Mark Zuckerberg, the CEO of Meta, recently conveyed to investors that while the company is enthusiastic about the potential of Generative AI, it isn’t expected to be a profit generator in the near future.
This statement came during Meta’s earnings call for the first quarter, where the focus was largely on how the newly integrated Artificial Intelligence features across platforms like Instagram, Facebook, and WhatsApp might eventually contribute financially to the company.
However, people over the internet don’t seem to believe Mark’s words,
Do you really believe anything Zuckerberg says? After all he once said that Facebook would never take your data.
— Jason C. (@_TwistedTech) April 25, 2024
Despite boasting a significant increase in net income, reaching over $12 billion from $36.5 billion in revenue in the last quarter, Meta anticipates a slowdown in revenue growth. In conjunction with this, the company’s expenditure on AI and metaverse technologies has escalated more than ever.
Zuckerberg likened the incorporation of Generative AI into their applications to past successful enhancements like Stories and Reels, suggesting a promising but gradual yield from these investments.
Predicting that profiting from these technologies will be a long-term process, likely spanning several years, Zuckerberg said,
Meta’s AI assistant has seen considerable initial engagement, with tens of millions trying it out since its broader release last week, marking a significant uptick in interaction within its applications.
However, the real measure of success will hinge on whether users continually return to the AI features and the broader adoption of AI assistants in social media contexts.
Zuckerberg also outlined potential revenue streams from the AI assistant, currently free for users, including the expansion of business messaging, incorporation of advertisements, and paid content within AI interactions, as well as premium services for larger AI models and increased computing power.
Zuckerberg further added,
This approach diverges from competitors like OpenAI, who have so far avoided ad-based models in favor of subscriptions and enterprise services.
Meanwhile, Meta continues to innovate in other areas as well, with Zuckerberg highlighting the success of their smart glasses in collaboration with Ray-Ban, now sold out in multiple styles.
Zuckerberg remains optimistic about non-display AI-integrated smart glasses becoming a mainstream product sooner than anticipated, hinting at a significant market for fashionable, tech-integrated eyewear.
Tech enthusiasts also seem to like these smart glasses.
Meta has taken its Ray-Ban Smart Glasses to the next level by integrating multimodal AI capabilities. This enables users to analyze photos using simple voice commands. With this users can do a range of tasks, including object identification and language translation.
— 𝑨𝒓𝒕𝒊𝒇𝒊𝒄𝒊𝒂𝒍 𝑮𝒖𝒚 (@artificialguybr) April 25, 2024
As Meta navigates its journey through the evolving dynamics of AI, its strategy involves a cautious yet hopeful outlook on the integration of these technologies into everyday social media use, aiming for a future where AI not only enhances user interaction but also contributes significantly to the company’s profitability.
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