New in Photoshop Elements 2026, Adobe introduces powerful new Generative AI tools that make creating and enhancing images easier and more intuitive than ever. Whether you're removing distractions, extending backgrounds, or adding entirely new elements to a photo, these smart features help you bring your creative vision to life with just a few clicks.

Generative Credits - Photoshop Elements 2026 comes with 25 Generative Credits a month. That basically means that you can use the AI tools 25 times per month for no cost. If you need more than that then you will need to get a subscription to Adobe Firefly. The lowest cost for that is about $10 a month and comes with 2000 credits, along with a lot of other features in Adobe Firefly.

Insert Object: This AI tool will insert an object or content into an existing picture. Find this tool in the Edit menu or in the Tools Panel just above the color picker, it is the right side button. This is great for doing fun stuff like adding a plant or a bird into a photo. It is also the tool you will use when you want to remove something from a picture, basically inserting other background imagery to hide what you want removed. One great use of this tool is to extend a photo, first use Canvas Size to add more area around a picture then use Insert Object to insert new background information into that extended area.

To use this tool: Use the selection brush to mark out the area you want the image to be placed. The slider control allows you to adjust the size of the brush. You can also make a selection first using any of the standard selection tools and techniques in Photoshop Elements to create your selection. You don't need to be super accurate with the selection, the AI tool will find the edge, but as always the better the selection the better the results. If using the AI selection brush I like to outline the area first then fill in the area with the brush. Once your area is selected they type in a prompt of what you want to see in that area. If the background is grass and trees and you are removing a person just type in "grass and trees" into the prompt box. Then click the Generate button.

You will need a currently active internet connection for this as it is run on the Adobe servers and not locally on your computer. Photoshop Elements will give you 4 choices to choose from. Select which choice you like the best and that will be placed as a new smart object layer into your project. The whole cleaned up image comes in as a new layer, not just a layer with the fixed area. That will cost 1 Generative credit. There is a button right below the Generate button that will show you how many credits you have available. If you made a mistake in your prompt and you try again, that will cost another credit.

If  you want to add in some new imagery into the fixed photo just do the Insert Object again, it will cost you another credit. Or you can try to get everything you want in the first pass with a more complex starting prompt.

Generate Image:  This AI tool creates new imagery from a prompt. Great for creating completely new picture or new backgrounds for use in a project. Find this tool in the Edit menu or in the Tools Panel just above the color picker, it is the left side button. 

To use this tool: Type in a description of what you would like to see in your image, don't type in directions, just type in a description of what you want. For instance if you want a picture of a blue bird type in "a blue bird sitting in a tree" instead of "give me a picture of a blue bird in a tree". The more specific you are with your prompt the more control you will have over the final image. Next to the prompt box is a drop down list with Auto, Photo, and Art. I like choosing either Photo or Art to prevent PSE from making the wrong choice in the Auto setting. Then click the Generate button.

You will need a currently active internet connection for this as it is run on the Adobe servers and not locally on your computer. Photoshop Elements will give you 4 choices to choose from. Select which choice you like the best and that will be placed as a new smart object layer into your project. That will cost 1 Generative credit. There is a button right below the Generate button that will show you how many credits you have available. If you made a mistake in your prompt and you try again, that will cost another credit.