Adobe Systems Incorporated (NASDAQ:ADBE) has announced that Firefly, its creative generative AI models, are now available for commercial use across its Adobe Creative Cloud, Adobe Express, and Adobe Experience Cloud applications.
According to the company, Firefly supports text prompts in more than 100 languages, allowing users to create visual content safe for commercial use.
Previously, Firefly's generative AI features were only available for experimentation and personal use but not for commercial projects, with Wednesday's announcement opening up the widespread use of Firefly-generated images for business purposes such as advertising and marketing.
Users without a subscription to specific Adobe apps will also be able to access Firefly through a standalone web app.
Content generated by Firefly includes a Content Credential, a digital label to indicate that generative AI was used to create the asset with information such as the asset’s name, creation date, tools used, and any edits made, Adobe said.
“With over 2 billion images generated during the beta, Adobe Firefly is ushering in a new era of creative expression for customers across every segment,” David Wadhwani, president of Digital Media Business at Adobe, said in a statement.
Users will be charged for their use of generative AI features based on consumption. Paid Adobe plans include a certain number of credits, with all-app Creative Cloud subscribers receiving 1,000 credits per month.
The company said it will be increasing the pricing for its Cloud plans by about 5% to 10% starting in select countries from November 1, 2023, with generative AI add-on credit packs available from $4.99 per month.
Analysts at Jefferies maintained their ‘Buy’ rating and $660 price target on Adobe stock following the announcement.
Adobe shares had added 2.1% at US$553.67 late morning on Wednesday.
“In our opinion, valuation remains reasonable at 25 times next 12 months enterprise value (EV)/earnings before interest, taxes, depreciation and amortization (EBITDA) versus the 10-year average 24.8x, and long-term investors should be rewarded from the many secular tailwinds,” they wrote.
They noted that Wall Street estimates for the 2024 financial year were biased to the upside, modelling 10.2% total revenue growth compared to 9.8% in the 2023 financial year.
“Full impact [of commercial Firefly] is hard to quantify given varying renewal dates and unknown usage beyond included credits, but clearly biased to upside,” they wrote.
“We would expect initial 2024 financial year guide at the 10/10 analyst day, though an early preview is possible at earnings tomorrow.”
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