Adobe Launches Adobe Foundry Services in Next Big AI Move

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3:09So I bring this up because Adobe is doing its own thing with AI generated video and like Firefly for images, which you remember from Adobe. We've talked about that for a couple of years now. This is supposed to be brand and copyright safe. The company out with this new product is called Adobe AI Foundry, and it's essentially a model that lets companies build their own Gen. AI models that are trained on their own material. Hannah El-Sakir is vice president of Gen. AI, new business ventures at Adobe. She joins us from Queens. Hannah, did I get that right? you got that right. Okay. And I'm with Adobe as well.

3:43So is that, but, but that makes sense, right? Like the, the way that you guys think about this is you create, you can use prompts to create copyright safe videos that companies enterprises can use in, in marketing and in press materials. Correct. Yeah. So AI, you know, AI has been quite the whirlwind these last couple of years. And Adobe AI Foundry really allows Fortune 2000 enterprises to deeply tune responsibly trained AI models rooted in their own brand and IP. So we care a lot about IP protection on brand creation, as you mentioned, across image, video, 3D, vector, audio, all those things.

4:24So what's the use case that you envision for these companies? I think a lot of people are having trouble understanding this new world, So you've got to break it down for us in a way that's like, OK, you're telling your friend about it who doesn't even know what you do at Adobe. Of course. And, you know, part of it is that we are in an attention economy. And so the amount of media that we all consume now, whether it's audio, radio, video, shorts, is very high. And the key is being able to represent the brand, represent the franchise in a way that's responsible and on brand. That just takes a lot of effort and a lot of time.

5:02And so the idea of Adobe AI Foundry is that once we responsibly train these brands where you protect your own IP, they can be used in the Adobe products that marketers, creatives are using, like Gen Studio, like Photoshop, Firefly Boards, Premiere Pro. These are all part of the workflow in a creative and marketing company. So it gives you trust, gives you precision and creativity. So let's say a company uses the product that you're offering. It's brand safe. They trained it on their own data. They trained it on their own materials. They put it out in the world. Then that becomes part of the ecosystem that maybe some other model is trained on.

5:44And it's kind of on the loose now. Is that possible? I don't think that's the use. That's a great question. I don't think that's exactly the use case. I'm not saying it's the use case. I'm saying it's a consequence of content being out in the wild. Whether we like it or not, what we do is training AI models. Yeah, the way we think about it is these are enterprise grade and IP protected. And so they're for the use of global leaders like the Home Depot, Disney. They're co-developing this with us for their own use. This is not about putting these models out in the wild per se. This is about them being able to unlock new AI workflows.

6:25And that really lets them tailor what they're doing in complex media creation. But when you say their own use, couldn't they use it on social media and say, OK, this is a you know, this is a way that we can connect with our audience through Instagram or through TikTok or something, creating one of these videos. And then it's out in the world. Yeah, I'll give you an example of one that Paramount Plus did last year. They put, the If campaign out there. That's a way to let fandom drive part of the brand, but they're using a responsible model behind it. Same thing with Gatorade. Gatorade has put out an AI-powered Firefly model on their website, and that's a way for them to be able to control the brand, put it in the hands of fandom, because we all want to be part of the narrative now.

7:08So that's the responsible approach that both those brands decided to take. So put it out when they want, but they're also creating kind of their own, it almost feels like private set of images or IP, as you said, that is really for them to use and to control. Correct? Yes. I mean, again, what, you know, lots of these companies have large IP that they have built over time. They're beloved franchises that we know or brands that we know, and they wanted to be in the driver's seat. So they actually came to us and said, on this AI journey, we trust Adobe. Adobe has been with us in marketing, has been with us in creative.

7:48We feel you have a good AI approach to this, and you're the one that we want to partner with. So whether it's in our products like Gen Studio for Performance Marketing or Photoshop, like I said, we are part of the trusted workflow that they're using, and that's why they came to us. All right. So then let's talk about your business and what this does to drive usage above and beyond what enterprises are already doing with you. Sure. This is really just an evolution, a natural evolution of our AI journey that started. Thank you for covering the Firefly image models in 2023. Businesses are coming to us and saying, hey, we feel really good about what we've been doing.

8:26The initial base models actually didn't understand their IP. We consider that a feature, not a bug of those models, right? Because we had license to every piece that went in. And so as they've got moved up the customization spectrum, they are now asking for world building. And that is what Foundry as an AI solution or Adobe AI Foundry offers them. And so we're really pleased to have trust from the biggest Fortune 2000 brands out there. One of the things that we wonder is once the model is trained by one of your customers or clients, do they need to keep paying to use it? Or is this a one-time consulting type charge or ongoing subscription revenue for you?

9:07Yeah. So there's always innovation. I think you see new model releases are coming out all the time. And so this is an ongoing relationship. Actually, they've asked us to be more like partners with them on this long-term journey. So there's evolutions of this, both from image, maybe you're moving into video, maybe you're moving into 3D. And of course, as new architectures and models come out, we'll continue that journey with them. You know, we only have about a minute left, but I got to be honest, Carol and I are a little freaked out by this technology and the implications of it. A lot. Just how good it's going to get.

9:39Convince us that we shouldn't be freaked out. I don't think you should be freaked out because at the essence of what we believe is human creativity. And so tools like Photoshop, I'll just give you a quick story. When Photoshop launched in the 90s, that was also kind of a transformative thing. And it was not well embraced. Now it's a verb to us. So these are new tools at the intersection of creativity that all of us are going to be able to figure out how to unleash our own narrative and storytelling. So think about it as a friendly intern to help you out. 10 seconds, 50 seconds. Are we going to moment so we're like, wait, is that real or is that fake?

10:13Like, are we going to have a hard time as it gets better and better just very quickly? Yeah. So we have content authenticity, which is part of our provenance. Every single piece of data, every single piece of creative is stamped indefinitely with a forensic watermark. So I don't think you'll be wondering from Adobe. So we'll have real Tim, real Carol, fake Carol, fake Tim, Hannah, really cool stuff. Interesting. Hannah El-Sakar, she's vice president of Gen AI, New Business Ventures at Adobe.

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12:14When you're running a business, the best days are the ones where priorities stay on track. For midsize and large companies, risk can affect multiple parts of the organization at once, from property and liability to cyber and regulatory challenges. At that level, managing risk becomes an ongoing discipline. At the Hartford, the focus is on helping businesses manage risk before it turns into something more disruptive. And when losses do happen, that work is paired with insurance coverage shaped by years of underwriting, risk engineering, and claims experience. Learn more at thehartford.com slash risk mitigation.

12:49Policies provided by Hartford Fire Insurance Company and its property and casualty affiliates, Hartford, Connecticut.