Prisma Magic Avatars is a feature within the Prisma app that generates AI-enhanced avatars from user-uploaded photos. It uses neural networks to apply artistic filters and transformations, creating digital portraits in various styles like cartoon, sketch, or painting. The Magic Avatars feature aims to provide users with creative and unique visuals for social media profiles, digital art, or personal branding. Prisma is known for its innovative approach to photo editing and style transfer.