June 13 (Reuters) - Photoshop maker Adobe

raised its revenue forecast for fiscal 2024 on Thursday as more

businesses and consumers take to its artificial

intelligence-powered editing tools amid signs of an easing

economy.

Shares of the San Jose, California-based company jumped 14%

in extended trading.

The company now expects revenue of between $21.40 billion

and $21.50 billion, compared with its prior forecast of between

$21.30 billion and $21.50 billion. Analysts on average expected

$21.46 billion, according to LSEG data.

Adobe's outlook reflects that its AI efforts are paying off

as clients hike spending on its software products such as

Premiere Pro, Animate and After Effects, which are used by

creative professionals in a variety of fields.

The company said in April it plans to incorporate an AI tool

to generate images in its popular Photoshop software, amid

heating competition from the likes of OpenAI, Stability AI and

Midjourney.

The company reported revenue of $5.31 billion in the second

quarter, beating estimates of $5.29 billion.

The company reported digital media revenue of $3.91 billion,

above estimates of $3.89 billion.

Adobe has developed its own AI image generation tool called

Firefly which it trains on data it has the rights to, at a time

of heightened concern regarding data privacy and copyright

around AI-created content.

On an adjusted basis, the company earned $4.48 per share in

the quarter, compared with estimates of $4.39 per share.