Interactive elements in a Power BI dashboard can be created using slicers, filters, and drill-down options. Slicers allow users to segment data based on specific categories, like regions or products. Filters provide additional customization by enabling users to select data subsets. Drill-down options allow for deeper insights by letting users click on data points to view underlying details. These interactive features in Power BI dashboard make the analysis more dynamic, as users can explore the data from different perspectives, making it easier to uncover insights without navigating away from the dashboard.