Disney Taps Adobe AI to Bring Its Iconic Characters and Worlds to Life Faster

Adobe Inc. (NASDAQ:ADBE) and Walt Disney Co. (NYSE:DIS) announced a multiyear strategic partnership Monday to expand artificial intelligence across Disney’s theme parks, entertainment studios, cruise operations and sports businesses.

Under the agreement, Adobe will become Disney’s official AI innovation partner. Disney will gain early access to Adobe Firefly, Firefly Foundry, Photoshop and Premiere, along with dedicated engineering and research support.

Disney Turns to Custom AI Models

The companies will develop proprietary generative AI models using Adobe’s Firefly Foundry. These models will train on Disney’s intellectual property to produce commercially safe, production-ready creative assets.

Disney’s Imagineering division already uses the technology to turn hand-drawn sketches into detailed digital artwork.

Disney executive Kyle Laughlin told Reuters that AI could reduce creative processes from months to hours or days. He added that faster design changes could help avoid costly construction revisions.

However, Laughlin emphasized that the technology is not intended to replace Imagineering employees.

ESPN and Disney Studios Join AI Push

Adobe will also work with Disney’s StudioLab to improve creative workflows and production processes.

Meanwhile, the companies plan to use AI to boost fan engagement at ESPN and make more of its extensive content archive accessible.

Projects involving StudioLab and ESPN Edge are already underway. Additional initiatives will follow throughout the partnership.

AI Expansion Comes Amid Layoff Concerns

The agreement comes as Disney reportedly considers eliminating thousands of jobs to reduce costs.

According to a Nov. 3 Bloomberg report, Disney asked some managers to identify potential annual cost savings of 20%.

The cost-cutting effort comes amid streaming competition, box-office pressures and slowing international theme park attendance.

Disney will report earnings Nov. 17. Analysts expect earnings of $1.68 per share, up from $1.11 a year earlier. Revenue is forecast to rise 12% to $25.19 billion.

Price Action

Price Action: Adobe shares were down 0.21% at $238.80 and Walt Disney shares were up 1.65% at $118.67 at the time of publication on Monday, according to Benzinga Pro data.

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