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Adobe and Canva: AI investment competition in the creative software market

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Investments in artificial intelligence (AI) influence the competitive dynamics within software providers in the creative software market. This paper uses a game-theoretical approach to ex amine Adobe and Canva’s strategic investments in AI and their impact on their market position, focusing on price competition and AI driven quality competition. Findings include that locked in customers create profit stabilization and incentives for strategic investments for Adobe. Dif ferent investment scenarios are used to analyse how AI quality differences and price sensitivity influence customer distribution. We show that Adobe remains competitive with its locked-in customers and can expand its market position with AI investments.

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Investment competition Game Theory Artificial Intelligence Incumbency effects

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Licença CC