Everyday AI Podcast – An AI and ChatGPT Podcast - EP 548: Disney vs. Midjourney - Will Hollywood kill AI?
Episode Date: June 17, 2025If Midjourney is the first AI company to go down, will YOU be going down with them?Disney and Universal launched a massive lawsuit against AI image-generating giant Midjourney, but there's a catc...h. Have you been following Midjourney's Terms of Service the last few years? We're breaking down what might happen if the Hollywood Studios win their lawsuit against Midjourney and what it could mean for the rest of us.Newsletter: Sign up for our free daily newsletterMore on this Episode: Episode PageJoin the discussion: Have a question? Join the convo here.Upcoming Episodes: Check out the upcoming Everyday AI Livestream lineupWebsite: YourEverydayAI.comEmail The Show: info@youreverydayai.comConnect with Jordan on LinkedInTopics Covered in This Episode:Disney Sues Midjourney: Copyright InfringementHollywood vs. Midjourney: Legal Battle InsightMidjourney's Image Generation: User RisksAI Image Generators Under Legal ScrutinyMidjourney's Terms Shift: User LiabilityAI and Copyright: Visual vs. Text DifferencesPotential Impact: Hollywood's AI Legal PrecedentMidjourney's Financial Growth Amid LawsuitTimestamps:00:00 "Everyday AI with Jordan Wilson"03:26 "Midjourney's Impact on AI Evolution"09:21 Disney & NBC Sue Midjourney13:30 Unauthorized Use of Copyrighted Material15:58 "Viral Stormtrooper AI Content Rise"20:32 AI and Copyright Challenges23:57 "Midjourney Terms of Service Disclaimer"26:16 Stay Informed with Our Show29:20 Midjourney's Decline and Licensing Shift31:15 Hollywood's War on AI?Keywords:Google Gemini, AI image generators, copyright infringement, Disney lawsuit, Universal lawsuit, Midjourney, AI video generation, copyright lawsuit, scraping the internet, copyrighted material, generative AI, AI entertainment category, New York Times vs OpenAI, Microsoft lawsuit, StabilityAI, AI sacrificial lamb, generative AI scene, AI creative industry, IP infringement, terms of service, Hollywood studios, Motion Picture Association, federal lawsuit, unauthorized training, infringement without prompts, technical filters, Midjourney explore page, Disney fan art, AI content creation, AI legal battles, transformative fair use, permanent injunction, model retraining, AI startups, generative AI impact.Send Everyday AI and Jordan a text message. (We can't reply back unless you leave contact info)
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Have the big AI companies finally met their match when it comes to scraping the internet and maybe infringing on someone else's copyright?
Well, in this case, I'm going to say probably because Disney and Universal are suing mid-jurney for copyright infringement.
and I'll show you the examples here on today's show.
This one might look kind of cut and dry.
So on today's show, I'm going to tell you what the heck this lawsuit is even about,
who I think will win,
and how it might not actually be mid-journey that is in the most trouble.
It might be you, the user.
All right.
I'm excited to talk about this one.
Disney versus Mid-Journey and Will Hollywood Kill?
AI. Let's find out. What's going on y'all? My name is Jordan Wilson and I'm the host of
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But let's get straight into it.
Is a big AI company finally going to go down in a copyright lawsuit?
I think especially when it comes to text, it can be hard to prove something, right?
And there's plenty of lawsuits.
And we're going to talk about those in a bit.
But this one might be the most cut and dry lawsuits that we've seen to date,
at least when it comes to the biggest names.
So if you don't know, Mid Journey, I would say, is probably one of the biggest names in AI.
Yeah, maybe you aren't using it, right?
But Mid Journey was one of those first AI startups, AI companies that really was
riding this wave, right?
before we saw impressive AI image generators from Open AI, Google, Adobe, and the other
household names, it was Mid Journey. Mid Journey started this AI image craze, even though technically
Open AI might have been first with its Dolly 2, which is not a great-looking model.
I do think Mid-Journey popularized this whole category, the AI photo category, which is becoming
the AI video category, which is just becoming the AI entertainment category.
You can make the argument, Mid Journey is the OG, but now they're like, oh, M.G, they might be
in a lot of trouble.
All right.
So let's talk about what's actually happening here.
