Adobe Struggles To Assure Investors That It Can Thrive in AI Era

An anonymous reader shares a report: Adobe brought together 10,000 marketers, filmmakers and content creators to its annual conference this week to persuade them that the company's software products are adapting to AI and remain the best tools for their work. But it's Adobe's investors, rather than its users, who are the most skeptical that generative AI technology won't disrupt the company's business as the top seller of software for creative professionals.

Despite a strong strategy, Adobe is 'at risk of structural AI-driven competitive and pricing pressure,' wrote Tyler Radke, an analyst at Citigroup. The company's shares have lost about a quarter of their value this year as AI tools like Google's video-generating model Veo have gained steam. In an interview with Bloomberg Television earlier this week, Adobe Chief Executive Officer Shantanu Narayen said the company is undervalued as the market is focused on semiconductors and the training of AI models.

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