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Adobe: Strong Q1, outlook a bit light, GenAI on deck for Experience Cloud

Adobe: Strong Q1, outlook a bit light, GenAI on deck for Experience Cloud

Adobe delivered a strong first quarter, but its outlook missed expectations.

The company, which recently dropped its plans to acquire Figma, reported first quarter earnings of $1.36 a share on revenue of $5.18 billion, up 11% from a year ago. Non-GAAP earnings in the first quarter were $4.48 a share.

Wall Street was looking for first quarter non-GAAP earnings of $4.38 a share on revenue of $5.14 billion.

As for the outlook, Adobe projected second quarter revenue of $5.25 billion to $5.3 billion with non-GAAP earnings of $4.35 a share to $4.40 a share. Analysts were looking for $4.38 a share and $5.31 billion in revenue.

For each of its product areas, Adobe posted double-digit percentage growth rates. Digital Media revenue was up 12% from a year ago, Creative revenue was up 11% and Document Cloud posted growth of 18%.

In prepared remarks, Adobe CEO Shantanu Narayen said the company is seeing strong traction with its generative AI rollout across the product portfolio. He said:

"We have innovated by delivering generative AI directly in products—with releases in Adobe Photoshop, Illustrator and Express across both desktop and mobile. AI Assistant in Acrobat and Reader unlocks the tremendous value of the trillions of PDFs around the world. We’re bringing generative AI to Adobe Experience Cloud and will demonstrate our AI Assistant for customer experience management at Adobe Summit."

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What if a Trillion PDFs Could Talk?

What if a Trillion PDFs Could Talk?

No matter where you turn these days, you are bound to hear about a little something called generative AI. I’ve said it before…AI is really a “thing” now. Don’t misunderstand my sarcasm: Generative pretrained transformers are not new. Neither is artificial intelligence or the models that power them. But within the last year, we’ve seen leaps and bounds in how these innovations are being brought together in the name of productivity.

Case in point: The AI Assistant in Adobe Acrobat and Reader. That’s right…your PDF just got chattier.

What’s the News Here?

Adobe has launched a beta of an AI Assistant that brings conversational and generative AI capabilities to Reader and Adobe Acrobat. Essentially, this new “conversational engine” can summarize the content of a document supported by Acrobat or Reader, answer questions, and recommend more questions based on the content. The models behind Acrobat Liquid Mode bring responsive reading for PDFs on mobile devices, and Adobe’s unique understanding of different document file formats and structures boosts the quality of responses, output and recommendations.

In researching this post, I have played with the beta, and I have to agree that the responses are accurate, but also noted that often the answers were supplemented with citations and additional summaries and insights from across a couple very lengthy documents. I found that reading a document and also leveraging the AI Assistant got me to dig deeper into some thoughts which was something I wasn’t necessarily expecting from the experience.

In the beta, Adobe Acrobat and Reader now include:

  • AI Assistant: Answers questions directly from users in a highly interactive and conversational manner, recommends and delivered suggested and custom questions based on the content of the document.
  • Generative summary: short overviews of content in easy-to-read format.
  • Intelligent citations: attribution engine and generative AI created citations to verify the source of AI Assistant’s summaries and answers to user questions.

The AI Assistant beta is currently available, allowing Acrobat Reader and Acrobat Individual, Pro and Teams customers to simply open their applications and start chatting with their documents today. There is also a private beta for enterprise customers. New features will be coming over the next several weeks. For the time being, these features are available on desktop and web. English is currently supported, but Adobe notes that other languages are soon to follow. Once out of beta, Adobe plans to release a new add-on subscription plan for the full range of AI Assistant capabilities. Currently, there is no word on how long AI Assistant is expected to be in beta, but there is already an extensive roadmap of future capabilities.

What’s the Impact Here?

Adobe’s AI Assistant brings the summary and productivity power of AI to the gold standard in business documentation. I struggle to think of the last time a white paper, contract or user manual wasn’t delivered in a large, multi-page PDF. Now…those PDFs can talk. Or rather…they can listen and then talk back with these new conversational AI functions. The impact on productivity and usability of documents is unquestionable. Imagine being able to just ask product guide how to troubleshoot, or pinpoint exactly where specific phrases or critical details like pricing are in a document. Imagine being able to ask if there are any differences in that pricing. Teams can start to ask for summaries of trends, send meeting notes or chapter summaries, or ask AI to identify anomalies in documents like contracts.
 

What Makes Me Lean in Here?

