How many of you know that the ubiquitous PDF was created by Adobe? Now, the company, which since its inception more than four decades ago, has grown into a household name for creativity and productivity through its host of offerings and aims to have a similar impact on the rapidly evolving generative AI space. However, unlike its other subscription-based products, Adobe will not immediately monetise its generational AI offerings, instead opting for a "freemium model" as the company will first focus on getting people on board.

In an exclusive interview with CNBC-TV18 on the sidelines of the B20 Summit India 2023 — the official G20 platform for communication with the world's business community — Shantanu Narayen, Adobe's Global CEO, said his company is very excited about the opportunities generative AI offers the creative community by cutting out mundane tasks and allowing creators to focus on the output. If all goes according to plan, Narayen hopes Adobe will become synonymous with generative AI for creativity as it has for photo/video editing, productivity, etc.

"I've been in this business for a long time. I really haven't seen the kind of progress in any other field like I'm seeing in AI," Narayen said.

Adobe has its own creative generative AI suite called Firefly, which is designed to help users create, modify and optimise billions of pieces of content with greater speed and ease.

"Whether you're a student or one of these large companies, you're doing content automation, content production content, localisation, content, personalisation, and so I think the production of a lot of these mundane tasks is going to change (with generative AI)," Narayen said.

"I think creative is going to be both at the front end of that process — allow that creative expression to really explode — and at the back end of that process, which is the automation and production, and distribution and personalisation, to really happen," he explained.

Narayen said Firefly has garnered a lot of interest in India, and that it presents a tremendous opportunity for the company to capitalise on and grow.

"The traffic for Firefly in India is tremendous. And I think it just represents the innate interest in AI. So, from a business opportunity, we think it's great, it's incredibly exciting," he added.

When asked about how long it will take for generative AI to pay dividends, given how much companies, including Adobe are investing in it, Narayen said the focus for them is currently getting people to experience their product first, and then opt for a paid service — a "freemium" model in which users have a limited number of interactions with the product per day.

"We've always asked how do we get more people to our platform. And it's not just about the creative professionals and the top of the pyramid. It's the halo effect of that with communicators, and then with consumers," Narayen said, pointing to the ubiquity of PDF as a file format. While Adobe's own, paid applications allow you to interact with features that no other application can, there is no dearth of PDF readers that help with basic tasks.

"We will have a freemium model. So you can come in, you can try it out, you can perhaps use a certain number of generations. So I think the value for (us) lies both in terms of enabling more people on the platform as well as retention — credit backs, (which) is the ability for people to say, 'As I want to use more and more generations, I'm going to pay for it. So I think we have a multi-faceted approach to monetisation. But right now, the excitement is about getting people to the platform," Narayen added.

India's potential

Narayen expressed his excitement about the country's "incredible" talent pool.

"We have been extremely excited always about the incredible talent that exists in this country. And so when I (would) come here, it was always about talent, and how we attract and retain talent," Narayen said.

He pointed out two pivotal shifts in the economy that have intensified opportunities for Adobe. The first is the prospect of enabling businesses' digital transformation. Adobe's solutions cater to key decision-makers such as Chief Revenue Officers, Chief Digital Officers, and Chief Marketing Officers, across diverse sectors like aviation, financial services, and retail. The second shift lies in Adobe's collaboration with the burgeoning startup ecosystem in India, enabling solutions built on top of Adobe's technology platforms.

"I think (it's) the way they are using technology to engage with customers, so the business opportunity associated with Adobe in India has also exploded. So it's not just about what we can develop here, but also about selling," he said.

India is a potential $100 billion market for Adobe.

Narayen said Adobe sees India as a $100 billion addressable market opportunity.

"The business in India today is not where we want it to be, but the growth is tremendous and so, when we think about the growth opportunity, there's no reason why it shouldn't be in the billions of dollars over time. I mean, when you look at the economy, when you look at the businesses, for all of these Indian companies, the world is their oyster. We have a multibillion-dollar digital marketing business. So there's no reason why India shouldn't be one of the major regions for that," Narayen said.

Technology an agent for societal change

Narayen said technology, which has exploded in India over the past few years, can catalyse societal change — from creating digital infrastructure to delivery of service to public.

"The amazing advancements in the technology done to spur the economy — everything from investment in payment schemes to digital infrastructure to mobile devices — that technology is in many ways such an enabler for societal improvement. I have been struck by the emphasis on the importance of technology (in the B20 panel discussions)," Narayen added.

As India positions itself as one of the world's fastest-growing economies, Adobe envisions a future where technology and AI play pivotal roles in driving both individual creativity and business growth.

Catch all updates from from the B20 India Summit here.