a purchasing decision on a paid plan, here are our picks for the best free AI image generation tools.

Leonardo

1. Leonardo

Our expert review:

Specifications

Reasons to buy, reasons to avoid.

Not only is Leonardo our pick for the best overall AI image generator, but its generous free tier makes it an excellent choice for newcomers, too.

Leonardo offers free plan users a bundle of tokens to use against AI image generation, and there's no expiry for the free offering. That means you won't need to subscribe after a month or so, or keep switching email addresses (we've all done it).

Still, being free is one thing, but that alone isn't what makes Leonardo worth trying. While you'll need to be a premium subscriber for certain features, it remains an excellent tool for just about any project.

It'll be slower without paying, and Leonardo.Ai holds rights to what you're creating, but for a quick image here or there it's well worth your time.

Freepik may not be the AI image-generation tool on everyone's lips, but it should be. The app is easy to use, but the free tier lets you generate 20 images a day.

If you were so inclined, that could be 7,300 images a year for nothing, built from over 140 million stock images, with rapid generation, too.

You can even upscale a couple of images a day for free if you have the credits, and the flexible payment options mean you can get 7,000 AI credits for just £7 per month, meaning you don't have to go the "whole hog" of £32 per month if you need something more.

Craiyon is a little different to the other options on this list because it's almost inverted - the base product is free, and the paid tiers improve upon it, rather than the free version being a watered-down version of the product.

There are some downsides, of course. Expect watermarks, for example, while you can pay to remove limitations like ads and higher priority, but for no outlay you can get 9 free images at a time.

Paid members help keep the lights on, of course, and it's worth noting that plans start as low as $5 per month. There's also a handy Background Remover tool you can use with no restrictions with no subscription.

Microsoft Copilot

4. Microsoft Copilot Designer (DALL-E 3)

Offering all the goodness of DALL-E 3 from ChatGPT but with a free tier that's plenty capable, Microsoft Copilot Designer offers 15 image generations a day.

The premium plan adds additional app integrations within Microsoft 365 and faster performance, but even without paying it's an impressive tool - not just for image creation, but for adjusting images, too.

Whether it's pulling specific elements from an image, making adjustments to the color saturation, or replacing items entirely, it's impressively malleable.

5. Google ImageFX

Google's ImageFX is a free AI generation tool from top to bottom, and it leans on the new generation Imagen 3 model. It offers relatively realistic images from a quick text prompt, and there are no limitations – so you can create to your heart's content.

Why's it a little lower on this list? In our testing, it is a simple platform that can only generate square images. This is an experiment rather than a product, but the underlying technology will be built into Gemini and other products in the future, so it is a chance to see what is likely to be coming soon. 

Google will also be able to retain your interactions for a year and a half, so that's worth considering.

More from Tom's Guide

  • How to use Midjourney's new AI image editor
  • I've been skeptical about AI features on phones, but Google's Gemini might change my mind
  • Hedra lets you give AI characters a voice — this new model is a huge step up

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A freelance writer from Essex, UK, Lloyd Coombes began writing for Tom's Guide in 2024 having worked on TechRadar, iMore, Live Science and more. A specialist in consumer tech, Lloyd is particularly knowledgeable on Apple products ever since he got his first iPod Mini. Aside from writing about the latest gadgets for Future, he's also a blogger and the Editor in Chief of GGRecon.com. On the rare occasion he’s not writing, you’ll find him spending time with his son, or working hard at the gym. You can find him on Twitter @lloydcoombes.

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image essay ai

Google just released the newest version of its AI image generator

An AI generated image of a large dragon next to a lamb

The latest version of Google's text-to-image model is now available to the masses.

Teased back in May at Google I/O , Imagen 3 is the tech giant's most advanced AI generator that rivals other models like Midjourney, DALL-E 3, and X's very uncensored Grok-2 . Speaking of which, Google has taken a different approach than Grok-2, which has swiftly become known for generating copyrighted images and deepfakes of public figures . Unlike Elon Musk's AI model, Google says it "used extensive filtering and data labeling to minimize harmful content in datasets and reduced the likelihood of harmful outputs." Images created by Imagen 3 also have Google's SynthID digital watermark for identifying the image's provenance.

Safety protocols aside, Google says Imagen 3 has greater versatility and understanding of prompts, higher quality images, and better text rendering — text being a pesky ongoing problem for all AI image models.

