Adobe's switching costs are deeper than technological disruption fears account for — inertia, professional pride, and misaligned incentives within organizations make rapid AI-driven replacement unlikely, while Adobe's software cost is negligible relative to total organizational expense.

We're all creature of habits. And as uninspiring as it sounds, inertia is just very good whenever you're thinking about it in terms of a business model. And you also have to consider that people follow incentives. And of course, in this day and age with AI, it seems like it should be a tailwind. Shareholders, management, they want the employees of whatever kind of company to embrace AI. For example, to become more productive or to save on costs, guess what? Most employees do not have the same incentive. They think, and perhaps rightly so, that any efficiency gains doesn't really benefit their paycheck. And worst case, they can lose their own or the coworkers' jobs. ...Even if we are looking away from the financial incentives and job risk and so on and so forth, there is a professional pride in knowing how to use Adobe. If you're a designer and you're taught those tools, you've used it for decades, it's really difficult to embrace a new technology where there is a level playing field for I wouldn't say everyone, but more or less everyone and certainly someone who's entry level who might be making a third of what you're making. ...the overall cost is significantly less than 1% of our total cost. So as much as it sounds great, let's use something that's cheaper and it's sort of like a different discussion if it's better, but let's say that this is going to be a lot cheaper. You know, even me as one of the owners of the company, as much as I would like to save on cost, it's just not really a cost saver.

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