Adobe expands its AI engineering hub in India, focusing on lawsuit-free AI models.

Adobe’s AI Secret: How They’re Selling Lawsuit-Free Models & Expanding in India!

The AI gold rush is on, and everyone’s scrambling for a claim. But unlike the prospectors of old, today’s tech giants are battling copyright lawsuits alongside technical hurdles. Adobe, however, claims to have found a loophole: ethically sourced AI. They’re betting big on ‘Firefly,’ their in-house AI model trained solely on Adobe-owned data. The promise? AI-powered tools without the legal headaches.

Prativa Mohapatra, Adobe India’s managing director, assures us that this strategy is key to selling subscriptions. And, judging by their 14% revenue increase in India (₹7,754.64 crore, or $887.6 million), it might be working. Though that growth is admittedly slower than the previous years’ scorching 30%+ pace. Maybe AI isn’t quite the magic bullet they hoped for. Yet.

Of course, there’s a catch. Remember that squeaky-clean image? Turns out, about 5% of Adobe’s dataset did include images from Midjourney, that rambunctious AI art generator. Adobe ‘clarified’ this, but the legal alarm bells are ringing again. It seems even the most well-intentioned AI efforts aren’t immune to a little data contamination.

The bigger question is whether Adobe’s cautious approach will ultimately hamstring them. As Kashyap Kompella from RPA2AI Research points out, their stringent checks might limit the versatility of Firefly compared to the anything-goes attitude of Midjourney or even Canva.

Adobe’s India operation, however, is more than just a sales hub. It’s a crucial engineering center, housing over 8,500 employees (making it their second-largest base outside the US). They’re investing heavily in a new Bengaluru division and a local data center. Apparently, much of Firefly’s core development, including the integration of ‘vectors’ in Photoshop, happened in India. So, while the suits are fighting in California, the code is being written in Bangalore.

But even with ethical AI and a burgeoning engineering hub, Adobe faces another challenge: their billing structure. The developer community isn’t thrilled about mandatory full-year subscriptions, especially when Canva offers a more flexible, pay-as-you-go option. Ouch. To combat this, Adobe’s dangling free tiers, hoping to lure in the freeloaders and convert them into paying customers. It’s a classic ‘rope ’em in’ strategy, and frankly, they have the product to make it work.

In the end, Adobe’s playing a long game. They’re betting that businesses will pay a premium for AI tools that don’t come with the risk of a lawsuit. Whether that gamble pays off remains to be seen. But one thing’s for sure: the AI wars are just getting started, and Adobe’s armed with a (mostly) clean conscience and a growing team in India.

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