What potential issues can arise when dynamically generating images in PHP?

One potential issue that can arise when dynamically generating images in PHP is memory consumption. If a large number of images are being generated at once, it can lead to high memory usage and potentially crash the server. To solve this issue, you can free up memory by using the `imagedestroy()` function to destroy the image resource after it has been outputted or saved.

// Generate image
$image = imagecreate(200, 200);
$bgColor = imagecolorallocate($image, 255, 255, 255);
$textColor = imagecolorallocate($image, 0, 0, 0);
imagestring($image, 4, 50, 50, 'Dynamic Image', $textColor);

// Output image
header('Content-Type: image/png');
imagepng($image);

// Free up memory
imagedestroy($image);