Users are already testing it out in the wild with impressive results.

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But some users on Reddit have criticized the model for being too restrictive in what images it is allowed to generate.

How to try Google's Imagen 3 model

If you'd like to see for yourself and test the boundaries of what Google deems offensive or inappropriate, Imagen 3 is available now via ImageFX and VertexAI . Soon, Imagen 3 will become available throughout Google AI features in Workspace and Gemini on the web and mobile.

Topics Artificial Intelligence Google

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Cecily is a tech reporter at Mashable who covers AI, Apple, and emerging tech trends. Before getting her master's degree at Columbia Journalism School, she spent several years working with startups and social impact businesses for Unreasonable Group and B Lab. Before that, she co-founded a startup consulting business for emerging entrepreneurial hubs in South America, Europe, and Asia. You can find her on Twitter at @cecily_mauran .

The Grok logo is being displayed on a smartphone with the X AI icon visible in the background.

Jenna Ortega says she deleted Twitter after seeing explicit AI images of herself as a minor

Jenna Ortega

Actor Jenna Ortega said she deleted X, then known as Twitter, after a "terrifying" experience encountering AI-generated pornographic images of herself on the platform when she was a minor.

In an interview with The New York Times published Saturday, Ortega, 21, reflected on how she feels about artificial intelligence.

"I hate A.I.," she told the Times, noting that while it "could be used for incredible things," it has also been abused by some online.

"Did I like being 14 and making a Twitter account because I was supposed to and seeing dirty edited content of me as a child? No," she said. "It’s terrifying. It’s corrupt. It’s wrong."

Ortega, one of the stars of "Beetlejuice Beetlejuice," said that when she was 12 years old, the first direct message she ever opened on her Twitter account was an unsolicited picture of a man's genitals.

"And that was just the beginning of what was to come," she said. "I used to have that Twitter account and I was told that, 'Oh, you got to do it, you got to build your image."

The influx of "absurd images and photos" got so bad after "Wednesday" came out in 2022 that Ortega decided to delete her account altogether a couple of years back.

"It was disgusting, and it made me feel bad. It made me feel uncomfortable," she said. "Anyway, that’s why I deleted it, because I couldn’t say anything without seeing something like that. So one day I just woke up, and I thought, 'Oh, I don’t need this anymore.' So I dropped it."

A spokesperson for Ortega did not immediately respond to a request for comment. X did not immediately reply to a request for comment.

Ortega told the Times that she is still learning how to protect herself.

Her concerns point to a growing pattern of nonconsensual AI-generated deepfakes being created and circulated online, mainly because of the rapidly expanding arsenal of AI tools now available for public use.

The sophisticated apps and programs, which “undress,” or “nudify,” photos, and “face-swap” tools that superimpose victims’ faces onto pornographic content have predominantly targeted women and girls.

More nonconsensual sexually explicit deepfake videos were posted last year than in every other year combined, according to independent research from deepfake analyst Genevieve Oh and MyImageMyChoice, an advocacy group for deepfake victims. The research found that Ortega is among the 40 most-targeted celebrity women on the biggest deepfake website.

An app that claimed to be able to undress women using AI ran multiple ads online this year using a manipulated, blurred image of Ortega at 16 years old.

The ads showed how the app, called Perky AI, could change Ortega’s outfit in the photo based on text prompts, including “Latex costume,” “Batman underwear” and, finally, “No clothes."

Teen actor Xochitl Gomez, known for her role as America Chavez in "Doctor Strange and the Multiverse of Madness," also said in January — when she was still 17 — that she had found nonconsensual sexually explicit deepfakes of herself on social media and that her team had been unable to get the material taken down.

The same month, Taylor Swift became yet another target of such technology. Nonconsensual deepfakes of her nude and in sexual scenarios went massively viral on X, prompting it to make her name temporarily unsearchable .

But it's not just celebrities who are targeted. Throughout the past academic year, teen girls in the U.S. have been increasingly victimized by fake nude photos made with AI. And even though some states have enacted legislation to target deepfake pornography, the paths to legal recourse are varied and lack cohesion across the country.

A middle school in California expelled five students in March after they were accused of using generative AI to create and share fake nude images of their classmates — stoking fear among families within the school district. Nude AI-generated deepfakes of students at a New Jersey high school similarly sparked turmoil last year.

image essay ai

Angela Yang is a culture and trends reporter for NBC News.

