Adobe (ADBE) made headlines on Monday by launching a groundbreaking service called Adobe AI Foundry, empowering businesses to design custom generative AI models tailored specifically for their brand using their own media assets. Following this announcement, Adobe’s stock saw a notable increase, rising 2.5% to reach a midday trading price of $341.55.
With Adobe AI Foundry, organizations can create bespoke AI models that utilize their comprehensive range of existing intellectual property, including images, videos, audio, and graphics. Adobe emphasized that these models are not only personalized to a company’s assets but also are safeguarded by intellectual property protections. The service aims to enhance the productivity of creative teams by enabling them to generate on-brand content at scale.
Notable early adopters of Adobe AI Foundry include prominent companies such as Home Depot (HD) and Walt Disney Imagineering (DIS). Home Depot’s Chief Marketing Officer, Molly Battin, expressed enthusiasm about the initiative, stating, “Adobe’s AI Foundry represents an exciting step forward in embracing cutting-edge technologies to deepen customer engagement and deliver impactful content across our digital channels.”
Despite the positive launch, Adobe has faced challenges, with its stock being affected by concerns regarding competition from rivals in the generative AI space, such as Alphabet’s Google and OpenAI, which could potentially overshadow its creative software business. Year-to-date, Adobe’s stock had experienced a 25% decline by last Friday’s close. Additionally, the company ranks fifth out of six in its industry group according to IBD’s stock checkup and has a Composite Rating of 56 out of 99, indicating it has been underperforming relative to its peers.
Adobe AI Foundry is positioned as a solution to some of the most complex challenges in content and media production today, as highlighted by Hannah Elsakr, Vice President of GenAI New Business Ventures at Adobe. “Our expert team and enterprise-grade bespoke models provide a secure creative foundation that enables companies to scale on-brand content and stay competitive in the attention economy,” she stated.
As the market adjusts to this new offering, Adobe’s innovations may not only enhance its position in the competitive landscape but also inspire confidence among investors looking for cutting-edge solutions in the technology sector.