Figma takes a hit as Google doubles down on ‘vibe design’

FastCompany: This week, Google announced new features for its AI -powered interface tool Stitch—in the process, it signaled that it’s going all-in on “vibe design.” “We are evolving Stitch into an AI-native software design canvas,” Rustin Banks, product manager at Google Labs, wrote on the company’s blog, The Keyword . “With it, anyone can create, iterate, and collaborate to turn natural language into high-fidelity UI designs.” Launched last March during the annual Google I/O developer conference, Stitch sets out to give people an accessible tool for creating front-end user interface designs for projects like websites or mobile apps.

While late to a market already occupied by competitors like Figma and Cursor, Stitch’s new features are catching the industry’s attention and posing a threat to incumbent platforms that are scrambling to keep up with the relentless pace of AI design software updates . [Screenshot: Google] What’s new in Stitch The announcement outlined five major AI-powered updates to the platform, including integrations with other artificial intelligence platforms, voice capabilities, and design agents.

Among the major updates is a complete redesign of Stitch’s UI: an infinite canvas similar to Figma’s that allows for all project iterations to be in one space. The canvas also allows text, images, or code to be added to the canvas as context. Google introduced AI agents as well, with a design agent tailored for design reasoning and an agent manager feature to keep tasks and workflows organized when the agents are working on multiple ideas at once. Stitch expanded its existing design system tool kit, which allows users to import or export design rules and use, and can now be used with DESIGN.md, an agent-friendly markdown file.

[Screenshot: Google] “This lets you, for instance, apply your designs to a different Stitch project so you don’t have to reinvent the wheel every time you start,” writes Banks. The platform also offers an instant prototype feature that turns the existing project into an interactive preview of an app. And Stitch’s new voice capabilities allow users to speak their ideas and transform them into prototypes or act as a sounding board and critic.

“The agent can give you real-time design critiques, design a new landing page by interviewing you, and make real-time updates—such as “Give me three different menu options” or “Show me this screen in different color palettes”—as you speak,” Banks explained. Is Stitch the Figma killer? Following Google’s announcement on March 18, Figma’s stock ( NYSE: FIG ) dipped and is currently down by 4% at the time of publishing. Some are calling Stitch an existential threat to Figma, whose Figma Make tool is a direct competitor to the free-to-use Stitch. (Figma declined to comment for this story.) “Figma tanked 8% today on this news.

Now down 80% from IPO in Aug 2025,” John Wang, head of crypto at Kalshi, said on X in reply to Google’s announcement. It’s worth noting that stocks for software-as-a-service (SaaS) companies are notoriously reactionary. In the last quarter, IBM’s stock plummeted 20% over three months, with experts attributing the dip to Anthropic’s announcement that its Claude Code tool can modernize COBOL systems. For that reason and more, calling Stitch a “Figma killer” might be premature. Figma still corners the market for the professional design workflow.

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The article discusses a significant shift in design practices with Google's new tool, which could influence brand strategies and competitive dynamics in the industry.