Adobe faces friction with its Stock contributors. The updated reviewing algorithm has led to higher rejection rates—some contributors report 40% rejections—due to issues like “similars” and “quality” flags. This has discouraged submissions, with fears that AI-generated content (now 80% of Adobe Stock's illustration category) is devaluing original work.

**Adobe's challenges with its Stock contributors reflect broader issues in content moderation and the impact of AI on creative work.** Here's a detailed analysis: 1. **Algorithmic Challenges and Rejection Rates**: Adobe's updated reviewing algorithm has led to increased rejection rates for contributors. This is evident in the reports of 40% rejection rates due to issues like "similars" and "quality" flags. The algorithm's focus on similarity and quality standards is likely causing a significant number of submissions to be declined. 2. **Impact of AI-Generated Content**: The rise of AI-generated content, which now constitutes 80% of Adobe Stock's illustration category, is a contributing factor to the challenges. This shift has led to concerns about the devaluation of original work and has likely affected the perception of contributor-submitted content. 3. **Contributor Disillusionment and Submission Changes**: The higher rejection rates and the perceived bias towards AI-generated content have led to discouragement among contributors. This has resulted in some contributors considering deleting their accounts and starting anew due to the high number of rejections. 4. **Potential Solutions and Future Prospects**: Adobe is addressing the issues through Content Credentials, algorithm refinements, and feature enhancements like upscale tools to maintain ecosystem trust. Despite the short-term friction, Adobe's strong financials (89% margin, $4.5B cash) and $583/share intrinsic value suggest a long-term investment potential. 5. **Market Analysts' Perspectives**: Analysts have mixed views on Adobe's stock, with some downgrading the stock due to concerns about the impact of AI on future growth. However, others remain bullish on Adobe's fundamentals and potential for growth, especially with its AI strategy and solid financials. In conclusion, Adobe faces significant challenges in balancing the influx of AI-generated content with the need to maintain the quality and uniqueness of contributor-submitted content. While the company is working on solutions, the transition presents both risks and opportunities for Adobe's future performance.