Investing.com -- Adobe (NASDAQ:ADBE) has introduced a new artificial intelligence offering that can generate videos from text prompts, as the Photoshop-maker looks to bolster its position in the race to roll out products enhanced by the nascent technology.
Dubbed the Firefly Video Model, the service is due to compete with previously-announced video tools from Microsoft-backed OpenAI, TikTok-owner ByteDance and Facebook-parent Meta Platforms (NASDAQ:META).
At an event in Miami unveiling the Firefly Video Model on Monday, Adobe added that it will begin to open up the tool to customers who have signed up for its waiting list, although it did not announce a specific launch date.
"[W]e were impressed by [generative AI] product innovation, particularly around video," said analysts at Wells Fargo who attended the event.
California-based Adobe did not reveal any customers who have signed up for the product, but said its image generation service will be used by PepsiCo-owned sports drink brand Gatorade and toy group Mattel (NASDAQ:MAT).
Meanwhile, Adobe executives highlighted their cloud-based 3D art application Neo, with analysts at Citi noting that "creatives say this is a game changer as it enables less sophisticated users [...] to create 3D art in an intuitive manner."
Adobe is banking on the success of creating models that are trained on data it has rights to use, which would allow for content to be legally produced for commercial work.
However, the wider spending environment has remained subdued recently as clients grapple with economic uncertainty and relatively high interest rates. In September, Adobe unveiled current-quarter revenue guidance that missed analysts' expectations.
In a note to clients on Tuesday, analysts at Mizuho said they expect the Firefly Video Model will help pull users into Adobe's premium plans and could catalyze additional sales of its Premiere Pro product.
They added that while the Miami event did not include "much by way of an intra-quarter update," Adobe did state that it is seeing "momentum" in its fourth quarter and "expressed confidence in its guidance."
Shares in Adobe rose by 2.9% on Monday.
(Reuters contributed reporting.)