Figma's stock decline for the year accelerated over the past two days due to concerns over artificial intelligence, after Google introduced a new AI-powered design product. On Tuesday, Google released a beta product named Stitch, which allows users to input prompts to generate designs for their projects. Google described the feature as a "design agent" capable of providing real-time design feedback and responding to voice commands. Google is not charging for Stitch and has not committed to the service's availability. However, as Wall Street remains alert to all potential threats from AI, Figma is facing pressure. Figma shares fell 8% on Wednesday and dropped more than 3% on Thursday. The stock has declined approximately 35% this year, in line with a broader downturn in the software sector. A representative for Figma declined to comment. Figma went public in July, assuring investors that the company is well-positioned as more users adopt AI products for design. Adobe attempted to acquire Figma in 2023 but ultimately abandoned the planned $20 billion transaction due to regulatory hurdles. Adobe shares fell about 4% over the past two days. If Google eventually launches its new feature for paying customers, it could signal an attempt to capture more of the product design workflow and retain users within its enterprise ecosystem. The company has substantial financial resources, extensive distribution channels, and a willingness to bundle products. Google did not immediately respond to a request for comment. In October, Google Cloud and Figma announced an expanded partnership to integrate more of Google's generative AI technology into the Figma platform. Figma's Make tool enables users to input a few words and utilize AI models from Anthropic and Google.