So Disney and Universal have sued Mid Journey for making ripoffs.
All right.
And in the lawsuit that they just filed, the studios just filed, they called Mid Journey.
This is great language, by the way, a bottomless pit of plagiarism.
You know, the old journalist and wordsmith in me had a good chuckle at that.
I'm like, that's some good alliteration and a good way to paint a picture.
And so let's take a little bit, kind of a breakdown here of what's actually happening.
And I am going to be showing some of the visuals on my screen from the actual lawsuit.
So podcast audience, if you want to see that, they're going to be in the newsletter.
We're going to be linking to them if you want to see them.
But let's talk about what's actually happening here.
And my hot take, it's hot take Tuesday after all.
So we do the news Monday, hot take Tuesday.
And we're doing the put AI to work Wednesday kind of thing going on.
So here's my hot take.
I think this Disney lawsuit could be the first big domino to fall in the generative AI scene.
There's bigger lawsuits that I think, like as an example, the New York Times versus Open AI in Microsoft,
there's bigger law.
lawsuits that may take longer and may ultimately be more consequential.
We've seen Stability AI, another AI image generating company in lawsuits.
This is the biggest name.
And Mid Journey could be the biggest domino that falls.
And what Disney is asking for, they're essentially saying, hey, this can't go on, right?
They're looking ultimately for an injunction against Mid Journey.
And if that happens, could this be the first domino?
because Mid Journey is not the only AI image generator you can go in and type a simple prompt
and get something that, hey, this is copyrighted material.
It's based on, you know, maybe something that's, you know, Disney or Pixar or, you know,
name, fill in the blank of any, you know, major studio, major, you know, movie series, you know,
Marvel, right?
DC, there's so many, you know, these big billion and trillion dollar companies that
own IP that's kind of just been getting ripped for months or years by some of these AI image
generators. The problem is, and here's the hot take coming. No one's going, no one's going to go after
in Open AI. They want to be friends with Open AI. No one's going after Microsoft or Google or these
other big companies. They don't have the pockets, right? Even though Disney is probably the biggest player,
But the studios don't have the pockets to go toe to toe with the biggest guys.
So in this case, mid-journey just might be the AI sacrificial lamb and could actually be the first AI domino to fall.
Could this impact the rest of the AI creative industry?
It could.
Do I think it will?
I'm not sure, right?
This is one of those where I'm actually not sure how it's going to play off, right?
Play out.
Like as an example, you could say the New York Times versus open AI case.
That case, I think, is bigger.
The potential ramifications are much higher.
But I have a pretty decent idea on how that one's going to turn out.
I personally think that the New York Times did not make a strong case.
If I'm being honest, the New York Times lawyers do not understand large language models,
or at least they didn't when they first filed their report back in December 2020.
right? We're pretty far into that case and I don't think it's going anywhere. And I think
Open AI has already done a pretty good job of, you know, kind of backhanding the New York Times and
being like, yeah, that's not how this works. This one with Mid Journey is a little cut and dry because
the evidence obviously visually is hard to argue against. But is Mid Journey actually going to be
in trouble or is it going to be you? We covered this last year. And I told you, I literally told
you. And you know I bring the receipts, especially on Hot Take 2.
Tuesday. I told you all, got to be careful with Mid Journey. Yeah, guess what? They changed their
terms of service. And they essentially said, hey, if we ever get in trouble for copyright,
it's on you, user. It's not on us. They literally say that plainest day. All right. So we're
to be breaking this all down. Let's get into the details. And hey, live stream audience, let me know
what you think. I'm like, I'm honestly curious. Like, what do you all think? Do you think that
mid journey is going to get sued?
Do they have a chance to win this lawsuit?
Is there any way that they can overcome this?
When it looks, I'm going to show the example side by side.
It looks plain as day.
Is this going to have a lasting impact on the generative AI space?
All right.
Let's get into it.
Go over some of the details here.
All right.
So this lawsuit is fresh.
Just June 11th.
Disney and NBC Universal filed a federal lawsuit.
And there can.
Plaint Brand's mid-journey as a bottomless plagiarism pit,
exploiting iconic characters that are their IP,
that they have copyright over,
and also the Motion Picture Association,
obviously backs the studios,
signaling a United Hollywood front.