While the usability of the AI Assistant is unquestionable, we must think about how we as content marketers and creators need to plan and perhaps even write differently thanks to AI Assistants and copilots like this one from Adobe. As a content marketer, things like chapters, bookmarks, clickable links, sticky notes, and comments are lifeline tools when using a PDF as the delivery mechanism for your thought leadership. Afterall, you don’t just “export as PDF” and call it a day.

In this age of Generative AI, we will need to think differently and create within new mental models. When I launched Adobe Acrobat and opened a recent report I had written, I was greeted by the AI Assistant who “knew me” by name and it said, “I’m here to help you read, understand and work with your documents more efficiently.” I must admit that I was left wondering if I had set up the right phrasing, keywords, summary statements and guides to help the AI Assistant summarize and understand the big takeaways that I intend readers to walk away with. It made me exceedingly aware that I needed to not just think about the thoughts I was conveying but HOW I was structuring those thoughts to work well with generative AI tools like this assistant…was I writing to be seen and summarized?

Generative AI will open a world of content possibilities, even offering to author emails, change tone and tenor, update information based on pricing, product or even brand details. It will also offer to break through my writer’s block and whip up that first draft for me…even offer to edit or tighten up my run on sentence. So how can I be sure that I’m clear in those thoughts or leaving the right breadcrumbs to new thoughts?

Thought leadership content is hard enough to create as it needs to be something truly new with thinking that stands the test of time. Now we must make sure that these new thoughts are understood and summarized as such. We won’t be able to hide from the spotlight generative AI can shine on old ideas masquerading as new big ideas!

Content strategy and an overall understanding of where and how AI is impacting an organization’s capacity to create, contextualize and individualize content has to modernize and change. Understanding how these new AI powered tools are fundamentally shifting the process and operations of content marketing has never been MORE important.

With Adobe’s new AI Assistant, PDFs could be saying a lot more than we ever intended them to say. Are we as content marketers ready for this new conversation?

For more on the new AI Assistant, check out Adobe’s announcement here: https://news.adobe.com/news/news-details/2024/Adobe-Brings-Conversational-AI-to-Trillions-of-PDFs-with-the-New-AI-Assistant-in-Reader-and-Acrobat/default.aspx

 

Header Image was AI Generated using Adobe Firefly

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Zscaler acquires Avalor for security data fabric

Zscaler acquires Avalor for security data fabric

Zscaler said it will acquire Avalor, an Israeli startup that launched just 26 months ago, in a move that will aim to scale up Avalor's Data Fabric for Security.

The deal reportedly cost Zscaler $350 million, according to Globes. Zscaler, which said it paid mostly cash, is in a battle with CrowdStrike and Palo Alto Networks to convince enterprises to consolidate on their cybersecurity platforms. Microsoft and other giants are also in the mix.

Avalor's Data Fabric for Security includes 150 pre-built integrations to identify and predict vulnerabilities. Zscaler plans to add its 400 billion Zscaler transactions and its Zscaler Zero Trust Exchange to Avalor's platform. Avalor will continue to run as an independent unit.

Cybersecurity players are racing to add AI to platforms to combat emerging threats from AI.

Jay Chaudhry, CEO of Zscaler, said "with the Avalor acquisition, we can more effectively identify vulnerabilities, while predicting and preventing breaches."

Here's a look at Avalor's features. 

Avalor CEO Raanan Raz said in a blog post arguing the Zscaler purchase accelerates its plans:

"By building on the flexible, extensible data model at the heart of the Avalor Data Fabric for Security, Zscaler now has the opportunity to dramatically advance the state-of-the-art in security insights. By applying the power of AI to this breadth of data, we can help organizations automate security operations across vulnerability discovery and prioritization, attack path and kill chain analysis, and threat remediation and prevention."

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Your next Zoom meeting may be at an AMC Theatre

Your next Zoom meeting may be at an AMC Theatre

The movie theater may become a hybrid work location if AMC Theatres and Zoom have their way. AMC has rolled out Zoom Rooms in eight markets around the country.

According to the companies, the goal is to "redefine interactive business meetings and hybrid events." For AMC and Zoom the deal could be a win-win. AMC needs to fill theatres as the movie industry struggles due to streaming and Zoom would like to redefine hybrid and remote work.

The booking process is online, and you pick by location. For instance, AMC Empire 25 in New York City has 137 guests max and will run you $2,250 for a three-hour block. The Kansas City AMC Town Center 20 has a max of 150 guests and will cost $1,500 for a three-hour block. Bookings are usually available Monday through Thursday--peak work days that don't interfere with movie launches.

