Adobe ADBE and Alphabet GOOGL are infusing artificial intelligence (AI) into their core offerings. While Adobe’s ongoing AI push has been helping in advancing the company’s footprint among business, creative and marketing professionals, Alphabet has been infusing AI into its Search and Cloud platform.
According to IDC, investments in AI solutions and services are projected to yield a global cumulative impact of $22.3 trillion by 2030. This represents roughly 3.7% of the global Gross Domestic Product and bodes well for both Alphabet and Adobe stocks.
However, Adobe or Alphabet, which has an edge right now?
ADBE is benefiting from strong demand for AI-powered Creative Cloud Pro and Acrobat, as well as AI-first products, Firefly and Acrobat AI Assistant. The company now targets annualized recurring revenue growth of 10.2% for fiscal 2026, driven by an innovative AI-powered portfolio, expanding adoption of enterprises and a large market opportunity.
Adobe has been focusing on strengthening its footprint among marketing professionals through the Adobe Experience platform and apps that power customer engagement and loyalty. GenStudio is strengthening Adobe’s footprint among marketers. Adobe Experience Manager (AEM) and agentic web solutions, including LLM Optimizer, Sites Optimizer and Brand Concierge, are delivering brand visibility and discovery. The Semrush acquisition will enhance Adobe’s expanding portfolio of AI-driven customer experience solutions, including AEM, Adobe Analytics and Adobe Brand Concierge.
For fiscal 2025, Adobe expects total revenues between $25.9 billion and $26.1 billion. Adobe expects Business Professionals and Consumers’ subscription revenue between $7.35 billion and $7.4 billion. Creative and Marketing Professionals subscription revenues are expected to be between $17.75 billion and $17.9 billion.
However, Adobe’s AI business is minuscule compared with the likes of Microsoft and Alphabet. OpenAI, Salesforce, Midjourney and Canva are other major competitors.
Alphabet’s initiatives to infuse AI in Search and Google Cloud are noteworthy. The company has been actively embedding AI, especially within Search, to enhance user experience, provide better AI-focused features and consequently improve ad performance. In November, Alphabet launched Gemini 3, its latest state-of-the-art reasoning model. It now powers Search, via AI Mode. Google AI Pro and Ultra subscribers in nearly 120 countries and territories in English can use Gemini 3 Pro by selecting “Thinking with 3 Pro” from the model drop-down menu in AI Mode.
Alphabet’s expanding AI infrastructure is helping it win enterprise clients. Google Cloud Platform’s prospects remain robust, driven by strong demand for enterprise AI infrastructure, including TPUs (led by seventh-generation Ironwood) and GPUs, enterprise AI solutions driven by demand for the latest Gemini and other AI models, and other services, including cybersecurity and data analytics. Google Cloud is also benefiting from strong Gen AI adoption due to leading models, including Gemini, Imagen, Veo, Chirp and Lyria. In the third quarter of 2025, revenues from products developed on Google’s Gen AI models surged more than 200% year over year.
Accelerating spending on AI infrastructure bodes well for GOOGL stock. For 2025, Alphabet now expects to spend capital expenditures between $91 billion and $93 billion, up from the previous estimate of $85 billion. The company expects capital expenditure to increase significantly in 2026.
