Figma and Canva could shake Adobe's position in the graphic design market with AI
Photoshop developer Adobe may soon face serious problems due to competitors' investments in artificial intelligence technologies.
Photoshop developer Adobe may soon face serious problems due to competitors' investments in artificial intelligence technologies.
Morgan Stanley recently lowered its price target on Adobe shares, as its main competitors, including graphic design platforms Figma and Canva, have attracted «tens and hundreds of millions of monthly users» thanks to the integration of AI agents and the capabilities they promise.
As Futurism notes, Adobe has responded by launching a massive rollout of its own AI integrations across its entire suite of apps, but analysts are increasingly skeptical of its ability to keep up with the times. Morgan Stanley believes Adobe has yet to significantly monetize its much-hyped AI approach. The investment bank’s analyst Kate Weiss warned that «there is relative uncertainty around a significant portion of Adobe’s [annual recurring revenue] base, where we are not confident that the progress in AI will be positive.»
Adobe shares are down just over 18% year-to-date, despite the company’s third-quarter results beating analysts' estimates. But Morgan Stanley says its annual recurring revenue is declining, suggesting the company’s AI development is lagging behind its competitors.
There is also a perception that Adobe is threatened by its own expensive subscription model, which could hurt its efforts to attract new customers, especially with the emergence of much cheaper or even free alternatives like Canva.
«What hobbyist can afford the entire Adobe suite for their hobby?» one Reddit user asked. Customers pay up to $22 per month for Photoshop alone, or nearly $70 per month for access to the more comprehensive Creative Cloud Pro subscription package.
The company has previously been criticized for filling its Adobe Stock archive with low-quality images created using artificial intelligence. In May, users reported that almost half of the images were created using artificial intelligence.
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