Jenna Ortega reveals she was sent 'dirty edited content' of herself as a child: 'Repulsive'

Jenna Ortega is speaking out about the rise of explicit AI images .

The " Wednesday " star, 21, revealed in an interview with The New York Times ' "The Interview" podcast that she left X, formerly Twitter, after being sent fake pornographic pictures of herself that were created with AI.

"Did I like being 14 and making a Twitter account because I was supposed to and seeing dirty edited content of me as a child?" she said. "No. It's terrifying. It's corrupt. It's wrong. It's disgusting."

The actress, who shared the anecdote after being asked how she feels about AI, continued that she deleted her account due to the influx of "these absurd images and photos" of herself after the release of the Netflix series " Wednesday " in 2022.

"It's just so repulsive, and I already was in a confused state that I just deleted it because it was unnecessary and I didn't need that," she said, adding, "It was just disgusting, and it made me feel bad. It made me feel uncomfortable. It's awful. Anyway, that's why I deleted it, because I couldn't say anything without seeing something like that, and I don't need to be seeing that every day."

Ortega also told the Times that the first direct message she opened when she was 12 was an "unsolicited photo of a man's genitals," which was "just the beginning of what was to come." The actress no longer has an official account on X, though she is active on Instagram.

How Jenna Ortega made an iconic 'Addams Family' outsider her own for Netflix's 'Wednesday'

Earlier this year, a series of sexually explicit AI images of Taylor Swift spread on X, sparking widespread outrage. Many of the photos were removed for violating X's policies.

After roles on the Disney Channel series "Stuck in the Middle" and in films like " Scream " and " The Fallout ," Ortega achieved greater fame following the release of "Wednesday," which became a massive hit for Netflix in 2022.

She will next star alongside Michael Keaton and Winona Ryder in " Beetlejuice Beetlejuice ," the highly anticipated Tim Burton sequel that hits theaters on Sept. 6.

Jenna Ortega speaks out on age-gap controversy with Martin Freeman in 'Miller's Girl'

Speaking on the "Interview" podcast, Ortega reflected on the pressures of being famous at such a young age.

"I'm so underdeveloped," she shared. "My prefrontal cortex isn't even fully there yet, technically, you know? I want to be making the mistakes and learning from them and falling on my face, and maybe the opposite: I want to be extremely confident, and try everything, and do everything, and be the biggest risk taker in the world. There's a lot more at stake now, whether I like it or not."

The "Scream VI" star previously opened up about the dark side of social media in an interview as part of Variety's Actors on Actors series in 2023.

"Social media, what it does to anyone our age, it's such a comparing game," she said. "It almost influences bandwagon mentality. … It's very manipulative."

Contributing: Edward Segarra

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Trump Promotes A.I. Images to Falsely Suggest Taylor Swift Endorsed Him

The former president has been preoccupied with the popularity of the pop music megastar, who endorsed Joseph R. Biden Jr. over him during the 2020 election.

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  • Aug. 19, 2024

Former President Donald J. Trump, who has notably harbored a grudge against the pop music megastar Taylor Swift, set the internet ablaze on Sunday when he shared social media posts suggesting that she had endorsed him and that her fans could help him win the November election.

In a post on his social media site, Truth Social, Mr. Trump drew attention to a group of images that were created using artificial intelligence. One showed Ms. Swift dressed up as Uncle Sam with the headline: “Taylor Wants You to Vote for Donald Trump.” The others depicted a crowd of young women wearing matching “Swifties for Trump” T-shirts.

At least one of the images, which were shared by a social media influencer aligned with Mr. Trump, was labeled “satire.”

“I accept,” Mr. Trump wrote in a post, seemingly implying that he had received Ms. Swift’s endorsement.

A representative for Ms. Swift, who has not made an endorsement this election cycle after backing Joseph R. Biden Jr. in 2020, did not immediately respond to a request for comment on Monday.

The mockery from Democrats was swift.

Representative Eric Swalwell of California, appearing on CNN on Monday, said that the move would backfire on Mr. Trump.

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Why nvidia earnings matter more for the ai stock boom than fed policy.

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A smart phone is displaying the Google Alphabet stock price on the NASDAQ market, with Google ... [+] Alphabet visible in the background, in this photo illustration taken in Brussels, Belgium, on December 29, 2023. (Photo Illustration by Jonathan Raa/NurPhoto via Getty Images)

The Federal Reserve does not set policy based on the valuations of AI stocks.

