AutoPunch is embroidery software that you can purchase. It often comes with Singer Futura and similar Singer models. It can automatically digitize simple pictures. It is not the same quality as manual digitizing. It can read all formats and change formats as well. You must purchase Crossstitch, Photo-stitch, and Editor seperate.
Recently one of the Cute digitizers (I think it was mops ??) showed us the difference in pictures between auto-digitizing and manual. If someone can find that post, it explains perfectly.

Auto punch embroidery is a myth. lol. You can get software that claims to turn pictures into stitches but the reality is that you don't get good results. A good design needs to be thought out and stitches applied manually or manually edited to produce quality embroidery. It is usually easier to start manually than to use auto digitizing.

I re-read my post. I wish I could edit for clarity, content and spelling...
You can purchase software called "AutoPunch" it can "read" any embroidery format and change formats if desired. It works on simple pictures of clipart. You can do some customization of the stitches. It is however a very basic program and not user friendly for detailed customization.
I have attached the link where mops shows us the difference in pictures of digitized clipart.
"Pictures are worth a thousand words"

It came with one of my singer machines and it was terrible i only tryed a couple of times i found it was a dumb program (sorry) carolyn

thanks to all who answered. I just read the info from mops and understand it now.