In a statement, the companies said Zoom Rooms at AMC are designed for dispersed workforces and customers who can be brought together for product launches, meetings, press conferences and hybrid events. The idea is to combine Zoom's technology with AMC's sight, sounds and seating experience.

The partnership with Zoom and AMC was first announced in 2022 to drive "state-of-the-art" collaboration. Initial Zoom Rooms at AMC locations include Atlanta, Chicago, Denver, Kansas City, Los Angeles, New York City, San Jose and Seattle/Tacoma.

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Oracle adds generative AI features into Fusion Cloud, expands Azure partnership into Europe

Oracle adds generative AI features into Fusion Cloud, expands Azure partnership into Europe

Oracle said it has added generative AI throughout its Fusion Cloud Applications Suite and expanded its Oracle Database at Microsoft Azure effort into Germany with more regions around the world on tap.

The announcements were made at Oracle CloudWorld in London. The Oracle Database@Azure plans were previewed on Oracle's third quarter earnings conference call. With the launch of Oracle Database@Azure in Frankfurt, Oracle is planning on adding 15 regions globally including France, Italy, UK, India, Japan, Australia and United Arab Emirates and others.

Oracle CTO Larry Ellison said Japan is shaping up to be a big market for Oracle Cloud Infrastructure (OCI) and sovereign data workloads are critical.

As for the Fusion generative AI rollout, Oracle is layering in large language models into a business that had $800 million in revenue in the third quarter. The genAI features are added to finance, supply chain, human resources, sales, marketing and service applications.

Oracle said it embedded more than 50 generative AI features into Fusion Applications. Here's a brief roundup:

  • Fusion ERP gets insight narratives to surface patterns that affect the business with context and explanations. Oracle also added narratives for financial reporting, explanations for predictive forecasts and status summaries for projects.
  • Fusion Cloud Supply Chain and Manufacturing gets item description generation, supplier recommendations and negotiation summaries.
  • Fusion HCM gets category landing pages and generative AI built career sites in Oracle Recruiting, job match recommendations, tools so candidates can get answers to questions and manager survey generation.
  • Fusion Cloud CX gets service webchat summaries, tools to write sales content and recommendations for marketing collateral.

Oracle also added guided generative AI journeys in Oracle Cloud HCM and SCM with preferred large language model and frameworks to focus on industries.

 

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Salesforce Reinvents Itself Again With Einstein 1

Salesforce Reinvents Itself Again With Einstein 1

It’s Albert Einstein’s birthday today. Einstein would not have imagined 885 people dressing up as him to set a Guinness World Record, 145 years after he was born. Salesforce held a special event last week in San Francisco, during their developer-focused conference, TrailblazerDX, where Trailblazers dressed up as Einstein to break a Guinness World Record. During this conference, Salesforce announced their next-generation AI platform, Einstein 1 Studio. The energy on the show floor was palpable as hundreds of developers hurried from expert sessions to demo stations to the Hacker Camp. Thousands of other developers tuned in online to stream the conference programming.

Over the course of years, Salesforce has made many bold decisions to continue to reinvent itself. On its 25th anniversary this week, Salesforce once again reinvented itself by deciding to go all in with AI. When Parker Harris, co-founder of Salesforce, took the keynote stage to announce Einstein 1, he joked about him looking old. He was as energetic and beaming with enthusiasm as one can be. On a beach-themed stage, he even threw a beach ball to the next presenter after flawlessly pronouncing his name in single breath, Muralidhar Krishnaprasad, the engineering head of Data Cloud, who goes by MK. Parker also took the opportunity to remind the audience about Salesforce’s 1-1-1 model: donating 1% equity to charitable causes, 1% products to non-profits, and 1% of employees’ time in community service.

Einstein 1 Studio includes Prompt Builder, Copilot Builder, and Model Builder—three essential ingredients of a next-generation platform. Salesforce’s post captures details on these specific components. At high-level, the platform caters to developers who want to build AI-driven experiences that can leverage Salesforce metadata, customizable workflows, and underlying predictive and generative AI-models that are either trained inside Salesforce or elsewhere. These Salesforce developers also want to maximize code reuse and program a system using a natural language. The foundation of Salesforce’s big bet on AI is its fast-growing Data Cloud. MK talked up the role of Data Cloud in preventing hallucination and keeping Einstein 1 “grounded in trust.”

My insights

With Einstein 1, Salesforce is in a unique position to serve customers in three important dimensions—use data to strengthen AI, provide a platform to build and extend product experiences, and provide first-party and third-party solutions. Salesforce has clearly demonstrated their intent to lead their platform with AI. They are also matching their intent with investment in various areas, products as well as the underlying platform.