But you would not get that point of view from a March interview with investment strategist Edward Yardeni. Perhaps he confused Fed Chair Jerome Powell with Alan Greenspan when suggesting the Fed was keeping interest rates high to slow a stock market bubble driven by AI stocks, according to Investor’s Business Daily .

I disagree with this view for three reasons:

  • Powell’s approach to the Fed contrasts sharply with Greenspan’s.
  • The dot-com stock boom is very different from the generative AI one.
  • Should the Fed cuts rates in September, the impact on generative AI stocks is likely to be positive but less significant than whether tech companies grow faster than investors expect.

Instead, I think the Fed sets interest rate policy based on keeping inflation below 2% while avoiding a spike in the unemployment rate. Moreover, should the Fed cut interest rates in September, the effect on AI stocks will be less significant than Nvidia’s upcoming earnings report.

I asked Yardeni to share his thoughts on whether he thinks Powell is setting rates to prevent a generative AI stock bubble from bursting and how September rate cuts would affect generative AI stocks.

In response, he sent me an August 25 report he co-authored titled “Market Call: Did Powell Just Pour Gasoline On Stock Market's Fire?” “For now, we are sticking with our Roaring 2020s base-case scenario (with a 60% subjective probability) targeting the S&P 500 at 5800 by the end of the year , 6300 next year, and 6825 in 2026 (chart),” according to Yardeni Quick Takes .

iPhone 16 Release: Apple Confirms Special Event, On A Surprise New Date

‘exciting updates’—new details of donald trump’s mystery crypto project spark wild bitcoin rival speculation, trump signals he may skip abc news debate after bashing network.

The report leaves me wondering what he thinks about my questions — and also suggests he believes the Fed should set policy to keep stock valuations from getting too high.

Unpacking Edward Yardeni’s Claim That Fed Policy Is Driven By AI Stock Prices

In March, Yardeni suggested the Fed kept interest rates high due to concerns about high AI stock prices. “The Fed may not directly signal concern about a hot stock market,” he told IBD , “but I think it is top of mind.”

To be sure, Yardeni reportedly based this conclusion on the January Fed meeting minutes, noted IBD. However, my read suggests little basis to relate high AI stock prices to Fed policy. Most of the minutes focused on measures of inflation, the unemployment rate, and the state of the economy, according to the official January 2024 release from the Federal Open Market Committee .

To be sure, the January minutes did mention stock prices. “Broad equity prices reached new highs over the intermeeting period, but they were driven mostly by the strong gains of large-capitalization technology companies; broader measures of equity valuations were more subdued,” the meeting noted.

In my view, Yardeni’s conclusion rests on shaky ground. He appears to assume the current Fed views the AI stock boom the same way the central bank saw the dot-com boom in 1996.

How so? Powell “has to be concerned about irrational exuberance and fueling it” with rate cuts, Yardeni told IBD, using Greenspan’s famous phrase from 1996 as Internet stocks were taking off.

How Jerome Powell’s Fed Differs From Alan Greenspan’s

Fed Chair Jerome Powell does not take the same approach as Fed Chair that Greenspan did. For example, the two have very different approaches when it comes to communicating with the public about monetary policy.

Greenspan was famously opaque — issuing oracular pronouncements that confused markets. As Fed chair from 1987 to 2006, he crafted his monetary policy statements “to be vague and obscure so that he could avoid roiling financial markets,” according to a 2022 report from The Federal Reserve Bank of Richmond .

While Greenspan did not share these concerns with the public, transcripts released after he left the Fed revealed Greenspan was “obsessed with stock prices.” That’s according to IBD ’s analysis of Fed documents from 1998 and 1999, where he was “expecting dot-com stocks to fall.”

By contrast, Powell is far more explicit about how the Fed sets interest rate policy. He holds a press conference after every FOMC meeting, and “the committee issues a post-meeting statement explaining both its current policy stance as well as how it expects policy to evolve in the future,” according to the Richmond Fed.

Powell has taken an orthodox approach to Fed policy that excludes stock prices. “We’ve got a maximum-employment mandate and a price-stability mandate, and those are the two things we look at,” Powell has said according to IBD .

Simply put — just because Greenspan disguised his thinking, that does not mean Powell is doing the same.

