Fli Dog is an AI-powered Photoshop editor that offers features like inpainting and outpainting, text-to-image functionality, and modification of image libraries with select finetuning options. It has four different power AI connectors, three stable diffus options, and a cloud fallback for stability. The tool requires a local installation and a decent Nvidia graphics card. Fli Dog promises to boost efficiency and improve workflow for Photoshop users, providing a range of features to make image editing quicker and more effective.