Adobe's (ADBE) Photoshop Launch Boosts Digital Media Segment
Adobe ADBE launched Photoshop’s web version, which is available via Firefly-powered AI tools, generative expand and generative fill.
Previously, these Firefly features were only available on the beta version of Photoshop. Now, they will be available on the web version of Photoshop for paid users.
Notably, the web toolbar grouping tools are based on image reproduction or object selection workflows, providing full names for beginners instead of tooltip descriptions.
Further, the new launch enables file collaboration through sharing links, even without subscriptions, and provides a web version with desktop tools like the contextual taskbar for workflow suggestions.
We note that Adobe's Photoshop, which is a popular editing tool, is expected to aid the company in gaining strong customer momentum on the heels of new generative AI capabilities.
Digital Media Segment in Focus
The latest move is in sync with Adobe’s growing efforts to enrich its Digital Media segment with generative AI technology.
Apart from Photoshop’s web version, the company recently announced commercial release of its family of creative generative AI models, Firefly, which offers over 100 languages of text prompts, enables content creators to make multiple changes, creates infinite variations, and enhances image generation capabilities.
Further, Adobe introduced AI-powered Creative Cloud, including its generative AI capabilities in Photoshop and Illustrator, Adobe Express Premium, Adobe Firefly web application, Premiere Pro and After Effects, enhancing creative power for users.
It also launched GenStudio, which streamlines content creation, production and activation across Creative Cloud, Firefly, Express, and Experience Cloud. This, in turn, enhances the content supply chain through real-time collaboration and quick content creation for marketing and creative departments.
All the above-mentioned endeavors will likely aid Adobe in gaining a strong footing in the global generative AI market.
Per a Fortune Business Insights report, the global generative AI market size is expected to hit $43.87 billion in 2023 and reach $667.96 billion by 2030, indicating a CAGR of 47.5% between 2023 and 2030.
Moreover, these efforts will likely aid the performance of the Digital Media segment in the upcoming period.
For third-quarter fiscal 2023, the Digital Media segment generated revenues of $3.59 billion, which rose 11% on a year-over-year basis.
Adobe expects fourth-quarter fiscal 2023 Digital Media revenues between $3.67 billion and $3.70 billion.
Strength in the underlined segment will likely contribute to its overall financial performance in the near term.
For fourth-quarter fiscal 2023, Adobe projects total revenues between $4.975 billion and $5.025 billion.
Stiff Competition
Adobe’s growing generative-AI efforts are expected to aid its competitive position against companies like Microsoft MSFT, Alphabet GOOGL, and Amazon AMZN, which are also making strong efforts to gain a solid footing in the generative AI space.
Microsoft, which has taken the world by storm on the back of ChatGPT, is gaining on the integration of OpenAI’s next-generation LLM — GPT-4 — into its search engine Bing and browser Edge.
Further, Microsoft recently announced OpenAI's DALL-E 3 AI image-synthesis model, which is fully integrated with ChatGPT, enhancing complex descriptions and text generation, and plans to integrate it into Bing Chat for direct image creation.
Meanwhile, Alphabet’s Google is enjoying the growing momentum of its chatbot Bard by integrating it with Google apps to introduce new features like English extensions, double-checking responses, and modifying responses to over 40 languages.
Further, Alphabet is set to launch Gemini, a conversational multimodal AI software that offers chatbot optimization, text summarization, content generation, email drafts, music lyrics and news articles.
Amazon, on the other hand, is riding on its AI-powered solution, Amazon Bedrock, which is designed to accelerate the deployment of generative AI-backed foundation models (FM). Also, Bedrock provides access to FMs of Amazon Titan, a ChatGPT rival.
Additionally, Amazon Web Services has introduced five AI innovations to enhance employee productivity and business transformation. These include Amazon Bedrock, Amazon Titan Embeddings and Llama 2, as well as a new capability for Amazon CodeWhisperer.
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