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Bloomberg Businessweek

Adobe Drops After Tepid Outlook Stokes AI Disruption Fears

Dec 12, 2024
Anil Chakravarthy, President of Digital Experience Business at Adobe, shares insights on the company's disappointing sales outlook and concerns about AI disruption. He discusses Adobe's AI strategy and potential impacts on their market position. Frances Katzen, Founder of The Katzen Team at Douglas Elliman, provides a deep dive into the New York City real estate market, reflecting on recent arrests and the challenges they pose to the industry. Together, they explore the future of tech and real estate amid evolving landscapes.
28:29

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Quick takeaways

  • Adobe's incorporation of generative AI, exemplified by Firefly, significantly enhances user experience and positions the company competitively against emerging startups.
  • Concerns over Adobe's growth potential amidst rising competition highlight the need for a delicate balance between AI adoption and revenue generation strategies.

Deep dives

Adobe's Strategic Positioning in the AI Landscape

Adobe has reported strong financial results, indicating solid positioning in the competitive landscape of digital media and experience. With a record net new digital media annual recurring revenue of $578 million in Q4, the company has successfully integrated generative AI capabilities into its products, like Firefly, which has generated over 16 billion creations. This positions Adobe favorably against emerging AI-based competitors, as they focus on providing safe and innovative AI-driven solutions for enterprises. The company's confidence in its growth prospects stems from its robust customer base and proactive approach to leveraging AI technologies for marketing and creative needs.

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