Adobe Illustrator supports applying rounded edges to a picture -- but not in a single step -- so there's no filter that can perform the task for you. In a few steps, however, you can create the illusion that a picture's edges are rounded with a mask. You must draw the shape you would like for this mask and define how round the rectangle's corners will be. Be sure the shape you create for a mask complements the contents of your picture.
Step 1
Select "File" and "Place" to import a picture into Adobe Illustrator.
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Step 2
Choose the Rectangle tool and click on the top left corner of the photo. A Rectangle tool dialog box should appear.
Step 3
Specify the rectangle's size and corner radius and click OK. A rectangle with rounded edges should be in view.
Step 4
Drag the bounding box handles with the Selection tool to adjust rounded corner rectangle's width and height if necessary.
Step 5
Select the rounded edge rectangle and the photo with the Selection tool.
Step 6
Choose "Object" and "Clipping Mask," then select "Make" to convert the rectangle and the photo below it into a clipping set. The rectangle's shape masks the photograph and a picture with rounded edges should be in view.
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