- Meta CEO Mark Zuckerberg discussed long-term potential of generative AI despite current lack of profitability.
- Integration of ChatGPT competitor (Meta’s AI Assiatant) across platforms marks transformative journey for Meta.
- Strong financial performance tempered by potential revenue growth slowdown due to AI and metaverse investment.
- Monetization strategies for AI assistant include business messaging, ads integration, and premium subscriptions.
- Optimism expressed for smart glasses collaboration with Ray-Ban, highlighting popularity and AI capabilities.
In the latest earnings call, Meta CEO Mark Zuckerberg offered investors a glimpse into the company’s ambitious venture into generative AI, acknowledging the current lack of immediate profitability but emphasizing its long-term potential.
With the recent integration of its ChatGPT competitor across platforms like Instagram, Facebook, and WhatsApp, Meta is setting the stage for what Zuckerberg believes will be a transformative journey, albeit one that requires patience.
Despite Meta’s impressive financial performance, with net income surpassing $12 billion on $36.5 billion in revenue in the last quarter alone, there’s a slowdown in revenue growth.
This is partly due to the increased investment in AI and the metaverse, both of which are central to Meta’s future strategy.
the initial signs are quite positive here, too. But building the leading AI will also be a larger undertaking than the other experiences we’ve added to our apps, and this is likely going to take several years.”
Mark
Zuckerberg drew parallels to past successes such as the rollout of Stories and Reels noting the promising initial reception of Meta’s AI assistant, which has already garnered tens of millions of users.
The true test lies in fostering sustained engagement and widespread adoption of AI assistants within social media apps.
Monetization strategies for Meta’s AI assistant include scaling business messaging, integrating ads or paid content into AI interactions, and offering premium features through paid subscriptions.
Meta aims to leverage AI to enhance app engagement, ultimately driving more targeted advertising.
AI is already helping us improve app engagement, which naturally leads to seeing more ads and improving ads directly to deliver more value.”
Mark
Unlike OpenAI, which has focused on subscription-based models and enterprise solutions, Meta is leaning towards advertising as a primary revenue stream for its AI endeavors.
Beyond generative AI, Zuckerberg is optimistic about Meta’s smart glasses collaboration with Ray-Ban, noting their popularity and the significance of their multimodal AI capabilities.
I used to think that AR glasses wouldn’t really be a mainstream product until we had full holographic displays, But now it seems pretty clear that there’s also a meaningful market for fashionable AI glasses without a display.”
Mark
While Meta’s foray into generative AI may not yield immediate profits, Zuckerberg remains bullish about its long-term potential, buoyed by promising early adoption and a strategic roadmap for monetization.