Lunacy is a free graphic design software with built-in AI features for creating UI/UX designs, illustrations, and marketing graphics. It's compatible with Sketch files and offers AI-powered tools to accelerate the design process.

Key Features:

• AI Image Generation: Generate custom images and illustrations with text prompts
• Background Removal: Automatically remove backgrounds from images
• AI Upscaling: Enhance image resolution without quality loss
• Smart Layout: Automatic spacing and alignment suggestions
• Sketch Compatibility: Open and edit Sketch files natively
• Built-in Graphics: Access millions of photos, icons, and illustrations
• Vector Tools: Professional vector editing capabilities
• Prototyping: Create interactive prototypes for user testing
• Auto Layout: Responsive design with automatic component resizing
• Cloud Storage: Save and sync designs across devices
• Team Collaboration: Share designs and get feedback
• Export Options: Export in multiple formats including SVG, PNG, PDF

Pricing: Lunacy is completely free with unlimited access to all features including AI tools. No subscription or payment required.

Alternatives:

• Figma - Collaborative design platform with AI features
• Canva - User-friendly design tool with AI generation
• Adobe Firefly - AI-powered creative tools from Adobe
• Sketch - Professional UI/UX design tool for Mac