What are some potential challenges when working with image generation in PHP?

One potential challenge when working with image generation in PHP is ensuring that the necessary PHP extensions are installed and enabled on the server. This includes extensions like GD or Imagick, which are commonly used for image manipulation. If these extensions are not available, it can limit the capabilities of image generation in PHP.

// Check if the GD extension is installed and enabled
if (!extension_loaded('gd')) {
    die('GD extension is not installed or enabled. Please install or enable the GD extension.');
}
```

Another challenge is handling errors or exceptions that may occur during image generation, such as file not found errors or memory limit exceeded errors. It's important to implement proper error handling to gracefully handle these situations and provide meaningful feedback to the user.

```php
// Set error handling for image generation
try {
    // Image generation code here
} catch (Exception $e) {
    echo 'An error occurred: ' . $e->getMessage();
}