Google’s new AI tool impacts shares of Figma; details inside

Google's new launch impacted Figma, as its shares declined this week. Scroll down to read the details.

The stocks of Figma dropped after Google came up with a new AI-powered design tool. This raised concerns over the growing competition in the domain of design software. The product of Google is called Stitch and has been intensely feared, as per reports. It’s because of its possible impact on the established design tools like Figma. The shares of Figma dropped by almost 8 per cent on Wednesday and further by more than 4 per cent on Thursday. The stock overall is down by almost 35 per cent this year, as reported by CNBC. This highlights the pressure on the software industry, as AI is now reportedly disrupting the traditional business models in every domain.

What’s the new design tool of Google?

Google has recently launched a tool named Stitch in beta. It is an artificial intelligence (AI)-driven tool which allows users to generate designs with the help of simple prompts. The platform provides them with real-time feedback and has the capability to even provide responses to the voice inputs. The tool of Google at present is free to use. However, there is a possibility of future pricing, as per reports.

The tool caught the immediate attention of everyone in the design domain. CEO Sundar Pichai’s Google is positioning the tool as a great design platform (autonomous). Its features include generation, refining, and much more. All this can be possibly done with minimal manual effort.

Our AI Studio vibe coding roadmap for the new few weeks:

– Design mode
– Figma integration
– Google Workspace integration
– Better GitHub support
– Planning mode
– Immersive UI
– Agents
– Multiple chats per app
– Simplified deploys
– G1 support

And more, should be fun : )

— Logan Kilpatrick (@OfficialLoganK) March 19, 2026

Logan Kilpatrick on X wrote, “Our AI Studio vibe coding roadmap for the new few weeks: Design mode, Figma integration, Google Workspace integration, Better GitHub support, Planning mode, Immersive UI, Agents, Multiple chats per app, Simplified deploys, G1 support, And more, should be fun…”

Impact of the new tool on Figma’s stocks

The rollout of Google’s Stitch has raised concerns among investors due to the increased competition. The stocks of Figma went down by almost 8 per cent on Wednesday and further by 4 per cent on Thursday.