Adobe Drops After Tepid Outlook Stokes AI Disruption Fears.

Adobe Inc. saw a decline in its shares following a less-than-expected annual sales forecast, raising concerns about potential competition from emerging AI-based startups. The company is incorporating generative AI features into its software, such as the Firefly model in Photoshop, and plans to introduce a new higher-priced Firefly offering with video models. Despite positive metrics in new creative software business, investors have expressed worries about AI tools from competitors like OpenAI and Runway AI impacting Adobe's market share. The company's stock fell by 12% after the news, reflecting ongoing uncertainties about the adoption of AI in the industry. [Extracted from the article]