Dive Brief:
- Photoshop and Acrobat maker Adobe is leaning further into its aggressive artificial intelligence deployment strategy after giving the technology much of the credit for a strong quarterly earnings report last month.
- The company on Tuesday said it has added AI enhancements to several products, including GenStudio, used by enterprises for managing marketing content. GenStudio has been equipped with new generative AI and agentic AI capabilities, according to a press release.
- “GenStudio simplifies one of the most pressing challenges facing creative and marketing teams today, where an insatiable demand for content is outpacing organizational resources,” the release said.
Dive Insight:
Adobe has been focused on infusing AI across its entire suite of product offerings.
The latest announcement comes after the company reported better-than-expected financial results for its fiscal quarter third ended Aug. 29, while raising its guidance for the full year.
The software provider generated $5.99 billion in revenues during the quarter, a year-over-year increase of 11%, with net income rising to $1.77 billion, up from $1.68 billion a year earlier, according to results released on Sept. 11.
Adobe increased its full-year revenue guidance to a range of $23.65 billion to $23.70 billion, up from its previous estimate of $23.50 billion to $23.60 billion.
“AI represents a tectonic technology shift and presents the biggest opportunity for Adobe in decades,” Adobe CEO Shantanu Narayen said during an earnings call at the time.
New “AI-first products” such as Firefly, Acrobat AI Assistant and GenStudio have already achieved the company’s end-of-year annual recurring revenue target of over $250 million, CFO Daniel Durn said during the call.
Over 40% of Adobe’s top 50 enterprise customers doubled their annualized recurring revenue spend since the start of fiscal year 2023, the company said in a Sept. 11 press release.
Brands including IBM, Qualcomm, The Coca-Cola Company, The Estée Lauder Companies, Lumen Technologies, The National Football League and Prudential Financial have been working with Adobe AI-powered offerings such as Firefly and GenStudio “to shorten the time it takes to launch campaigns and engage new audiences,” according to the release.
“By expanding our use of Adobe AI, we’ve unlocked new levels of productivity and efficiency,” Jonathan Adashek, senior vice president of marketing and communications for IBM, said in the release, adding that Adobe Firefly in particular has helped his company to slash content costs by 80% and reduce the time it takes to generate ideas.