As Salesforce blazes forward with Einstein 1, and as CxOs closely navigate this fast-moving chaotic domain to make informed decisions about their own investment in AI, here are a few things worth highlighting:

Ecosystem beyond Salesforce

Einstein 1 platform’s near-term roadmap is designed to help existing Salesforce customers to get the best out of their investment. There are many more prospects, however, who don’t use Salesforce today, their products or the platform. These prospects are exploring their next-gen platform choices that include platforms from hyperscalers, niche AI vendors, and select global service integrators (GSI). Many of these prospects have also invested in various copilots. While Einstein 1 can clearly compete to win, it’s unclear whether it is enough of a draw for these prospects to consider Salesforce. As copilots proliferate, customers want to avoid an interoperability nightmare. While most vendors do offer lower-level API integrations, lack of well-defined semantics and interfaces pose interoperability challenges for components that operate at higher levels.

And then there are large number of startups (ISVs) that have choices to make. Clara Shih, CEO of Salesforce AI, underscored the value proposition of Einstein 1 on why startups should consider building on Salesforce instead of investing their limited resources in building core AI components that Salesforce is heavily investing in. ISVs will continue to be the one of the biggest customers of any next-gen platform. If ISVs can get what they need from Salesforce, and if Salesforce can provide them effective distribution and commerce via AppExchange, there is an opportunity to enable a brand-new AI ecosystem.

Benchmarking next-gen platforms

While engineering and business efficiency gains from using a next-gen platform such as Einstein 1 are very real, the industry lacks KPI definitions and a benchmark to compare these platforms and measure ROI. It’s unclear what makes a copilot a great copilot or what makes a prompt designer a great prompt designer. Enterprise software vendors do use domain-specific KPIs such as time to close a ticket, increase in pipeline coverage etc., but IT leaders want to compare various platforms to better understand their ROI. While this is clearly not vaporware, IT leaders have been burnt before by making an early investment in technology they did not fully understand. There will always be a qualitative comparison, but a good set of KPIs ground everyone in facts. It’s time someone takes a lead to define what these KPIs could look like.

Bridging PX and DX

A promise of a next-gen platform—the one that goes beyond code reusability, productivity gains, and natural language driven development—is how fast one can go from an idea or a sketch to a working application with customer validation. AI can effectively help bridge the gap between product experience (PX) and developer experience (DX) with faster feedback loops. Finding the right problem to solve is equally, if not more, important than solving it efficiently. The last thing you want to use AI for is to increase the efficiency of solving a wrong problem. Salesforce’s Flow Builder is the closest to a visual representation of a working application but it’s not a prototyping tool. Salesforce and the rest of the industry have a unique opportunity to increase their focus upstream—investing in AI-driven declarative prototyping tools—to reap the benefits downstream, faster time to market and time to value.

Happy coding, or shall I say happy generating!

Tech Optimization Chief Technology Officer

UiPath delivers strong Q4, will launch large language model

UiPath delivers strong Q4, will launch large language model

UiPath reported better-than-expected fourth quarter results with revenue growth of 31% as its automation platform gains traction. The company plans to launch a new large language model next week that "combines open-source algorithms, our specialized AI, proprietary business documents and communication data."

The company reported fourth-quarter net income of $33.92 million, or 6 cents a share, on revenue of $405 million. Non-GAAP earnings were 22 cents a share.

Wall Street was expecting fourth quarter non-GAAP earnings of 16 cents a share on revenue of $383.7 million.

As for the outlook, UiPath said first quarter revenue will be $330 million to $335 million, compared to estimates of $338 million. For the fiscal 2025, UiPath projected revenue between $1.55 billion to $1.58 billion, relative to estimates of $1.53 billion.

UiPath CEO Rob Enslin said the company saw a strong close to the fourth quarter and the company's Business Automation Platform was delivering value for customers.

"We reported a strong close to the fiscal year exceeding our guidance across both top and bottom-line metrics driven by demand for the depth and breadth of our platform and the team's focus on customer success, which is at the core of everything we do," said Enslin. "C-level executives are no longer solely prioritizing digital transformation. They're also prioritizing AI transformation. I believe that the combination of AI and automation is the strategic change enabler for our customers."

For fiscal 2024, UiPath reported a net loss of $89.9 million on revenue of $1.31 billion, up 24% from a year ago.

During the quarter, UiPath launched UiPath Autopilot for Studio and Test Suite in public preview, expanded partnerships with Deloitte and Google Cloud and outlined new features for its Business Automation Platform.

