Stable diffusion and flux have been able to to this for months actually. One example.

https://civitai.com/models/692955/flux-ghibli-style

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Can it transform existing images?

💯

Its a step beyond what ChatGPT can do, image to image, in drawing, image to prompt, time of features. Tagged some setup, but worth it.

An easy way to get setup.

https://github.com/easydiffusion/easydiffusion

*tons of features