Why Leonardo.Ai makes sense for Canva amid increasing heat from AI competitors
The graphic design unicorn is facing disruption from smaller, AI-driven rivals – which may have prompted its acquisition of Leonardo.Ai.
Just a few months ago, close watchers of Canva began to express concern that the Australian graphic design unicorn could be vulnerable to the rise of generative artificial intelligence.
Although Canva has implemented a number of AI features into its products, a recent analysis by New York-based private market research company Sacra argued that the company faces increasing competition from free, AI-driven graphic design tools, despite its push into the enterprise market.
Meanwhile, a Wells Fargo research note on key competitor Adobe from May suggested Canva’s recent high-profile announcement that it was moving into the enterprise space didn’t make the market impact it hoped for. Adobe's position in the market “remained robust in light of Canva’s enterprise growth and the synergies between the two companies’ products,” the note said.
Just over a week ago, Microsoft announced the official launch of its AI-powered Designer app, which TechCrunch described as “Canva-like. The app allows users to generate images and designs using text prompts, creating items such as stickers, greeting cards, invitations and collages.
