Tech

Meta Cautious About Near-Term Profits from Generative AI

Meta’s recent investment in generative AI, including its new AI assistant, is unlikely to be a quick path to increased profits.

This was the message from CEO Mark Zuckerberg during the company’s first-quarter earnings call.

While Meta is a profitable company, with revenue growth expected to slow, Zuckerberg emphasized long-term investment in AI, similar to past successful ventures like Stories and Reels.

He acknowledged the challenge of building a leading AI system, stating it “will likely take several years.”

Despite its prominent placement in Instagram and other platforms, Zuckerberg highlighted the need to assess user engagement with the Meta AI assistant.

The true measure of success lies in whether users find it valuable and return to it frequently.

Monetization strategies are still under consideration, but Zuckerberg hinted at using user interaction with the assistant to improve ad targeting based on purchase interests.

This approach differs from OpenAI’s, which focuses on subscriptions and enterprise solutions rather than advertising.

The call also addressed Meta’s smart glasses with Ray-Ban. Zuckerberg reported strong sales and praised the recently launched multimodal AI capabilities.

Overall, Meta is taking a cautious approach to monetizing generative AI, prioritizing user engagement and long-term potential over immediate financial gains.

The success of its AI assistant and smart glasses will be key factors to watch in the coming years.

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