You can create embroidery designs from both bitmap (JPEG, TIFF) or vector (SVG, AI) sources, but vectors are always preferred choice. Nevertheless, you can find several embroidery software that have innate "digitizing" function that allows users to use raster graphics as template for the embroidery and thus basically perform tiff to hus conversion. This function works best with simple geometric shapes and poorly with photographs.
Updated: July 14, 2022