Imagine taking your family to Disney World and discovering an attraction filled with imaginative details, familiar characters, and experiences that weren’t possible a few years ago.
Disney may soon be able to implement more of those concepts with artificial intelligence, changing millions of guests’ theme park experiences.
And the company helping make that possible is Adobe (ADBE).
Adobe and Disney announced an expanded partnership on Nov. 9 to bring AI-powered creative tools to Disney’s theme parks, movie studios, and sports operations.
Disney may be able to explore more inventive ideas, create new attractions more quickly, and create more intricate settings for its well-known characters with the aid of technology. That may ultimately result in new experiences for families when they return.
The collaboration presents a unique chance for Adobe shareholders to show that major companies would cover the cost of its AI technology.
Disney hasn’t disclosed any particular tourist amenities or attractions because of the deal, however, and the financial parameters are yet unknown.
Adobe’s official announcement outlines the multiyear partnership and its plans for creative development. The more general concern is whether AI can enhance people’s enjoyment of entertainment while generating revenue for the businesses providing it.
Disney World visitors could eventually notice the difference
Adobe’s Firefly Foundry helps Disney’s Imagineering teams create theme park concepts.
One tool creates intricate digital artwork from crude pencil drawings. Another produces pictures that are in line with the visual esthetics and personalities of Disney.
Before building starts, the technology enables designers to test out many iterations of an attraction.
Disney explained the potential in a June report about its technology partnerships.
Kyle Laughlin, senior vice president of Walt Disney Imagineering Research & Development, said the tools can compress months of creative work into days or weeks.
For guests, that may have a significant impact.
Disney’s designers may consider many options before determining what to create rather of spending months honing a single idea.
Richer landscape, more intricate visual details, or imaginative ideas that would have taken longer to design might be features of a future attraction.
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Disney Cruise Line, film production, and ESPN are also involved in the collaboration.
ESPN will explore how AI could enhance sports narratives and optimize the use of historical video.
Faster design does not, however, guarantee that new attractions will open sooner. Construction, permits, finances, and other considerations still determine project timetables.
Disney’s AI bet presents another opportunity for Adobe
Beyond entertainment, there are financial ramifications.
Selling creative tools such as Photoshop and Premiere, Adobe has established a massive business. But AI tools now compete with it by enabling users to create complex designs with little expertise.
Disney gives Adobe a chance to show why big businesses still want specialist creative tools. In contrast to general-purpose AI systems, Adobe Firefly Foundry allows companies to customize their characters, locations, and artwork.
For Disney, this feature is important, since well-known characters need to have a consistent appearance across all of the company’s attractions and entertainment.
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Adobe’s fiscal third-quarter revenue climbed 13% to $6.76 billion. Its annualized recurring revenue, which measures the annual value of its subscription business, reached $27.5 billion.
Meanwhile, yearly revenue from AI-first products increased by more than 150% over the prior year. Adobe’s September earnings release confirmed the figures.
Disney’s support may help Adobe attract more significant corporate clients. However, investors still want proof that these alliances will generate significant revenue.
Adobe investors face a bigger question about AI
The possible advantage for someone organizing a trip to Disney is simple: Future trips may be more enticing with more creative attractions and entertainment. Still, there is no assurance that the technology would lower the cost of attending Disney World.
The financial result is similarly questionable for Adobe stockholders. As AI facilitates creative work, the company must show that consumers will continue to pay for its software.
Incoming CEO Anil Chakravarthy, who takes over Dec. 1, will face that challenge.
Adobe’s collaboration with Disney could provide a significant illustration of how its technology benefits significant creative enterprises. However, Disney’s well-known brand by itself cannot ensure increased revenue.
Investors should watch whether Adobe retains its pricing power, increases AI-related subscription income, and attracts additional corporate clients.
The question for Disney is whether quicker creative creation finally results in better visitor experiences.
The companies have an opportunity to benefit each other, but those benefits will take time to measure.
When a typical family visits Disney World and encounters something that Adobe’s technology enabled its designers to create, that may be the final test.
Related: Disney’s next earnings come with an unusual $600 million boost