So let's just say if Universal and Disney win this lawsuit,
I would expect most other studios to fall in line,
whether it's against Mid-Journey or other kind of AI
creative startups. Again, I don't think the big companies have too much to worry about right now
because their pockets are deeper, right? These studios, they're going after the small fish,
right? Because they don't want to go toe to toe with a tech trillionaire company. A lot of times
this is, you know, sometimes who just has deeper pockets, who is going to drown who in
legal fees and motions and drag this thing out for a decade or longer. Sometimes that's what
this turns into. So I think these lawsuits are going to start going after the like quote unquote small guys,
right, even though they're not small, right, these AI startups that are making hundreds of millions
of dollars of revenue, but there's a difference between making hundreds of millions of dollars in
revenue and tens of billions of dollars in revenue. You probably don't want to go against the ladder.
You're going to pick off the former. So speaking of, yeah, so in this report, we saw that Mid Journey is
reportedly earning about $300 million in subscription revenue, and that is projected to hit $500
million of revenue in 2025. So it's not like mid-jurney is some, you know, small like, you know,
two dudes in a basement, like, oh, you can't, oh, poor mid-jurney, right? They do say that they're
a super small staff, like a dozen or so employees, what they say. So, I mean, if that's the case,
like price per, like revenue per employee is mind-boggling. We did also see that nearly 21,
million users generated images in September of 2024.
And the studios are seeking damages and nationwide injunction halting infringing outputs.
And let's just be honest here.
That's not possible, right?
There would be no way that Mid-Journey can be like, all right, we're going to keep the
service going on.
But let's take out all this stuff with, you know, with Universal or Disney or with the
Hollywood studios.
I don't know how you can undo that.
right? I'm sure there's a way to technically do it, but I'm guessing it would be faster for them to
start over versus, you know, trying to weed out what's copyrighted and what's not. Because,
yeah, there was a smoking gun that their CEO said something earlier, which we're going to get to
later in the episode. So here is a actual kind of copy of the lawsuit here. It's 130 pages.
I read through about half of it. I used a couple of
AI tools to help me read through the rest.
But here's what you need to know if you don't want to read this 130 page lawsuit that
was filed in the U.S. District Court of Central District of California.
So I'd say kind of four big points here.
I'm going to bullet point them in our newsletter.
If you do want to read that long lawsuit, we're to be linking it in the newsletter,
but we are going to be showing some of the exhibits that the big studios make against
mid-journey.
So number one, I mean, pretty simple here.
They say there's a direct creation of copyrighted characters.
So they say that Mid Journey service directly generates nearly identical images of copyrighted characters like Darth Vader,
Minions, and Shrek from simple text prompts.
And I showed you guys this before.
You know, in Mid Journey, I done, this is why it's great having like a thousand hours or more of like live streams.
It's like I showed you.
You can even, you know, put in a prompt not asking for copyright.
content and get copyrighted content.
You know, Mid Journey was kind of, I'll say, overzealous in how they did that.
But number two, admitted unauthorized training.
So they said that Mid Journey CEO admitted that they pull off all the data it can
and they never sought any copyright content holders consent to copy and exploit their works.
So this means that they built there that Disney is a, the studios are alleging
that Mid Journey built their AI by illegally copying vast amounts of copyrighted material.
The next big point that the studios made in their lawsuit is that there was infringement
without even specific prompts.
So the AI will generate copyrighted characters, as an example, Spider-Man, Simpsons,
the minions, even when users give generic prompts that don't specifically name the characters.
That's where it's like you can't really argue against it because even when users aren't trying
to generate copyright content, it's like, it's going to happen.
And then the fourth biggest point in this lawsuit is that there was a willful disregard in
continued infringement because the studios alleged that Mid Journey has the technical ability
to block infringing content, which they use for other filters such as nudity or violence,
and that the studios did send Mid Journey a cease and desist letter, but that they reportedly
refused to implement any copyright protections.
instead released a what they called a new and improved version of their service that continued
to generate what the studio said were infringing images. So yeah, it's a very long lawsuit and
there's a lot of examples that literally show side by side. But for our audience here, I'll
show you one or two very quick examples. So, you know, this one in the lawsuit, the studio say
in response to the prompt Storm Trooper Battle Scene, Movie Still Screen cap, Mid-Journey,
the data about Disney's copyrighted work that is stored by the image service and then
reproduce publicly displayed and made available for download an image output that copies Disney's
Stormtroopers as shown in the screenshot.
