Adobe: GenAI Opportunity or Threat?


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Adobe's Generative AI Dilemma

This Harvard Business School case study examines the strategic challenge faced by Adobe CEO Shantanu Narayen in late 2022. The rapid rise of generative AI image models from companies like OpenAI, Midjourney, and StabilityAI presented both an opportunity and a threat to Adobe's core business.

Key Concerns and Decision Points

The case highlights concerns among creative professionals – a key customer segment for Adobe – regarding the ethical implications and trustworthiness of GenAI models trained on internet data. The central dilemma for Narayen and his team was deciding whether Adobe should:

  • Partner with an existing GenAI player
  • Acquire an existing GenAI player
  • Build its own GenAI model

The study emphasizes the critical need to responsibly train any model if Adobe chooses to build one, maintaining its trusted relationship with both enterprise and creative professional clients while retaining its industry leadership.

Case Details

The case study was published by Harvard Business School on April 23, 2025. It's 26 pages long and is available for purchase, offering various discounts for bulk orders.

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MSRP: Was: Now: $11.95 (USD) Quantity price applied Format information (No reviews yet) Write a Review Adobe: GenAI Opportunity or Threat? Item: #525052 Pages: 26 Publication Date: April 23, 2025 Register as a Premium Educator at hbsp.harvard.edu, plan a course, and save your students up to 50% with your academic discount. Product Description Publication Date: April 23, 2025 Source: Harvard Business School In December 2022, Adobe CEO Shantanu Narayen faced a pivotal strategic decision due to the rapid rise of generative AI image models from OpenAI, Midjourney, and StabilityAI. Adobe, a leader in digital media and marketing software with a 40-year legacy of innovation and successful adaptation recognized GenAI as both an opportunity and a threat to its core business. Many creative professionals, a critical Adobe customer segment, expressed deep concerns over GenAI models trained through data mined from the Internet, raising ethical and trust-related issues. The case explores Narayen and his leadership team's deliberations: Should Adobe partner with or acquire an existing player, or build its own GenAI model? If Adobe chose to build, how might it responsibly train the model to protect its trusted relationship with enterprise and creative professional customers, while keeping its leadership position in the industry? Product #: 525052 Pages: 26 Related Topics: Strategy,
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