Can the AI see my photos?

Yes. In AI Chat the AI sees up to 4 photos per message, plus the conversation's latest render, and describes materials, style, light and colors or gives you recommendations. It's free, although on the free plan it counts toward the 10 messages every 5 hours.

For the AI to write a complete prompt from a photo, use Auto-prompt — in the chat or in Canvas AI — or the Image scanner in Nodes: it asks for the time of day and the weather first, and it's for paid plans.