Why The Dot-Com Boom Was Much Different Than The Generative AI One

Yardeni’s shaky conclusion includes a failure to define what constitutes an AI stock or to compare the AI and dot-com booms.

Defining AI Stocks

Yardeni seems to be equating AI stocks with the large capitalization technology companies — such as Amazon, Apple, Google, Meta, Microsoft, and Nvidia — cited in the January Fed minutes.

If that is what he means by AI stocks, only one of those companies — Nvidia — clearly reports significant revenue resulting from AI-driven demand for its products. Other large capitalization technology stocks — such as Meta and Microsoft — offer mere hints at a revenue boost from AI.

In my view there are more publicly traded stocks benefiting from demand for generative AI. As I wrote in my new book, Brain Rush , the generative AI ecosystem consists of four broad industry segments: consulting, software, cloud services, and hardware.

From a sample of publicly traded companies in each sector, my generative AI stock index, detailed in a June 2024 Forbes post, outperformed the Nasdaq in 2023. (I have since added market researcher Gartner — bringing the total number of companies in the index to 20). However, by August 23, the Nasdaq had caught up as some AI stocks lost some ground between March and August.

Here are the key numbers:

  • 2023: Generative AI stock index rose 86% — twice the Nasdaq’s rate of increase.
  • 2024 as of August 23: Generative AI stock index rose 21% — matching the Nasdaq’s performance.

Why The Dot-Com And Generative AI Booms Differ

A key difference between the generative AI and dot-com booms is the number of initial public offerings. During the dot-com boom, 2,888 Internet startups went public compared to zero generative AI IPOs so far, according to a March 2024 Forbes column.

The difference between the number of IPOs is due to more than generative AI’s relatively early stage of development.

Whereas most established companies during the 1990s hoped the internet would go away so they would not have to change their business models, the generative AI boom is being driven by the largest technology companies — notably Amazon, Google, and Microsoft — as they look to boost demand for their cloud services.

Microsoft has invested $13 billion in ChatGPT provider, OpenAI — much of which is a credit for the AI chatbot developer to use the software giant’s Azure cloud service.

In researching Brain Rush , I talked to many technology executives and enterprises expressing fear of being left behind the generative AI wave. While an estimated $150 billion will be spent on AI capital expenditures in 2024, according to Sequoia Capital, boards of directors are terrified of the potential legal costs of AI hallucinations.

That conflict between AI FOMO and fear of hallucinations could make it difficult for companies to earn a return on their investment, noted a July 2024 Forbes post.

In short, the dot-com and generative AI bubbles appear very different. What’s more, Yardeni’s conflation of Greenspan’s fear of a dot-com stock bubble and Powell’s wielding of Fed policy to keep the generative AI bubble from bursting strikes me as unfounded.

Could Yardeni be imagining corrections he would advise a Fed chair to make? Powell “is a student of history and has surely been studying the Greenspan Fed’s dot-com bubble experience,” Yardeni told IBD .

How A Rate Cut Will Affect Generative AI Stock Prices

With the market expecting the Fed to cut interest rates in September, will the actual cuts affect the generative AI stock index?

The answer in the short term depends on what bets traders are making. Institutional investors could be trading based on estimates of how much the Fed will cut interest rates.

If those bets are too optimistic — assuming, say, a 0.5% cut in the Fed Funds rate — a 0.25% cut could send technology stocks down. That’s because if lenders forced the institutions to cover their overly optimistic interest rate bets, they might raise the capital by selling profitable positions — such as bets on technology stocks.

However, over the long run, interest rates are a sideshow for generative AI stocks.

Simply put, the AI stock boom hinges heavily on what happens August 28 — when Nvidia releases its latest earnings report.

Unless the company beats expectations and raises its guidance, the GPU-designer’s stock could tank and so could the shares of other companies in the generative AI stock index.

There is one possible long-term positive effect of Fed rate cuts for the generative AI ecosystem. The IPO market has been silenced since November 2021 when word leaked of Powell’s reappointment to fight inflation.

If the IPO market reopens due to anticipated interest rate cuts, generative AI startups could go public. If those companies post-IPO market performance is strong, generative AI could enjoy a more robust, dot-com-like boom.

If that happened, it would be a byproduct of rate cuts aimed at keeping the unemployment rate from spiking now that the Fed has gotten inflation under control.

Peter Cohan

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