As part of its Ignite conference, Microsoft unveiled a new AI-powered tool dubbed Microsoft Designer that converts text prompts into images. The graphic design app is integrated with OpenAI's DALL-E 2 AI software.

Microsoft Designer can generate designs for postcards, presentations, logos, invitations, posters, graphics, social media posts, and other graphic design products.

According to CNBC, Designer is even set to become an alternative to the Canva web app, which now has more than 100 million monthly active users.

For now, Microsoft Designer is in early access, and users can now join a waiting list for the free web preview of the app. Once the app becomes generally available, Microsoft will keep the standalone free version as well as provide a more feature-filled version for Microsoft 365 Personal and Microsoft 365 Family subscribers.

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Microsoft is initially targeting consumers with its Designer software, but the app could also prove useful for employees of companies, government agencies and schools, where Microsoft has a large user base. Microsoft could also expand Designer to additional markets, including businesses, CNBS notes.

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Microsoft is also adding an AI text-to-image model to Bing, its search engine. Users can generate images using the Image Creator tool in Bing search, as it is powered by the same AI as Designer. It can be accessed through Microsoft's search engine or the Image Creator icon in the sidebar within Edge.