And then on the right side of the lawsuit, they include two pieces of Disney's copyrighted
characters and the Stormtroopers from Star Wars.
And then on the left side, it is the Mid-Journey output, which is better, right?
It's kind of funny.
The Mid-Journey visually looks way better.
than Disney's, you know, copyrighted characters that they included.
I don't know if that was intentional or not.
It's also, the timing on this is actually kind of funny because, yes, this lawsuit
technically just dropped, but it's been right around the same time that if anyone has
seen this, the kind of viral, you know, Stormtrooper vloggers have just taken over social
media.
I don't know this.
I haven't seen it.
Or sorry, I haven't seen this personally, you know, like on my feed, because I'm not on
social media, aside from like LinkedIn, but I've seen a lot of stories and we cover this in our
newsletter that these, uh, these essentially, you know, using these tools to first create an AI image
and then going image to video. And now that there's, you know, V-O-3 and all of these other tools that
you can use, uh, to generate, um, audio. So you're seeing it's, it's a little different because you can
use essentially just any AI image generator with the stormtroopers because they have a helmet and you can't
see their mouse. So people are making all of these like first,
You know, Storm Trooper vlogs that are getting millions of views online.
So it's kind of ironic, I guess, that those Storm Trooper AI vlogs are blowing up right
at the same time as this lawsuit.
And one of the specific things that the studios are pointing out and in their examples is
Storm Troopers.
Obviously, one of the biggest, you know, kind of IP, I don't know, characters and probably
one of the most recognizable in the world, regardless of whether you're a 70-year-old or a, you know,
10-year-old. It's probably one of the most recognizable pieces of intellectual property by the studios
there. So there's a smoking gun in this. And are you to blame? Are we to blame? Who's actually
going to get in trouble? All right. I'm going to answer those questions here in just a second after a word
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All right. So what is this smoking gun and is Mid Journey just trying to pass the blame to users?
So here's the smoking gun. So in a 2022 interview, Mid Journey CEO essentially admitted that they do a big scrape of the entire internet and essentially acknowledged that it is impossible for them to be tracking permissions for hundreds of millions of scraped images, which I didn't even though there's that many scraped images.
also like I said you can just prompt Darth Vader and it will return a flawless copyrighted
design in seconds right and you can even describe Darth Vader without using the word
Star Wars or Darth Vader and it's very possible you would get Darth Vader so essentially
it's already been said in an interview that Mid Journey essentially just scrapes the internet
guess what's on the internet mainly just copyrighted material right there's
very few things that are as an example, creative commons on the internet.
I would venture to guess that it's like a fraction of 1% in terms of visuals that are on the
internet that are actually technically free and available to scrape.
And even in those cases, you would have to do so with attribution.
But that's just not how these AI image models work.
They don't attribute.
So the argument from a lot of the AI image generators is, well, we don't ever reproduce
anything one one to one right it's essentially a mirror of society and we put together every visual
that's ever been made in a pot and you know you ask for something and something that pops out is
actually unique it's never a one-to-one copy but what goes into the pot copyrighted ingredients right
this has always been the not so a secret big elephant in the room is like what's going to happen
when this finally goes to court and when is there going to be a gavel that's ever a
against an AI company.
And maybe this is one of them.
Because when you look at the,
when you look at the evidence side by side,
it's hard to argue, right?
Even text on the text side,
if you ask a large language model
for specific lyrics from a song,
a lot of times it won't give it to you
for copyright reasons.
You could ask for a specific famous recipe, right?
Maybe there's a cook that has a TV show
and they're known for a recipe.
You ask for it, it's not gonna give it to you.
Right?
If you ask for all,
You know, an excerpt from, you know, a copyrighted book might not give it to you verbatim, right?
It might change some things.
So even on the text side, right, there's a lot of gray area and probably more ways around this.
And I think it's easier to look at the text side and be like, okay, yeah, this seems unique, right?
When you look at an image side by side, you're like, no, that seems like a blatant copy, right?
So the studios say that they've been ignored and they've sent warnings.
So a 20-23 cease and desist letter that they demanded, the studios demanded that Mid-Journey
take them down and the studio said that Mid-Journey ignored them.