Key points from the earnings conference call:

  • UiPath large customers are trading up RPA investments to the full automation platform.
  • "The SAP partnership is progressing well. And we are pleased with a momentum and pipeline generation across geographies," said Enslin.
  • A partnership with Microsoft looks promising. "We continue to deepen our partnership with Microsoft. This brings AI powered automation to customers using Microsoft Azure," said Enslin. "We see opportunities to expand this collaboration to accelerate our joint customers' move to the cloud with AI infused industry solutions and enterprise modernization with Microsoft.”
  • Enslin said UiPath will continue to invest in sales for new verticals including "investments in growth specialist sales engineers to support our customers and further industry verticalization in areas like financial services, insurance, health care and public sector."

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Microsoft's Copilot for Security will go for $4 an hour

Microsoft's Copilot for Security will go for $4 an hour

Microsoft launched Copilot for Security, but the most interesting item is the software giant's monetization model. Copilot will go for $4 an hour in a pricing model that positions generative AI more like a digital worker.

Copilot for Security will be generally available April 1 under a consumption model that covers Copilot as a standard experience and embedded across Microsoft's security portfolio.

Microsoft said the consumption model enables enterprises to start small experiments without per device and per user charges. Customers can use existing Azure accounts and be billed $4/hour via a Security Compute Unit. The per hour pricing is a notable move given the industry's $30 per month per user norm.

According to Microsoft, Copilot for Security will enable security and IT pros to catch signals, intelligence and signals across the threat landscape via a large language model that outlines insights and next steps.

Generative AI is being leveraged across security platforms including CrowdStrike, Palo Alto Networks and others. Microsoft also wants to be seen as a security platform and other hyperscalers are in the mix. For instance, Google Cloud launched Security Command Enterprise, which fuses multi-cloud security, AI and SecOps.

Each of these cybersecurity platforms are looking to capitalize on enterprise efforts to consolidate vendors and get more for their money.

Describing the end user feedback from their private access program, Vasu Jakkal, Corporate Vice President of Microsoft Security, said: "We surveyed, 97% of end users actually got joy out of using the Copilot.” When asked about how Microsoft intends to go to market with their security offerings, she added, "after three years of its inception, security is no longer an attach motion for Microsoft; it's a standalone business."

Chirag Mehta, Vice President and Principal Analyst, covering cybersecurity at Constellation Research, attended a security event from Microsoft to learn more about the Copilot firsthand, said: 

“Microsoft’s investment in their security portfolio signals their intent to double down in the cybersecurity domain. Leveraging their partnership with OpenAI, Microsoft continues to embrace Generative AI to strengthen their offerings. Security Copilot is an example of using Generative AI to make security more consumable, and to better equip IT and security professionals to defend against sophisticated attacks when there is scarcity of people with cybersecurity skills.”

Copilot for Security includes:

  • Custom promptbooks to save natural language prompts for security workflows.
  • Knowledgebase integrations that are in preview.
  • Multi-language support.
  • Third-party integrations.
  • Microsoft Entra audit and diagnostic logs.
 

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Zendesk acquires Ultimate, builds out AI agent platform

Zendesk acquires Ultimate, builds out AI agent platform

Zendesk said it will acquire Ultimate, a chat-based service automation company that has UltimateGPT and a bevy of integrations with service platforms.

With the purchase of Ultimate, Zendesk said it will "offer AI agents with enhanced intelligence that are not just reactive, but proactive problem solvers." Zendesk CEO Tom Eggemeier said in a statement that the purchase of Ultimate will free up human agents to build relationships and resolve complex challenges.

Reetu Kainulainen, CEO and co-founder of Ultimate, said the deal with Zendesk is about melding human and AI agents to service customers.

Ultimate's AI agents can handle up to 80% of support requests by levering backend knowledge bases.

The purchase is expected to close this month. Zendesk was already integrated with Ultimate, which also integrates with Salesforce, Freshworks, Live Chat and others.

Zendesk has been beefing up with acquisitions. The company recently closed the purchase of Klaus, which has AI-powered quality assurance for customer experiences.

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Let's Talk DXPs: A CR CX Convo with Liz Miller

Let's Talk DXPs: A CR CX Convo with Liz Miller

Let's talk about DXPs. Digital experience platforms are all the rage as executives across IT and CX are hoping the platform can bring some order to digital chaos. But there are some problems...first of which the very definition of what a DXP is or is not is much debated and the descriptor of "core set of tools" is all too often left up to enterpretation. Liz Miller talks through how she has faced the issue of what a DXP and why some unlikely contenders made their way onto the Constellation Research Shortlist.

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