Adobe is actively deploying in the field of artificial intelligence, and its Firefly AI platform has achieved remarkable success and has generated more than 16 billion pieces of content. Based on this, Adobe plans to launch a high-end AI video generation function early next year. This function is currently in a limited public testing phase and has significantly increased the number of Premiere Pro beta users. Adobe is integrating AI technology into its Creative Cloud product and plans to create new pricing tiers to reflect the power of AI-driven video creation. Its AI strategy covers image, vector design and video functions, and has been integrated into flagship applications such as Photoshop and Premiere Pro. It is also actively expanding enterprise-level applications, such as cooperation with PepsiCo and Tapestry.
During its December 11 earnings call, Adobe reported strong quarterly and annual revenue growth numbers and highlighted the commercial security, strong control and seamless integration of its AI technology with existing products. Additionally, Adobe announced a global program to help 30 million next-generation learners improve their AI literacy and monetize AI technology through premium features, enterprise services, and AI assistants integrated into their product suites. . Adobe emphasizes that its AI development will always focus on business security and user control, and is committed to providing high-quality and easy-to-use AI tools.
"Video generation is a higher value activity than image generation," said David Wadhwani, president of Adobe Digital Media. The company plans to use the technology to create new pricing tiers within its Creative Cloud offering to reflect AI Powerful capabilities for driven video creation.
Wadhwani emphasized that Adobe's AI implementation has three distinctive features: "First, the way we train models is commercially safe. Second, we build strong control into the models. Third, we integrate these models into our products.”
Adobe reported revenue of $5.61 billion in the fourth quarter ended November 29, a year-on-year increase of 11%. In fiscal year 2024, the company achieved record revenue of US$21.51 billion, an increase from US$19.42 billion in the previous fiscal year. The company reported a record operating cash flow of $2.92 billion in the quarter and a record remaining performance obligation (RPO) of $19.96 billion, a year-over-year increase of 16%.
PYMNTS previously reported that Adobe launched an AI video creation tool in October that specifically addresses copyright issues by using licensed content. In 2024, nearly 700 AI-related bills were proposed in U.S. state legislatures, with Colorado passing comprehensive legislation, while California took a more cautious approach and vetoed some proposals.
Firefly lights up the product portfolio
Adobe's AI strategy spans its entire product portfolio. Its Firefly AI model family now includes image, vector design and video capabilities. The tools are integrated into Adobe's flagship applications, including Photoshop, Premiere Pro and the company's web platform, Express.
Adobe's AI technology is particularly strong in enterprise applications. Through its Firefly service, PepsiCo allows customers to personalize Gatorade merchandise, while Tapestry uses the technology for large-scale content production. Adobe is further integrating these capabilities with Gen Studio, a new product that combines creative tools with marketing and content management capabilities to help enterprises scale content production.
"Firefly's integration in flagship applications across Creative Cloud, Document Cloud and Experience Cloud is driving record growth in customer adoption and usage," said Shantanu Narayen, Chairman and CEO of Adobe. "Firefly-powered adoption across our tools Content has been generated more than 16 billion times, with records set every month this past quarter.”
In terms of document productivity, usage of Adobe's Acrobat AI assistant doubled month-on-month. The tool helps users analyze and process PDF documents and has shown improvements in productivity, with studies showing that users complete document-related tasks an average of four times faster. The AI assistant is now available on desktop, web and mobile platforms, as well as Edge Chrome and Microsoft Teams extensions.
Pay attention to developer education
In addition to business applications, Adobe also announced a global program to help 30 million next-generation learners develop AI literacy, content creation, and digital marketing skills using Adobe Express. The program involves partnering with educational institutions, schools, nonprofits and online learning platforms to provide training, certification and career development pathways.
Adobe's approach to AI monetization includes three main channels: upcoming advanced features like video generation, enterprise services through Firefly, and AI assistants integrated into its product suite. Adobe aims to introduce advanced AI capabilities to professional users and enterprises while expanding the market with easy-to-use tools.
"Our highly differentiated technology platform, rapid pace of innovation, diversified go-to-market strategies and integration of cloud products have laid a solid foundation for our growth in the year ahead," Narayen said.
Adobe said that while accelerating AI development, it will continue to focus on business security and user control. The company's Firefly model is designed to ensure commercial security for creative content and provide what Adobe calls "unprecedented output quality and user control" within its applications.
All in all, Adobe's AI strategy is advancing steadily. The success of its Firefly platform and its investment in video generation technology indicate that Adobe will continue to remain competitive in the AI field and bring more innovative tools and solutions to creative professionals and enterprises. plan. Adobe's future development is worth looking forward to.