Adobe faces investor doubts amid AI disruption
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Adobe is facing skepticism about its ability to compete in the creative market with AI products disrupting it. The lack of confidence is despite efforts by Adobe to integrate rival AI models into its products. Adobe Inc. is trying to prove it can remain a key player in the creative industry as artificial intelligence changes how people make content. The company gathered about 10,000 marketers, filmmakers, and creators at its annual conference this week to highlight how its software is adapting to the AI era. Adobe is attempting to retain investor confidence Many on Wall Street are unsure if Adobe can maintain its dominance as new AI-powered tools make it easier for people to create videos, posters, and graphics without professional software. Citigroup analyst Tyler Radke warned that Adobe is “at risk of structural AI-driven competitive and pricing pressure,” even though the company has a strong strategy. The company’s shares have lost roughly a quarter of their value this year. Other software firms like Salesforce Inc. and Workday Inc.’s stock prices have also struggled. Many of the popular AI tools used for creating videos and images, such as OpenAI’s Sora or Google’s Veo, are made outside Adobe’s ecosystem. Consumer-focused platforms like Canva are also growing in popularity, allowing people to design without needing Adobe’s professional software. Bloomberg’s analyst estimates suggest Adobe’s Digital Media revenue growth will slow over the next few years. Despite this, analysts like Kirk Materne from Evercore ISI described Adobe’s recent move as “another step toward addressing the ‘existential risk’ question” about the effect of generative AI on its business. Adobe’s strategy At the conference in Los Angeles, Adobe introduced several new features aimed at keeping AI-focused creators within its platform. One of the biggest additions is of AI models from competitors like Google and OpenAI into…
Filed under: News - @ November 1, 2025 7:23 am