Adobe is significantly expanding its artificial intelligence (AI) footprint by introducing a brand new high-end video generation feature, building on the tremendous success of the Firefly AI platform. According to the company, the Firefly platform has generated over 16 billion pieces of content since its launch, demonstrating its substantial impact.
During the fourth-quarter earnings call on December 11 (Wednesday), Adobe announced plans to launch AI video generation capabilities as a premium service early next year. Currently, this feature is in a limited public testing phase but has already driven a 70% increase in the number of users testing Premiere Pro.
David Wadhwani, President of Adobe Digital Media, stated, “Video generation is a more valuable activity than image generation.” The company plans to leverage this technology to create new pricing tiers in its Creative Cloud products, reflecting the powerful capabilities of AI-driven video creation.
Wadhwani emphasized that Adobe's AI implementation has three notable characteristics: “First, the way we train our models is commercially secure. Second, we integrate strong controls into the models. Third, we embed these models into our products.”
Adobe reported fourth-quarter revenue of $5.61 billion as of November 29, representing an 11% year-over-year increase. For the fiscal year 2024, the company achieved record revenue of $21.51 billion, up from $19.42 billion in the previous fiscal year. The company reported record operating cash flow of $2.92 billion for the quarter, with remaining performance obligations (RPO) reaching a record $19.96 billion, a 16% increase year-over-year.
PYMNTS previously reported that Adobe launched an AI video creation tool in October, specifically addressing copyright issues through the use of licensed content. In 2024, nearly 700 AI-related bills were proposed in state legislatures across the U.S., with Colorado passing comprehensive legislation, while California took a more cautious approach, rejecting some proposals.
Firefly Enhances the Product Portfolio
Adobe's AI strategy spans its entire product portfolio. The Firefly AI model series now includes image, vector design, and video capabilities. These tools have been integrated into Adobe's flagship applications, including Photoshop, Premiere Pro, and the company’s web platform, Express.
Adobe's AI technology is particularly strong in enterprise applications. Through Firefly services, PepsiCo allows customers to personalize Gatorade products, while Tapestry leverages this technology for large-scale content production. Adobe further integrates these capabilities through Gen Studio, a new product that combines creative tools with marketing and content management functions to help businesses scale content production.
Adobe Chairman and CEO Shantanu Narayen stated, “The integration of Firefly into the flagship applications of Creative Cloud, Document Cloud, and Experience Cloud is driving record growth in customer adoption and usage. The amount of content generated by Firefly in our tools has surpassed 16 billion instances, and records have been broken every month in the past quarter.”
In terms of document productivity, the usage of Adobe's Acrobat AI assistant has doubled quarter-over-quarter. This tool helps users analyze and process PDF documents and has shown improvements in productivity, with research indicating that users complete document-related tasks four times faster on average. The AI assistant is now available on desktop, web, and mobile platforms, as well as in Edge Chrome and Microsoft Teams extensions.
Focus on Developer Education
In addition to commercial applications, Adobe announced a global initiative aimed at helping 30 million next-generation learners develop AI literacy, content creation, and digital marketing skills using Adobe Express. This program involves partnerships with educational institutions, schools, non-profits, and online learning platforms to provide training, certification, and career development pathways.
Adobe's AI monetization approach includes three main channels: upcoming premium features like video generation, enterprise services provided through Firefly, and AI assistants integrated into its product suite. Adobe aims to introduce advanced AI capabilities for professional users and enterprises while expanding the market with user-friendly tools.
Narayen stated, “Our highly differentiated technology platform, rapid pace of innovation, diverse go-to-market strategies, and integration of cloud products lay a solid foundation for our development in the coming year.”
Adobe stated that while accelerating AI development, it will continue to focus on commercial security and user control. The company's Firefly models are specifically designed to ensure the commercial safety of creative content and provide what Adobe describes as “unprecedented output quality and user control” within its applications.
