Adobe is expanding its artificial intelligence (AI) strategy with new premium video generation capabilities as the company builds on the success of its Firefly AI platform, which the company said has generated more than 16 billion pieces of content since launch.
During its fourth-quarter earnings call on Wednesday (Dec. 11), Adobe revealed plans to introduce AI video generation as a premium offering early next year. Currently in limited public beta, the video generation feature has already driven a 70% increase in Premiere Pro beta users.
“Video generation is a much higher value activity than image generation,” said David Wadhwani, president of digital media at Adobe. The company plans to leverage this technology to create new pricing tiers in its Creative Cloud offerings, reflecting the advanced capabilities of AI-powered video creation.
Adobe’s AI implementation distinguishes itself through three features, according to Wadhwani: “One is commercially safe, the way we train the models. Two is the incredible control we bake into the models, and three is the integration that we make with these models into our products.”
Adobe reported revenue of $5.61 billion for its fourth quarter ended Nov. 29, up 11% year over year. For fiscal year 2024, the company achieved a record revenue of $21.51 billion, up year over year from $19.42 billion. The company reported record operating cash flows of $2.92 billion for the quarter and record RPO of $19.96 billion, representing 16% year-over-year growth.
PYMNTS previously reported that Adobe launched a AI video creation tool in October that specifically addresses copyright concerns by using licensed content. Nearly 700 AI-related bills were introduced in state legislatures in 2024, with Colorado passing comprehensive legislation while California took a more measured approach by vetoing certain proposals.
The company’s AI strategy spans across its entire product portfolio. Its Firefly family of AI models now includes imaging, vector design and video capabilities. These tools are integrated into Adobe’s flagship applications, including Photoshop, Premiere Pro, and the company’s web-based Express platform.
Enterprise adoption of Adobe’s AI technology has been particularly strong. Through Firefly services, PepsiCo is enabling customers to personalize Gatorade merchandise, while Tapestry is using the technology for scaled content production. Adobe is further integrating these capabilities through Gen Studio, a new offering that combines creative tools with marketing and content management features to help organizations scale their content production.
“The integration of Firefly across our flagship applications in Creative Cloud, Document Cloud and Experience Cloud is driving record customer adoption and usage,” said Shantanu Narayen, chair and CEO of Adobe. “Firefly-powered generations across our tools surpassed 16 billion, with every month this past quarter setting a new record.”
In the document productivity space, Adobe’s AI assistant for Acrobat has seen usage double quarter over quarter. The tool, which helps users analyze and work with PDF documents, has demonstrated productivity gains, with studies showing users complete document-related tasks four times faster on average. The AI assistant is now available across desktop, web and mobile platforms, as well as in Edge Chrome and Microsoft Teams extensions.
Looking beyond commercial applications, Adobe announced a global initiative to help 30 million next-generation learners develop AI literacy, content creation and digital marketing skills using Adobe Express. The program involves partnerships with education providers, schools, nonprofits, and online learning platforms to provide training, certifications and career pathways.
The company’s approach to AI monetization includes three main streams: premium features like the upcoming video generation capabilities, enterprise services through Firefly, and integrated AI assistants across its product suite. Adobe aims to balance market expansion through accessible tools while introducing premium AI features for professional users and enterprises.
“Our highly differentiated technology platforms, rapid pace of innovation, diversified go-to-market and the integration of our clouds position us for a great year ahead,” Narayen said.
Adobe said it is accelerating its AI development while maintaining a focus on commercial safety and user control. The company’s Firefly models are specifically designed to be commercially safe for creative content, offering what Adobe describes as “unprecedented levels of output quality and user control” in its applications.
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