And they said that, they alleged that then the company just released a new,
higher-quality version despite legal pressure.
And also in the lawsuit, it shows that even on Mid-Journey's explore page,
which is kind of like a version of their homepage,
it was still showcasing Disney fan art to users,
allegedly even after this, you know, cease and desist letter.
So it's not exactly like Mid Journey was trying to run away from this, right?
It's just like, it's there.
It was there the whole time.
It's still there.
That's not still there.
But you can still very easily go find this content, right?
It's not like, you know, this lawsuit dropped last week and now it's scrubbed from the
website or from their servers, you can't.
All right.
So who's actually to blame?
All right.
So I'm a dork and I'm obviously a former investigative reporter.
So I obviously went on and found every single version of MidJourney's terms of service that I
could find on Archive.org looked at them line by line and saw that obviously their terms
have changed drastically, especially as Mid Journey became a very popular tool.
But it was actually in early 2020.
that their terms of service took a very unuser-friendly, abrupt halt.
So essentially, in this updated terms of service from early 2024,
where they're saying, yeah, copyright claims, that's on you user, that's not on mid-jurney.
And there's a clause in there that warns that violators will pay legal fees,
not coming from Mid-Journey's wallet.
And the terms of service also bans IP infringement outright,
and it threatens lawsuit in permanent bans.
guess what?
All right.
I'm going to skip the head.
Don't be shocked because we warned you.
Literally in January of 2024, right after these new terms of service came out,
we did an entire episode on this.
All right.
And here's among other things, what those new terms actually said.
They say, you are responsible for your use of the service,
the service being mid-jury.
If you harm someone else or get into a,
dispute with someone else, we will not be involved to the extent permitted by law.
You will indemnify and hold us harmless our affiliates and our personnel from and against any
costs, losses, liabilities, and expenses, including attorney fees from a third party claims
arising out of or relating to your use of the services and assets or any violation of
these terms.
So mid-turn is essentially saying like, hey, if you've been in trouble, it's on you.
It's in our terms.
We're not going to help you.
It's on you.
Right.
These are not normal terms for an AI company.
And that's literally why we had to go listen to episode 180 back in January of 2024.
I actually pulled the transcript.
And here's what I told you 18 months ago.
I said talking about these new terms of service, I said that becomes especially
problematic. When we start to see AI image generators like this create highly replicated almost
pixel-for-pixel perfect duplications from movies. And then I said, you might want to
re-look at your use of Mid-Journey. Mid-Journey's new terms of service a little troubling. And then
later I go on to say, I don't know if you understand what's going on here. And I also said,
I don't know if our team at Everyday AI can continue to use Mid-Journey with these
terms. There's a reason why I haven't been covering mid-jurney hardly at all in the past year
and a half in these new terms of service. That's one of the reasons why, right? Essentially,
they're passing all blame, 100% blame to the users, which like I said, that is not normal.
That is not normal. That's also the risk that you take if you don't read the fine lines.
That's also, y'all, you don't have to worry. You don't have to worry. You don't.
have to worry about like, oh my gosh, what's going on. Anytime something like this happens,
we obviously cover it on the show. This is why you need to be tuning in every single day,
because if you're trying to grow your company and career, you can't always be worried about
what's in the fine print of all these services. What's changing? How does this impact me?
That's what we do. That's what we do. So, you know, just shouting ourselves out because a year
and a half ago, we told you about this, right? Yes, I went back in red, going all the way
back to 2022, 2022, 23, 24 in today's terms of service to see the differences and to see how it
shift. And essentially, in early 2024, mid-journerner, you just said, nope, hey, if, if there's ever a lawsuit,
if there's ever any IP, anything, it's on you. But I don't know if that's going to work.
Because even when, as the lawsuit pointed out, number four, willful this, uh, sorry, number three,
infringement without specific prompts. These are just four of the bullet points that I pulled out of this.
These weren't bullet points from the actual 130 plus page complaint.
So these are four of the bullet points I pulled out.
But the third one that I said was most important is infringement without specific prompts.
So the AI generates copyrighted characters, even when users give generic prompts that don't
specifically name the character.
So that's what I'm saying.
I think mid-turn is going to try to pass the blame, right?
Because it's in their terms.
And they're going to be like, well, it's in the terms.
But then, you know, users are going to be like,
Oh, like, what happened in all these times?
I just said, give me a superhero and they didn't name anyone by names.
And then if it gives them all of DC and Marvel and then they start using that, I don't know,
in their marketing or something.
And they're like, I didn't ask for, you know, copyrighted content.
You gave it to me.
So it's going to be a lot of finger pointing like, much like that, you know, that Spider-Man
meme where it's like mid-journey terms of service user, you know, everyone's pointing at each other.
So who's ultimately going to take the blame here?
But I do want to quickly talk about these other copyright battles because these aren't the only ones, right?
So we've seen the Getty images versus stability AI.
Right now, the judge is allowing the New York Times lawsuit against Open AI and Microsoft.
That's going to be one to watch.
And there's been dozens of, you know, fairly high profile individual artists or groups that are filing over and over fresh federal infringement claims.
But I think this is the big, when you think about who's the biggest name in entertainment,
it's got to be Disney, right?
They've got everything under their lineup.
They're the biggest.
They are entertainment, right?
So the biggest name and entertainment going against what appears to be one of the easiest
targets.
And at least on paper, one of the most blatant,
parent violators, right?
I showed you.
Go look, side by side.
I've experienced it myself. There's a reason we stopped using Mid Journey.
And this is not just happening in movies.
It's happening in other places.
You know, as an example, music publishers.
But there, I think, ahead of the curve in terms of where this kind of fight is right now
with Hollywood Studios and Mid Journey.
And also, it is worth noting Mid Journey did just release a video mode.
It's not good.
yet, but I'm sure it's going to start to become really good. But on the music side, record labels
have previously launched suits, lawsuits against Suno and UDO last year, but now they're actually
close to licensing agreements. So maybe that's what could happen here. I don't think necessarily
because I think there's when you're starting to talk about a AI startup that's making
hundreds of millions of dollars of revenue, I don't know. I don't know.
So what's ultimately going to happen?
And here's what each side is saying.
Mid Journey claims that their training and outputs are transformative fair use.
And the actual copyright law and fair use is very much up for debate like not just here in the U.S.
but worldwide.
AI companies are challenging it.
They're saying, you know, copyright law is antiquated.
And they're saying, you know, this is fair use.
When we, you know, never spit something out verbatim one to one,
that's fair use.
So that's the argument anyways, regardless of if you believe in that or not,
the studios are seeking financial damages undisclosed amounts and a permanent
injunction to stop Mid-Jurney from infringing on their copyright,
which I don't think is possible, even though the studios are saying like,
yeah, it's totally possible.
I don't think it's possible.
And a studio victory would force these huge model purges, retraining.
And I don't know if this is ruled against Mid-Journey.
I don't know if Mid-Journey makes it.
out. Maybe they do, maybe they don't. But I think if nothing else, that could be the biggest
domino to fall, right? Because I would guess other studios are going to get on board
suing other smaller AI image generator companies because at that point, the precedent is there.
And at that point, is Hollywood killing AI? Maybe not. But if this is the first domino and it does
fall in the studio's favor, they're at least going to be shooting them down one by one.
All right.
I hope this episode was helpful to get you caught up on what's actually happening and
how it might impact your company, your career, especially if you're in the creative field.
You've got to keep an eye on this.
And we're going to be doing that for you.
When there's updates, you know we're going to be covering them.
So I hope this was helpful.
If it was, please go to your everyday AI.com.
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Hope this hot take Tuesday was a good one for.
for you. Please join us tomorrow. We're going to be doing our new segments, putting AI to work on Wednesdays.
It's a very good one. You're not going to want to miss it. So thanks for tuning in. Hope to see
back tomorrow for that and every day for more everyday AI. Thanks y'all. Meet Firefly AI assistant.
Now live in Adobe Firefly, the Allman One Creative AI studio. Just describe what you want to create in your
own words and the assistant handles the rest, orchestrating multi-step workflows across Adobe Creative
Cloud apps, including Photoshop, Premiere Express,
and more in one conversational interface.
You direct the outcome while the assistant accelerates execution.
Stand control with the ability to step in and refine at any time.
See it today at firefly.adobie.com.
And that's a wrap for today's edition of Everyday AI.
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